06-03-2012 08:56 AM
I talk about the Fed Reserve on the classics board, so, here is a thread for commentary on the current events board:
Briefly, Maiden Lane is that controversial mysterious holding company(what holding company isn't? lol!) that was created after the crash in order to allocate the "stimulus" money to designated recipients. Ordinarily the Fed Reserve cannot allocate where the money is going, but, in light of the crash, money directed in order to prevent a total economic meltdown. Exactly how this was done, or even why, or if it was effective, is still up for debate.
In general, the we consider allocation of funds at the federal level to be "too much control in the hands of the few"-that is, we generally want a "free" economy. So the Fed Reserve raises and lowers interest rates, and then lets the cards fall where they may, so to speak. Well, that's also debatable. You could say that if there had been more direction of funds in the 1990's, when the fed drastically lowered interst rates, the economy may not have fallen later, and that includes the world trade center, by the way.
What do you think?