Begin forwarded message:
> From: Dean Baker <dean.baker1 at verizon.net>
> Date: June 23, 2006 12:57:54 PM EDT
> To: Doug Henwood <dhenwood at panix.com>
> Subject: Re: [lbo-talk] Wall Street Rules
>
>
>
>
> well, I guess if you define a down market as quasi appropriation. I
> won't argue that point.
>
>
> Doug Henwood wrote:
>
>>
>> On Jun 23, 2006, at 12:02 PM, Ira Glazer wrote:
>>
>>> For this reason, it was striking to see a piece ("Confusion From
>>> the Fed Head") in the Washington Post's Outlook section in which
>>> Richard Yamarone, an investment analyst, matter of factly
>>> asserted that Wall Street controls the Federal Reserve Board of
>>> Fed. As Mr. Yamarone put it, "The Fed chairman may be appointed
>>> by the president and confirmed by the Senate, but his real
>>> bosses are on Wall Street."
>>>
>>> This statement is an incredible indictment of the U.S. political
>>> system.
>>
>>
>> Yes - but it's not just "politics," narrowly defined. If Wall
>> Street thinks the Fed is too loose, investors will dump bonds and
>> drive up long-term interest rates. Stocks would almost certainly
>> follow down the drain. So there would have to be some quasi-
>> appropriation of the financial markets to change this political
>> fact.
>>
>> Doug
>>
>>
>
>
> --
>
> Dean Baker (baker at cepr.net)
> Co-Director
> Center for Economic and Policy Research 1611 Connecticut Ave., NW
> Washington, DC 20009
> 202-293-5380 (ext 114)
> 202-332-5218 (H)
> www.cepr.net
>
>