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View Diary: Rubio's big lie: Government created the housing crisis (85 comments)

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  •  The Fed isn't the government. (2+ / 0-)
    Recommended by:
    shoeless, JerryNA

    It was established by an act of the government, but it's fundamentally a private entity.  Congress can watch the Fed,  but they don't control it, and neither does the President.  

    Governmental agencies can give advice to the Fed, but the fed can (and usually does) ignore them at will.  

    The Fed was warned about the housing bubble (specifically the danger posed by CDOs and CDSs)  by the office of Thift Management, and its chairwoman Brooksley Born.  Born's warning was dismissed out of hand by Greenspan.  Nobody else on the Board of governors dared stand up to Greenspan and the cult of personality he built for himself.  Nothing changed.      

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