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February 10, 2012
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David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
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The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
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Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
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Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
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January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
June 22, 2009
/ 30 Sivan 5769
Fed rules
By
Linda Chavez
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http://www.JewishWorldReview.com |
One of the great dangers in dealing with a crisis is making major, long-term decisions based on the immediate circumstances unique to the problem you're trying to fix. In the case of the current financial crisis the conventional wisdom is that it is the result of poor oversight and loose regulation, so the Obama administration's answer is to layer on more regulations and greatly expand the role of the Federal Reserve. But the cure may be worse than the disease.
It's not often I agree with Democratic Senator Chris Dodd, but he hit the nail on the head when he suggested the Obama plan to give vast new regulatory responsibility to the Fed "is like a parent giving his son a bigger, faster car right after he crashed the family station wagon."
The president's plan would turn an agency whose historic role has been to set monetary policy into a new superagency whose job it would be to oversee any institution that has the potential to adversely affect the overall economy, including large insurance companies, hedge funds and investment banks. But adding these new areas of regulatory oversight not only concentrates enormous power over the economy in a single body but would divert attention from the important monetary function the Fed now plays: namely, control of the nation's money supply.
The administration's plan is the brainchild primarily of two men: Treasury Secretary Timothy Geithner and the director of the National Economic Council Larry Summers. Geithner's previous job was as head of the Federal Reserve Bank of New York, so it's not surprising he thinks the Fed deserves even more power. On the other hand Summers, who was Bill Clinton's Treasury Secretary, may want to make up for past sins. He has been the beneficiary of largesse from some of the very Wall Street firms at the heart of the current financial mess. According to disclosure forms he filed when he joined the administration, as reported in Salon magazine, Summers earned more than $2.7 million in speaking fees in 2008 alone from Goldman Sachs, Merrill Lynch, Lehman Brothers, Citigroup, and other troubled firms.
If the administration gets its way, the Fed will have greatly expanded authority to decide which institutions it would regulate. This week, even the plan's authors seemed unsure which institutions would come under greater scrutiny and oversight, with Geithner claiming the plan wouldn't regulate hedge funds and Summers saying it was too early to tell. But the administration's "blueprint" for reform lays out broad criteria that include an institution's size, leverage, and reliance on short-term funding; its role as a source of liquidity for the financial system; the impact a potential collapse might have on the financial system; and whether the institution was a source of credit to homeowners, businesses, and governments.
The definitions provided by the administration are so broad they could include not just institutions like insurance giant American International Group, the investment firm Goldman Sachs, and other firms whose near collapse last year precipitated the financial crisis but virtually any large institution whose business model includes providing financing to just about anyone.
The public is growing increasingly skeptical, however, whether the Obama administration's far-reaching intrusion into the private sector is a good idea. The latest Wall Street Journal poll shows nearly 70 percent of Americans have reservations about the government's recent interventions in the economy, and President Obama's approval ratings have fallen. Overall, he's slipped from a 61 percent approval rating in April to a 56 percent rating now, and a bare majority of Americans, 51 percent, now approve of his handling of the economy.
Poll numbers like these may explain why the president's plan has already drawn fire from Democrats like Dodd as well as Republicans. Congress may yet put the brakes on the Obama plan. If not, the Federal Reserve's growing tentacles could end up strangling the U.S. economy in the name of protecting it.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
JWR contributor Linda Chavez is President of the Center for Equal Opportunity. Her latest book is "Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics". (Click HERE to purchase. Sales help fund JWR.)
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© 2006, Creators Syndicate
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