On May 1, William Dudley, the President of the New York Fed delivered a speech to the Atlanta Fed’s 2016 Financial Markets Conference. Dudley, who was previously hauled before Congress to examine his Wall Street cronyism, spent two-thirds of his talk meandering around the academic nuances of liquidity in a stressed market and then zeroed in for the kill. Dudley wants to extend the powers of the Federal Reserve as the lender of last resort beyond just banks to (wait for it) include broker-dealer stock trading operations. Under that scenario, Bernie Madoff’s market-making operation (that was also a fraud according to the Madoff Trustee Irving Picard) might have been borrowing from the Fed during the crisis of 2008. Maybe Madoff could have even borrowed enough from the Fed to still be operating.….Wall Street On Parade
New York Fed President Is Worrying About the Next Crash; He Should Be
Pam and Russ Martens
2 comments:
American citizens should be the lender of last resort via equal fiat distributions to individual citizen accounts at the Federal Reserve for lending to or asset buying from those who need liquidity (fiat) at market rates and the Federal Reserve forbidden from such activities. And if market rates are deemed to be too high for the national good then more fiat could be equally distributed to those citizen accounts to bring them down.
And since accounts at the central bank are inherently risk-free then what need for government-provided deposit insurance except to privilege the banks and the most so-called creditworthy, the rich?
What's not to like? Equal Protection under the Law wrt fiat creation? De-privileging the banks and the rich?
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