Good Afternoon! We will be waiting for months, to realize the extent of the devastation and damage to human lives, physical property, state and federal economy that will be affecting Texas cities and many communities from Hurricane Harvey, ahead of America's long task of cleanup. Our hearts and prayers are with all the victims who endure, but surely ...will reclaim their lives and overcome this tragedy, by G-d's grace.
I have faith in their resolute resourcefulness, spiritual and mental fortitude coupled with the help of the nation behind them, to survive and thrive again in spite of the short-term mal-effects of this disaster. My major worry is for the long-term problem that lies ahead of America. A man-made disaster that daily threatens to destroy the fabric of the American culture, society, Consitutional rule of law and ultimately...our democracy.
I was reading about American Economist and Chairwoman of the Board of Governors of the Federal Reserve System, Janet Yellen. She advocates staying with the current course of Federal Reserve banking policies. There is a controversy on both sides of the central bankers' conference in Jackson Hole, that could end up affecting her re-appointment, as Federal Reserve Chief, when her term ends in February 2017. Regardless of Presidentially favored nominations, all are subject to Senate confirmation.
What is concerning about this conference is Trump's desire to make a major overhaul of the conservative policies designed and implemented since the last financial crisis. Yellen advocates support to continue strong financial regulations on banks, to prevent any return to another financial crisis, ever again.
Trump's nomination of Randal Quarles, for the position of the Federal Reserve Vice Chairman of Supervision, complains that banking "stress tests", are too rigorous and complicated.
Yellen counters, " The events of the crisis demanded action, needed reforms were implemented and these reforms have made the banking system safer."
All king's and successful dictators, follow certain paths that are critical to effectively dismantle and silence opposition and implement mass reliance by their kingdom's demographically disproportionate population of uneducated and naive citizens dependence on their governmental institutions. My fear is that the "dissoulution" of democracy is steadily occurring and like the old metaphor of a perfect snowball rolling down hill to Hell-will become quickly uncontrollable and successfully accomplish its mission.
"Good Day!" and "Boner Appertite!"
Excerpt from the New York Times:
August 25, 2017
YELLEN WARNS AGAINST ERASING BANKING REGULATIONS
GRAND TETON NATIONAL PARK, Wyo. — Janet L. Yellen, the
Federal Reserve chairwoman, delivered a strong rebuttal on Friday to Republican criticism that
financial regulation is impeding economic growth.
In a speech that amounted to a warning to the Trump administration, Ms. Yellen said that people were forgetting the lessons of the crisis that began a decade ago. Ms. Yellen argued that the United States must remain committed to strong financial regulation to provide a stable foundation for economic growth.
“Enhanced resilience supports the ability of banks and other financial institutions to lend, thereby supporting economic growth through good times and bad,” she said.
Ms. Yellen extended an olive branch to the Trump administration, saying the Fed wanted to improve regulations, including easing the burden on smaller banks and reviewing restrictions on investment activity by larger banks. But she emphasized that she was not proposing the kind of major overhaul favored by Mr. Trump. “Any adjustments to the regulatory framework should be modest and preserve the increase in resilience at large dealers and banks associated with the reforms put in place in recent years,” she said.
One specific difference concerns the Fed’s annual “stress tests” of large financial institutions. Randal Quarles, nominated by Mr. Trump to serve as the Fed’s vice chairman of supervision, has described the tests as too rigorous and too complicated. Ms. Yellen said testing “has contributed to significant improvements in risk management.”
She noted that large banks have shifted to a more stable mix of financing. Funding from equity investors, or capital, has doubled, while the least stable funding, short-term wholesale borrowing, has been cut roughly in half. “Banks are safer,” Ms. Yellen said.
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