Forget about NYC ever recapturing London’s financial crown. What sane hedge fund manager would de-privatize all his information, and submit to “surveillance” by the very Praetorians who have exacerbated every shock of the last 20 years?
Treasury eyes stronger powers for Fed
By Gillian Tett in London and Krishna Guha in Washington
Published: April 29 2008 23:23 | Last updated: April 29 2008 23:23
Meanwhile, data showed accelerating US house price declines and further declines in consumer confidence.
The Federal Reserve could use proposed new regulatory powers to try to stop credit and asset market excesses from reaching the point where they threaten economic stability, the US Treasury said on Tuesday.
David Nason, assistant secretary for financial institutions, said the Fed could even use its proposed “macro-prudential” authority to order banks, hedge funds and other entities to curtail strategies that put financial stability at risk.
By “leaning against the wind” in this way, the US central bank could “attempt to prevent broad economic dislocations caused by potential excesses”, he said.
His comments come amid debate inside the Fed as to whether it should try to do more to contain asset price bubbles, following the housing and dotcom busts. Some see enhanced regulatory powers as a better tool for this than interest rates.
The proposed new powers – outlined in a Treasury blueprint published last month – require legislation and may never be authorised. But policymakers see the plan as offering a template for future regulation.
The blueprint envisages giving the Fed roving authority to collect, analyse and publish market data from a wide range of institutions, from banks to hedge funds.
“The market stability regulator must have access to detailed information about all types of financial institutions,” said Mr Nason.
Hedge funds are uneasy about this proposal. However, many European central bankers are eager to acquire the kind of macro-prudential powers the Treasury would like to give to the Fed.
Notwithstanding the bad job Mr. King is doing for BOE, today’s rate decision shows why Helicopter Ben is still the real emperor (with no clothes).
I once saw a documentary on YouTube about Central Banking Conspiracy:
http://youtube.com/watch?v=D7HmiJ7wnmo&feature=related
Initially, I completely disregarded it. But the more I think about it, the worse I feel. (Please see all the parts – and the last section of the last part is quite amazing.)
Sorry for posting the outside link, but every person should see it – and think about it.
I feel for you man! Planning to move to Dubai/Qatar? That seems to emerge as the next center of the (financial) world.
Is it any wonder that our beloved Chairman detests the gold standard so much?
(BTW, note that your blog maybe monitored. Every time I comment, someone checks on me. Strange no?)