Now that we know more about Fed actions in 2008 it is not at all reassuring to know that our government covered up the potential collapse of capitalism as we know it.
Over $4 trillion dollars went to stalwarts of American industry including General Electric and Caterpillar and household-name companies such as MacDonalds, Verizon, Harley-Davidson and Toyota. Even our mutual investment funds were rescued by Fed action, with millions of Americans on the verge of losing their life’s investments.
We should audit the Fed. We should also embrace a strong ‘trust but verify’ stance towards America’s financial industry and infrastructure, whether that is the Fed or the banks or both.
I believe that we need a Federal Reserve.
In 2008 the Fed did what it was intended to do, but what it also did was pick winners and losers. The American people still lost big.
Many of the banks rescued through Fed action cut their customers and small business off at the knees in their time of greatest need — all the while being rescued via inexpensive megaloans. The Fed needs to attach a ‘do unto others’ clause in any further or future financial rescues.
The real question is whether we have learned something or not. I think not.
We have bought into the big lie of what is good for big business and for big money is also good for us. We have bought into this rationale and big lie for so long that there are those that will see the Fed audit itself as an attack on the American way of life — even though the Fed probably saved it for us all.
The lesson that we need to learn is that the Fed is supposed to work for America, not just for big money and big business. And the biggest lesson learned: none of them deserve our trust.