The U.S. Treasury Department is scared out of its wits regarding the current plight of investment banking institutions. Treasury Secretary Henry Paulson claims that the government must quickly give the Federal Reserve more power to regulate the financial system, saying this year’s financial market turmoil highlighted the need for action. Know this now: we have a red herring or two in the mix.
Paulson said the nation is facing a “trio of head winds – a housing correction, capital markets turmoil and high energy and commodity prices.” While what Paulson says is true, behind the scenes we have another story playing out. The claim that the Congress must quickly give the Fed more power smacks of panic, but not without cause on several counts.
The Treasury Department is looking another failure square in the face despite Read the rest of this entry ?
