6.05.2008

Senator Response to Bear Bailout

Back when the Fed used $29,000,000,000 US Taxpayer dollars to finance JPMorgan's purchase of Bear Stearns, many expressed their concern that it really isn't the Fed's job to do that nor does the Fed, or anyone, have the right to commit tax dollars without Congress's approval. So I voiced my concern to my Senators and got a response that indicates that the Fed is allowed to commit tax dollars to whatever they like. Senator Feinstein stated:
"I strongly believe that its monetary decisions should be made independent of political influence or motives"

They are destroying the US dollar and spending taxpayer money to bailout fraudulent Wall Street firms. Glad no one in Congress is going to act on that.

So who do I write to get them to stop bankrupting the United States of America? Does this at all sound a little like how it worked in the USSR? I mean the comrades over there had no say over their government's "monetary decisions" either. Premier Bernanke, the ghosts of Marx, Lenin and Stalin applaud your efforts.

Here's Senator Feinstein's full response to my email:

Dear Mr. Negocios Loucos:

Thank you for writing to me regarding the Federal Reserve's decision to guarantee JPMorgan's $30 billion purchase of Bear Stearns. I appreciate your taking the time to express your concerns.

I understand your concerns about the Federal Reserve's recent action to prevent the collapse of the investment bank Bear Stearns. The Federal Reserve was originally established as an independent central bank to manage U.S. monetary policy, so this action represents an unprecedented shift in Federal Reserve intervention. Over the past 30 years, the U.S. financial system has moved beyond traditional banking roles to an intricate network of institutions on which credit is increasingly extended, securitized, and actively traded in a variety of centralized and decentralized markets. This evolution and has drastically altered the nature of financial stability.

Please know that while I recognize the importance of accountability and responsiveness in the operations of the Federal Reserve, I strongly believe that its monetary decisions should be made independent of political influence or motives. Be assured that I will keep your thoughts in mind as I work with my colleagues in the Senate to address the current economic downturn to provide relief to struggling American families and businesses.

Once again, thank you for writing. I hope that you will continue to share your views with me. If I can be of any further assistance, please contact my Washington, D.C. office at (202) 224-3841. Best regards.


Sincerely yours, Dianne Feinstein
United States Senator

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