At times online friends and I write on the same subjects at the same time, and when that happens, I’m pleased. This is a team effort, not a competition. Sometimes we even draw from the same sources. I often humorously quip, “Great minds fall in the same ditch!” But now, we have a case where great minds have written an article together, and these great minds are Bernie Sanders (I-VT) and Elizabeth Warren (D-MA). This is what happens when giants meet!
The decisions made by the next chair of the Federal Reserve will have a powerful impact on the economic well-being of every person in America.
While the largest financial institutions and corporations in this country have been bailed out and are now back to making enormous profits and rewarding their executives with outsized compensation packages, recovery hasn’t gone so well for the rest of America. Middle class families have continued to lose ground economically, the number of Americans living in poverty is near an all-time high, and the gap between the very rich and everyone else is growing wider.
The next Fed chair will have enormous power and influence over our entire financial system and the direction of the economy. The Fed is responsible not only for our country’s monetary policy, but it is also a key regulator of financial institutions. In our view, the president’s nominee for Fed chair must be committed to improving the lives of working Americans who are still struggling through the worst economic crisis since the Great Depression.
To that end, we think any Fed chair nominee should be able to answer the following four questions:
Question 1: Do you believe that the Fed’s top priority should be to fulfill its full employment mandate?
The U.S. continues to face a major crisis in unemployment. When Wall Street was on the verge of collapse, the Fed acted aggressively and with a fierce sense of urgency to save the financial system. Will you act with the same sense of urgency to combat the unemployment crisis in America today, and will you make clear what specific actions you will take? What rate do you think is acceptable and should be the Fed’s target?…
Inserted from <Truthdig>
They are spot-on, and I gave you only one of the four questions, with follow-ups, they would ask. Click through for the other three, as it is an education in what’s wrong with the Fed and what needs to happen there.
I would add a fifth question:
Question 5: Are you one it the Three Blind Mice?
If yes, are you Larry “Wrong Way” Summers or Timmy “The Tool” Geithner? If the answer is either, flush immediately, and DO NOT CONFIRM.
16 Responses to “When Giants Meet”
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Q Can the brave Bernie Sanders and excellent Elizabeth Warren save the world? Perhaps they can – if we can muster enough help!
Amen, Pat!
Bernie Sanders and Elizabeth Warren are my heros'….
Ditto that, Richard.
Imagine what a Presidential ticket they would make. Unfortunately, Bernie Sanders has no aspirations to the higher office. Elizabeth Warren? It's anybody's guess.
Roght, Patty. I see Elizabeth in 2020 or 2024.
What an awesome team – these two could turn the GOP on their heads and make them twirl. Elizabeth Warren is young enough and bright enough to have an amazing career – she has a big fan here.
Here too, Arielle! I rank her with Krugman, Reich, and Stiglitz.
Once cloning has been perfected, I hope we saved some Bernie Sanders & Elizabeth Warren DNA – because I want them to be FIRST in line.
Amen, Nameless.
Time will tell all – I certainly hope people listen to these two giants!
I do too, Lee.
Excellent article. Based on past actions, Geitner and Summers don't have the balls nor the intelligence to do what is necessary to move forward.
1 Significantly reduce unemployment which will boost the economy because people will have money to spend.
2 TBTF? — I say, TBNTF (too big not to fail). 30% larger with inadequate regulation, limited oversight and still making risky moves. Sad when greedy banksters can put the entire country, indeed global markets, in the toilet!
3 Wall St has shown that it cannot be trusted — get Glass-Steagall back in place as well as other suitable regulation and oversight.
4 Don't allow excess reserves to sit idly by. Stipulate rules regarding excess reserves and make them work.
It would be interesting to hear Janet Yellen's responses. Summers and Geitner are more likely to try and dazzle the Senate confirmation committee with fancy footwork and bullshit.
Spot-on, Lynn. So would I
I share your admiration for both these people, I wish there were more like them in Washington.
Amen, Edie!