Tuesday, August 24, 2010

What has happened to the FOMC?

I don't think the FOMC is a democracy. Despite the fact that they take majority rule votes, the Chair has a lot of influence and much more than 1/n of the power in the room.

That said, the current FOMC is totally bogus! The regional presidents are who they are, but let's consider the Board of Governors.

First, why have we appointed relatives to be on the board? I am referring of course to the Vacant twins.

Second, Daniel Tarullo is a lawyer and a lifelong bureaucrat. What in the world is he doing on the FOMC?

Third, and perhaps worst, consider Elizabeth "Betsy" Duke!! A Fine Arts major from UNC in 1974, she went from part time bank teller post graduation to chief financial officer of the Bank of Virginia Beach in 1978. She then got her MBA from Old Dominion in 1983, and now she's voting on US monetary policy?

That's a real Cinderella story, innit?

People, could we at least pretend to take things seriously and get some folks with training and track records in economics, finance, and business on the BOG?

4 comments:

http://abebedorespgondufo.blogs.sapo.pt/ said...

Very good.

tc said...

Gus,

Maybe W confused Betsey with Daisy Duke?

Mungowitz said...

Hey! Don' be hatin' on UNC.

REW said...

Boy this confuses me. The primary failure of the FOMC is exactly that a cadre of elites cannot possibly manage the currency as well as the market could (Abolish the Fed!). So maybe that means until we do abolish the Fed, we're better served by the first dozen names in the phone book than the monetary elite.