Saturday, September 27, 2008
The Financial Crisis put me on the street against the Wall.
The Implicators on the Financial crisis putting me on the street against the wall. We should bring some justice and accountability for this mess?. As always said the current Government fiscal policies has been failed again. The Government knew about this issue years ago and they failed to act on behalf's on the Fundamental and Ethicals values for American Citizens following their stand on Denial Stage. Who really miss estimate the compassion, the Fundamental Values as Americans, Compassion, Ethics,
Central Banks Responsibility:
Functions of a central bank (not all functions are carried out by all banks):
Implementation of monetary policy
controls the nation's entire money supply( Which they are not such control in printing money)
The Government's banker and the bankers' bank ("Lender of Last Resort")
manages the country's foreign exchange and gold reserves and the Government's stock register;
Regulation and supervision of the banking industry: They were Sleeping all this time.
Setting the official interest rate - used to manage both inflation and the country's exchange rate - and ensuring that this rate takes effect via a variety of policy mechanisms and acting as a "bailout" lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. Acting too late
The primary motivation for creating the Federal Reserve System was to address banking panics. Other purposes are stated in the Federal Reserve Act, such as "to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes." Before the founding of the Federal Reserve, the United States underwent several financial crises. A particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Fed has broader responsibilities than only ensuring the stability of the financial system.
Federal Reserve Current System functions and responsibilities:
Be blind to a Nation crisis .
To address the problem of banking panics
To serve as the central bank for the United States
To strike a balance between private interests of banks and the centralized responsibility of government
To supervise and regulate banking institutions
To protect the credit rights of consumers
To manage the nation's money supply through monetary policy to achieve the sometimes conflicting goals of
moderate long-term interest rates
To maintain the stability of the financial system and contain systemic risk in financial markets
To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system
To facilitate the exchange of payments among regions
To respond to local liquidity needs
To strengthen U.S. standing in the world economy