Monitoring the deck chairs on the Titanic

From politico.com :

DOES DODD-FRANK HAVE A HUGE HOLE? – We spoke yesterday with John Liechty, a Penn State professor who helped design the new Office of Financial Research, which will be housed at Treasury under Dodd-Frank. Liechty said he is thrilled that the office, intended to monitor the entire financial system in order to prevent another systemic crisis, will soon be up and running. But he said he does not believe the tools currently exist to do the kind of monitoring OFR is mandated to do. And he sees no signs that federal authorities are moving to change that. “There has been no real emphasis on addressing this and that is a major strategic miscalculation. If you think you can take the existing models to monitor the entire system, that is simply a pipe dream. …

“You need a major multi-year, multi-disciplinary scientific undertaking. I think of it like our hurricane prediction capabilities in 1900 when the Galveston hurricane hit. You had a weather bureau then but it had no way to know what was really going to happen. It wasn’t until NOAA came along in the 1970’s that you had a better data collection and modeling regime. Where we are now is more like before NOAA existed. We need a real commitment to do the science and I don’t see it happening right now.”

Color me shocked. The “financial crisis” is gamesmanship. There was no “reform”. And there won’t be any reform until the Federal Reserve enjoys a thorough audit and then a brick-by-brick dismantling. A central bank is never a good idea to anyone other than the bankers who operate the scam.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: