Wednesday, May 12, 2010

Pay No Attention to That Man Behind the Curtain

The Case for Auditing the Fed Is Obvious, Cato Briefing Paper No. 118


Anonymous said...

not enuff pix - too many "words". is there a "bottom line" so I can go back to wathcing Treme?

litzi said...
This comment has been removed by the author.
Doc Bok said...

The audit would accomplish nothing, in all likelihood. And it would cost a bunch of money, it would get everybody all wound up, and would probably cause at least a transient dip in stocks--especially if the verdict is that the Fed is incompetent. In that case, the dip would not be transient, it might cause irrevocable damage.
Having said that, it is hard to argue the point that we should at least know and then decide whether or not knowing was/is important. Without knowing, we can't do anything intelligent. Personally, my guess is that an audit would demonstrate that the Fed took everything going on seriously, and actually acknowledged all factors, deliberated appropriately about each of the variables and ultimately made decisions based on careful consideration. They will have had an incomplete fact set and will have made some mistakes, most likely minor, that are evident only with hindsight. And even if one disagrees about the decisions taken, I am sure it will be hard to argue that the decisions were not arrived at in a sound fashion. And that, my friend, is coming from someone that you have known for twenty years to be an unintelligent, die-hard conspiracy theorist.

Has your eye stopped bleeding yet?

Anonymous said...


Doc Bok said...

I couldn't have said it better myself. Cheerio.