What Legal Authority Does the Fed Need During a Financial Crisis?

[de officiis]

What Legal Authority Does the Fed Need During a Financial Crisis?

Eric A. Posner * - 101 Minn. L. Rev. 1529 (4/17)

* Kirkland & Ellis Distinguished Service Professor and Arthur and Esther Kane Research Chair, University of Chicago Law School

Abstract

The financial crisis of 2007-2008 exposed gaps in the law that authorizes federal agencies to provide emergency liquidity support. This essay describes the ways in which legal constraints hampered response to the crisis, proposes reforms that would make possible a unified and strong response, and criticizes the Dodd-Frank Act for weakening, rather than strengthening, the crisis-response agencies.

http://chicagounbound.uchicago.edu/cgi/ ... _economics

[SuburbanFarmer]

Fucking glorious. Hand them the keys. No more pretending. Pledge allegiance to the banking cabal.

[de officiis]

Fucking glorious. Hand them the keys. No more pretending. Pledge allegiance to the banking cabal.

You do understand that the shareholders of the very banks the Gov't. intervened to save are suing the Gov't. for billions of dollars for acting illegally...right?

[SuburbanFarmer]

Fucking glorious. Hand them the keys. No more pretending. Pledge allegiance to the banking cabal.

You do understand that the shareholders of the very banks the Gov't. intervened to save are suing the Gov't. for billions of dollars for acting illegally...right?

10/10 avatar and sig btw.

I wasn't aware, but it makes sense. Fuck everybody both ways.

[Fife]

What Legal Authority Does the Fed Need During a Financial Crisis?

Eric A. Posner * - 101 Minn. L. Rev. 1529 (4/17)

* Kirkland & Ellis Distinguished Service Professor and Arthur and Esther Kane Research Chair, University of Chicago Law School

Abstract

The financial crisis of 2007-2008 exposed gaps in the law that authorizes federal agencies to provide emergency liquidity support. This essay describes the ways in which legal constraints hampered response to the crisis, proposes reforms that would make possible a unified and strong response, and criticizes the Dodd-Frank Act for weakening, rather than strengthening, the crisis-response agencies.

http://chicagounbound.uchicago.edu/cgi/ ... _economics

Thanks for the link. It's been a while since I took a stab at Eric's view on the world. An essay in favor of expansion of the Fed's power to bail out those "too big to fail?" I see he's rocking along same as always.

[Ex-California]

Holy shit this isn't satire?

The guillotines need to be rolled out ever faster

[SuburbanFarmer]

Holy shit this isn't satire?

The guillotines need to be rolled out ever faster

Just keep up on your payments. Those blades ain't cheap.

[jbird4049]

I dislike the Obama Administration and loathe the Bush Administration, but they did splendidly saving our collective posteriors. The planetary, not just the United States' financial system, therefore everyone's economy was less than a day from systemic collapse. Perhaps just an afternoon. It would have been worse than the Great Depression. Caused by the too big too fail banks.

That's not hyperbole.

So what's the solution? And some people riding tumbrels would be nice.

[Ph64]

Rules are for "little people", the proles.
They don't apply to bankers, politicians, and other "leaders".

[Alexander PhiAlipson]

The planetary, not just the United States' financial system, therefore everyone's economy was less than a day from systemic collapse. Perhaps just an afternoon. It would have been worse than the Great Depression. Caused by the too big too fail banks. That's not hyperbole.

How do you know any of that?