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Hey Coriolanus,
…
Hey Coriolanus,
The thing is the FED actually does not “set” interest rates the way most people think.

Basically since they are so big they buy and sell in the open market, causing changes in the money supply, which then causes changes in the interest rates.

This is important because at some times we need lower interest rates than other, like right now for example, and the market may not dictate this at the proper times.

There are also about 500 other reasons but I’m out of comment room!

Thank you, nice job!
Thank you, nice job!

what do i need to …
what do i need to study to be able to articulate this crisis the way you re able to
what would be a good major in school to take on

Hello David, why …
Hello David, why did the Federal Reserve start to raise interest rates in late 2004?

The Commodity …
The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.

You stated that as …
You stated that as a result of the subprime mortgage crisis a liquidity crisis arose. Wasn’t it more of a solvency problem?

Feds lost control …
Feds lost control over the Fed Rate, according to this video:
v=bL0bgz_VHTo&NR=1&yt

He omitted the fact …
He omitted the fact that bad loans were insured in order to get a higher rating to make them look good; and insured again by speculators that did not even own the investment. Unregulated and perfectly legal insurance fraud (misrepresentation and casino gambing).

I say we remove …
I say we remove Geithner and Mary Schapiro and appoint David Waring as the head of both the Treasury Department and the SEC.

So why did the …
So why did the Federal Reserve increase the interest rate in 2004?

my pleasure thanks …
my pleasure thanks for the comment. If you look on the homepage of my site I have recently posted an article “7 solutions to the financial ciris” which covers this. Best Regards, Dave

Thanks for the …
Thanks for the videos. I learned alot.

I think Greenspan is getting senile, today he said that you can stop asset bubbles by increasing capital requirements. That just increases the cost of credit. The next time you have a real estate bubble, you’ll have the same problem, assuming that banks are still in the business of loaning against real estate. If you want to stop this problem, then eliminate the federal subsidies for real estate development and investment, then require people in that industry to put their own money at risk instead of someone elses. If Greenspan really wants to change the banking system, though, then simply ban 95% and 90% LTV loans. Require a bigger equity cushion. BTW, the “too big to fail” argument is a fallacious one. During the Great Depression, Canada had no bank failures. The reason was that their banks were very large. The banks closed branches, etc., but none of them failed. By contrast, the US was dominated by thousands of very small banks, and we had more than 10,000 of them fail. So there is nothing inherently unsafe about a banking system dominated by large banks. The real problem with large banks is that during good times, they don’t provide enough competition for each other.