Thomas Hoenig, Federal Reserve Governor: Too Big To Fail Is Worse Than Ever

New York Times:

THE world has experienced a severe financial crisis and economic recession. The Treasury and the Federal Reserve took actions that saved businesses and jobs and may very well have saved the economy itself from ruin. Still, the public seems ungrateful, expressing anger at these institutions that saved the day. Why?

Americans are angry in part because they sense that the government was as much a cause of the crisis as its cure. They realize that more must be done to address a threat that remains increasingly a part of our economy: financial institutions that are "too big to fail."

Read the whole story: New York Times

Comments

[MyTake]

11:19 PM on 12/02/2010

He, HuffPo.

Put this articles on YOUR FRONT page and quit burying them.

Drudge puts right out front and they get 1000's of view while YOU GET A LOUSY 50 COMMENTS because it is BURIED on your site!

[Intolerantcentrist]

10:53 PM on 12/04/2010

YEP!

[Algo]

12:49 PM on 12/02/2010

Ordinary Americans are the underwriters of the elite global gamblers that, in the name of market efficiency and arbitrage, exact a heavy toll. They win regardless. Just too bad that they pay nothing for the underwriting - wait a minute, they pay in political donations - but nothing to the ultimate underwriters, the American people.

[halfpricefaustian]

12:41 PM on 12/02/2010

He didn't mention that the rescue of the financial sector by the Fed was just another version of trickle down economics. They saved the largest and wealthiest, made them even larger and wealthier, and then waited for it to trickle down the the rest of the economy. There is no trickle down, the largest get larger, more and more risk is concentrated in fewer places and they have no incentive to reduce their risk because they know they cannot be allowed to fail. We are in worse shape now than before.

[GardenerNorCal]

12:35 PM on 12/02/2010

Hey the DOW is over 11,000 what could possibly be wrong with the world? Isn't that why we bailed them out?

[sunshine14]

10:16 AM on 12/02/2010

Trillions of tax payers money sitting there in the Fed Resources, being given away with no interest hardly to keep banks and corporations their OWN business going to reap profits, from tax payers money lent to them , reaping billions in profits, being charged next to nothing in interest? Yet vote no no to unemployment, to the very people who gave them Trillions of dollars next to nothing in interest? 

Given Trillions of free money to corporations, who in turn, move all their corporations over seas, give American jobs away to Asia? Like someone gives $1 million dollars to help someone out, then that same someone takes your lively hood and home around right from under you? And calls you lazy, not working hard enough, or doing drugs? And by the way what a job, give me massive tax cuts to boot?

[GardenerNorCal]

12:26 PM on 12/02/2010

But they need the protection. Our economy depends on it. Our government certainly hasn't shown that they believe average workers are necessary, we're expendable. We're on notice unemployment isn't going to decrease for quite awhile. So why are they still asking us to support THEM?

[sunshine14]

10:04 AM on 12/02/2010

Correct me if I am wrong, for I am ignorant. 
Fed Resources gives free almost $ Trillions of dollars, to Banks, Corporations, to keep their business going, pay for all expenses to get richer, with next to NOTHING in interest charges, 0.07% which is hard working  tax payers money.

Then theses very wealthy banks,  corporations move their 10s of thousands of corporations, which American tax payers loaned them Trillions of dollars, 0 interest almost,  over to Asia and give American jobs away? And to boot, theses same banks corporations do not want to pay their fair share of taxes. 
And on top of not paying their wealthy fair share of taxes, what AGAIN for middle class to give them massive tax cuts, to create jobs for the very middle class who gave them Trillions in dollars, of free interest? I am confused----beautiful socialism for the rich you think? we all be rich, if we got that right? 

Wealhly do not even need to labor for $1 dollar-to get ahead in life, given freely to them

[GardenerNorCal]

12:23 PM on 12/02/2010

You forgot hand out bonuses to the very people that lead us into this mess.

[sunshine14]

09:55 AM on 12/02/2010

I am confused so the Fed holds Trillions yes Trillions of Tax payers money right?
Yet the Congress makes theses same Tax payers also pay down the nations deficit with high interest payment also. Congress is double dipping in the pockets of all American tax payers, who are the middle class right? 
Not corporations money in the Fed Resources right? Tax payers Trillions of dollars=owners
Plus middle class have to pay off the Nations Deficit also, not the wealthy? 


