Fwd: Wall Street Rules
[Dean Baker responds…]
Begin forwarded message:
From: Dean Baker dean.baker1@verizon.net Date: June 23, 2006 12:57:54 PM EDT To: Doug Henwood dhenwood@panix.com Subject: Re: [lbo-talk] Wall Street Rules
well, I guess if you define a down market as quasi appropriation. I
won’t argue that point.Doug Henwood wrote:
>
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
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Dean Baker (baker@cepr.net) Co-Director Center for Economic and Policy Research 1611 Connecticut Ave., NW Washington, DC 20009 202-293-5380 (ext 114) 202-332-5218 (H) www.cepr.net