Ten years later, Senator Dorgan's financial prediction becomes reality

Dorgan was right. (0.00 / 0)

And our two Senators were wrong, unfortunately.  But I'm surprised no one at MLN has given Dodd any props for saying we should eliminate the Fed as a regulator.  I disagree with Senator Dodd on a lot of stuff.  But Dodd is right that the Fed should not be a regulator.

I recall a Himes live blog on FDL (I think it was FDL).  Someone took him to task on the notion of the Fed as a regulator.  S/he explained that the Fed has two divisions.

1) the economists / monetary policy - this is where they dine on fine china and canoodle with bankers

2) the regulators - second class citizens who are basically ignored by group #1.

President Obama is flat out wrong in keeping the Fed as a regulator.  He has absolutely no idea about banking / monetary policy ((recall when the bailout arose, he basically said (paraphrasing) "let's be quiet and listen to the adults before we react."))  IMO, Dodd doesn't know much more about banking.  But he is correct that the Fed should not, and simply - culturally speaking - cannot, regulate.

Dodd deserves major kudos for telling Benny to take a hike.

And now going way OT... CTBlogger... hope you make it to GCs hibernation party at Eli's!

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by: Tim White @ Sat Nov 14, 2009 at 09:34:59 AM CST