Wealthy do not even have to labor hard for not 1 dime to get richer right? Wealthy get great free free free socialism, not $1 dollar of theirs in the Fed Resources, plus wealthy do not want to eve pay their fair share of taxes, in the land that the wealthy live and given free money over over over again , with no interest, to get richer, off the hard labor of its own citizens, and the wealthy dare call the middle class lazy? want something for nothing? doing drugs? hello?

[GardenerNorCal]

12:28 PM on 12/02/2010

It's all the poor folks fault, those that sought to put a roof over their heads. The banks didn't have to tell the truth it's not their job.

[sunshine14]

09:48 AM on 12/02/2010

What Thomas H said, the Fed is to big to fail? What did he say, I am confused? Who gave out Trillions of Tax Payers $$$$ dollars (without their own knowledge), controlled? by a few men?,  with no interest, freely handed over Trillions, of tax payers money to banks? foreign corporations, without knowledge given to all tax payers and at almost  0 interest?? Who got that little .70 interested also?

Which if Trillions given out, that 0 almost interest would still not be junk change either would it? Was that put back in? Why cannot all Americans have social security and full health care then, that is their Trillions of dollars right? They the tax payers money, they worked hard for right?

[quiviran]

08:17 AM on 12/02/2010

What Americans don't seem to get is that the Federal Reserve Bank is not a government agency and exists to serve the banking industry. America abdicated to private interests in 1914 and the extent of their greed is just now revealing itself. It seems, however, that none of them have read "The Goose That Laid the Golden Egg" or the history of the French Revolution. You don't need a lot of stuff to make a guillotine, the main element being a pissed-off population.

[vooter]

08:21 AM on 12/02/2010

Indeed....

[sunshine14]

10:26 AM on 12/02/2010

So the Fed Resource Bank is REALLY the middle class bank, that holds all tax payers dollars, that feeds and supports, feeds,  the others, to get wealthy on tax payers dime? Middle class give free tax payers dollars, next to nothing in interest, really free socialism, given to  banking industry and corporations? So banks and corporations start up cost is NIL, just use others money, not earned? Boy who would love to start a company any company not having to give $1 dollar of your own or hard labor or sweat, to earn that $1 dollar, to get rich? And if one fails, do not worry, go get more free money, just keep rolling

. Whow that is awesome game plan you think? And do not have to pay fair share of taxes, and only give a job, to anyone, only if they pay you money, to give you a job. Cost you nothing. Ching ching-Bingo, one hits the jackpot ever time.

[rafaelbolero]

07:12 AM on 12/02/2010

It is simply organized crime, a terminal tumor, and a painful way to die.

[GardenerNorCal]

12:32 PM on 12/02/2010

Yet our past and current governments are more interested in it's survival than ours.

[yougg]

07:11 AM on 12/02/2010

There are some really good people out there. These banks need to be broken for sure.Anti trust laws can be brought in to do this.The Fed needs democracy within it self. Letting the New York branch have too much power is peanalizing the rest of the country.

[GardenerNorCal]

12:33 PM on 12/02/2010

What ant-trust laws still exist?

[GardenerNorCal]

12:33 PM on 12/02/2010

Not just this country but the world economy.

[themodernleader]

06:48 AM on 12/02/2010

   This is an extradinary statement of facts, conclusions and truth,  It comes from the mind of a loyal, patriotic American.  It comes from a responsible Federal Reserve President.  It is knowledge that Americans must have to combat our decline and restore our confidence, trust and renewed vision.  Thank you courgeous, competent  Fed President Thomas Hoenig, Kansas Branch.
   We must start a new movement of a new deal for the American people and governance.

[Velvetus]

05:11 AM on 12/02/2010

Ding! ding! ding! Give this man a kewpie doll!

Make no mistake, the banks are running scared from this whole fraudclosure thing. It very much has the possibility of bringing these banks back to the Fed's doorstep, hat in hand. If that happens, I just pray there is *someone* in Washington with the gonads to let them fail and break them up for the good of this country.

[JohnnyAce Okeke]

04:52 AM on 12/02/2010

Keep on inflating that bubble. I don't wanna grow old anyway. {{-_-}}

[spidey25]

02:55 AM on 12/02/2010

You want to get rid of the Fed? You want to end the corruption on Wall / Washington Street? Then get off your lazy fat B U T T S, and buy some physical silver. Crash JP Morgan, and bring the whole system down. All we need is for 20% of America to buy 5 little ounces of physical silver each.
http://bizcovering.com/business/let-it-crash/
http://bizcovering.com/investing/silver-its-the-next-big-thing/

[acudoc]

03:28 AM on 12/02/2010

I've done it---and it feels damn good!

Link to---

http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=161