Goldman Sachs still owns the New York Fed

Fed Examiner fired for doing her job? (ProPublica).

Goldman Sachs found in blatant breach of The Fed’s requirements; when faced with this they would rather fire their own examiner than question the bank. Incompetence, collusion, or both? If the New York Fed cannot be overhauled, it needs to be uprooted, pronto.

“The current president of the New York Fed, William Dudley, is a former Goldman partner. One of his New York Fed predecessors, E. Gerald Corrigan, is currently a top executive at Goldman. Stephen Friedman, a former chairman of the New York Fed, was head of the risk committee for Goldman’s board of directors.” Bought and paid for.

  • The financial industry keeps harming the economy.
  • Capitalism without the rule of law is sheer lunacy.
  • Explains in part why it’s an on going, long term crisis, as well as any future and likely financial shocks.
  • Goldman Sacks advised both parties in the Kinder Morgan El Paso merger: experts at playing both sides, to their own advantage.

Stability is destabilising (BBC 4 Radio)

Why Minsky Matters. “Hy was a big thinker… And today everything has got so technical and so mathematical you have little thinkers…We need more big thinkers who are willing to buck the consensus”. (Laurence Meyer). The epitaph for economics: small thinkers unable to explain the world.

Minsky’s point being that finance introduces instability in the overall economy, while the consensus was that finance was merely the plumbing of the real economy, and has no effect on it.