Tuesday, April 01, 2008

The biggest financial reform since the Greapression

Treasury Secretary secretary Henry Paulson proposes increasing the role of the Federal Reserve to prevent future subprime-style crises. In the new plan, Paulson says,
"The Fed would have the authority to go wherever in the [financial] system it thinks it needs to go for a deeper look to preserve stability."
Slate protests:
The Federal Reserve Bank, whose job already includes regulating a large component of the financial system, has failed pretty badly at its tasks. The proposed solution—to give it more responsibility—seems ridiculous and hazardous.

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