2010-07-16

Socionomics—Audit the Fed to Financial Reform

I just wanted to give a very quick summary in one chart.
Audit the Fed CoSponsors

I used the House numbers to create a chart and compare it to the S&P 500 Index. There were no new cosponsors after December 1, 2009 in the House of Representatives. Note that there's either a delay, usual for politicians, or they were reacting to the Tea Parties, which started up in April around tax time. The big surge in cosponsers comes in the weeks following the week of April 15.


The chart below is a quick summary of what happened. Consider this snip from the WSJ article on the topic.
Fed Gets More Power, Responsibility
Just a few months ago, amid populist anger at the Fed for failing to prevent the financial crisis of 2008 and bailing out Wall Street, Congress was talking of stripping the central bank of its supervisory oversight of banks or forcing it to submit to congressional audit of its interest-rate decisions.

Instead, the new law gives the Fed more power and a better tool box to help prevent financial crises. It will become the primary regulator for large, complex financial firms of all kinds, such as American International Group, the insurer which built a massive derivatives portfolio that regulators didn't see until it was too late.




"Never let a serious crisis go to waste. What I mean by that is it's an opportunity to do things you couldn't do before." -Rahm Emanuel

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