The power of III

Summum ius summa iniuria--More law, less justice
--Cicero.

24 February 2011

Someone at the Fed has been reading LewRockwell.com!

...probably not.  But it does sound like (too late) the most internally critical Fed Bank President has taken an Austrian economic stance on Fed policy:

"A top Federal Reserve official Wednesday said the U.S. central bank was risking a new financial crisis with its easy-money policies and urged regulators to break up the biggest banks.
Kansas City Federal Reserve Bank President Thomas Hoenig, one of the Fed's most outspoken internal critics, warned monetary policy should be tailored "so you don't overshoot and cause the next crisis."


Same story as reported at ZeroHedge.com:




  • HOENIG SAYS U.S. HAS `DEEPLY' UNDERMINED FREE-MARKET CAPITALISM







  • HOENIG WARNS OF ESCALATING SERIES OF CRISES WITH RISING COSTS







  • HOENIG: LARGE FINANCIAL FIRMS CAN EXPECT BAILOUTS IN FUTURE







  • HOENIG SAYS BIG FINANCIAL FIRMS MUST NOT HOLD ECONOMY `HOSTAGE'







  • HOENIG:BIG FIRMS `HAVE SIGNIFICANT INCENTIVES' TO INCREASE RISK







  • HOENIG: TOO-BIG-TO-FAIL FIRMS POSE `GREATEST RISK' TO ECONOMY







  • HOENIG: LARGE FIRMS WERE `GAMING' CAPITAL STANDARDS PRE-CRISIS







  • HOENIG SAYS BIG FINANCIAL FIRMS ENJOY `HUGE' FUNDING ADVANTAGE




  • UPDATE:  Yesterday I got one hit from the Federal Reserve in Kansas City;  so now I can legitimately claim: 

    "Someone at the Fed has been reading the Bonnie Blue Blog."

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