Kansas City Fed Head Thomas Hoenig Discusses The Federal Reserve's Exit Strategy (Video)
Still waiting on my flight, so here's another clip from CNBC's surprisingly excellent, morning broadcast. Readers know that we've come to appreciate regional Federal Reserve President Thomas Hoenig's predilection for candor. Though he was late to dissent, Hoenig has recently been showing his independence from B-52 in his continuing call to allow large banks to fail and fall into government receivership.
I'm comfortable with giving up the charade anytime now. We're going to have to deal with Citigroup in an adult manner sometime in the next 12 months when they return looking for capital. Their off-balance sheet issues alone are enough to kill them, let alone the morass they do keep on the books.
So, it's refreshing to hear voices from Washington (Kansas City in reality, which could explain his forthrightness) that echo our belief (and yours) that certain failed institutions should actually be allowed to fail and their bondholders be asked to take the losses instead of taxpayers. But that's an old rant which you've read many times before. If only Bernanke, Geithner, Summers and Obama would listen. Fat chance to expect those beholden to the banking oligarchy to change their stripes, yet I remain optimistic, almost every day.
Reader Comments (6)
How many of you run your own finances with an off-balance sheet company that loans you money, buys your debt, and issues its own debt when in need of a capital infusion?
I have yet to see one green shoot? Don’t tell me it is the equities market. That is a result of all the freshly printed money not an economic indicator of the world economy turning around.
There is a reason that the powerful remind the meek that they have control over their suffering.
I have another quote for you…
“To sit back hoping that someday, some way, someone will make things right is to go on feeding the crocodile, hoping he will eat you last -- but eat you he will.” Ronald Reagan
LOL! I would have thought as much.
We agree with your sentiments. Well stated. The Fed might just implode in teh next few years politically, and that could be the beginning of the end.