Re: Wall Street Rules
On Jun 23, 2006, at 12:02 PM, Ira Glazer wrote:
For this reason, it was striking to see a piece (”Confusion From
the Fed Head”) in the Washington Post’s Outlook section in which
Richard Yamarone, an investment analyst, matter of factly asserted
that Wall Street controls the Federal Reserve Board of Fed. As Mr.
Yamarone put it, “The Fed chairman may be appointed by the
president and confirmed by the Senate, but his real bosses are on
Wall Street.”This statement is an incredible indictment of the U.S. political
system.
Yes - but it’s not just “politics,” narrowly defined. If Wall Street
thinks the Fed is too loose, investors will dump bonds and drive up
long-term interest rates. Stocks would almost certainly follow down
the drain. So there would have to be some quasi-appropriation of the
financial markets to change this political fact.
Doug