Jim Frugal

Has the Federal Reserve Become Too Powerful?

The Fed is in a lose-lose position. Its bandaid policy may prevent an abrupt recession leading to a possible depression, but won't stop the further economic slowdown that is the result of past financial excesses which will continue to occur unless we hold the captains of the financial industry accountable.

The CEOs and their lieutenants cannot expect to be richly rewarded for the mischiefs and the destruction of their companies and the ruin of their shareholders. Until this irrational reward system is fixed, we can expect further troubles down the road.

Demand that the shareholders must approve any compensation package of the top executives; this will go a long way in stopping the rot on the wine. Let the forces of the market take care of the rest.

The Fed should not manipulate the economy through hot and cold monetary actions. This adds to the market instability and encourage opportunistic behavior. Corporate welfare is as bad as welfare to able bodies.