Wednesday, January 07, 2009
My personal list of former members of the Federal Reserve who merit respect for their contributions to the world is rather short. Let's see... there's Paul Volcker and ... well, since he entered private practice, former St. Louis Fed President William Poole, who appeared on Bloomberg television yesterday to announce to the world that the Fed is printing money.
You can skip right to about the 14:30 mark to hear the following comments regarding the minutes from the December FOMC meeting:
If the FOMC had set a reserve target, then that would have constrained the board in terms of authorizing new credit facilities. What's being done now is that the board's new credit facility are being financed by printing money which is completely out of context to what is supposed to be an FOMC responsibility.Bill's other notable accomplishments this year include announcing to the world that Fannie Mae and Freddie Mac were insolvent in this Bloomberg report that appeared about two months before the GSE's were nationalized in September.