Definitely an interesting article in regards to interpreting how
large this financial crisis actually is. In this article you have a very
powerful source being discussed. The main eye opener from this article is the
fact that Bernanke, on behalf of the Federal Reserve, needs to ask for help. I
believe it provides a good example of how one group or organization simply
cannot come up with a reasonable solution to this multifaceted problem. Years
ago, one would have thought that the Federal Reserve could indeed find a
solution to what seems like a fiscal dilemma, but as times have changed and
reliable economic models continue to become erroneous, it is apparent that a
solution needs to be made quickly. As the deadline for the fiscal cliff approaches,
it is crucial that the President, Bernanke, and congress need to start making
headway on this problem.
On
another note, the Federal Reserve does and will continue to hold a large amount
of power in terms of fiscal policy making. The reason this feeling of the
Federal Reserve being inept essentially exists because of the amount of outside
variables that are also contributing. The Federal Reserve is very capable of
formulating a logical answer to this problem on it’s own behalf, but it may not
be the best fitting solution for the entire country as a whole. The plot
thickens to this never-ending problem when politics also come into play. Democrats
and Republicans are vexed in their decision making of what is the best decision
for the country. The power the Federal Reserve has is still a strong presence
in making the best fiscal decisions and should be recognized as so. If other
organizations started cooperating more directly in favor of the Federal Reserve
and their needs, I believe stronger efforts would be directed towards the
solution of this fiscal problem, rather than adding gas to the fire, so to
speak.
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