Good article on our current economic state, and where we're going.

This isn't a news source. This is directly from the Chairman of the Federal Reserve of San Fran.

Originally Posted by CollinsE90

This isn't a news source. This is directly from the Chairman of the Federal Reserve of San Fran.

Which is an office of the government who controls the news. All the same.

Originally Posted by GRIFFIN

Which is an office of the government who controls the news. All the same.

The Fed isn't an office of the government. You can say all you want that they're in bed, but reflexively dismissing it based on that single idea, well, I would imagine you miss a lot of things, lol.

Originally Posted by evolved

The Fed isn't an office of the government. You can say all you want that they're in bed, but reflexively dismissing it based on that single idea, well, I would imagine you miss a lot of things, lol.

The Federal Reserve system was designed to be independent to limit political influence on monetary policy

Controlling the system and monetary policy in the U.S. is the responsibility of the Board of Governors of the Federal Reserve. Each member of the Board of Governors is selected by a President and confirmed by the Senate to serve 14 year terms. Twice a year, the Chairman of the Board of Governors must report to Congress and one of those times he presents an annual report that includes independently audited financial statements of the entire system. The Board of Governors is a 100% government agency.

The President also chooses who will be the Chairman and Vice Chairman of the Board of Governors. Members of the Board of Governors are not allowed to hold any office, position, or employment in any member bank. It is the primary responsibility of the Board of Governors to set monetary policy.

In addition to monetary policy responsibilities, the Federal Reserve Board has regulatory and supervisory responsibilities over banks that are members of the System, bank holding companies, international banking facilities in the United States, Edge Act and agreement corporations, foreign activities of member banks, and the U.S. activities of foreign-owned banks. The Board also sets margin requirements, which limit the use of credit for purchasing or carrying securities.

Beneath the Board of Governors, there are 12 Federal Reserve district banks. These are setup similar to corporations, but there are differences that make them sort of a hybrid between private ownership and a federal instrumentality. National banks that are located within a Federal Reserve district are required by law to subscribe to stock in a district bank. The amount of stock each member bank is to subscribe to is set by law to a certain percentage of their paid-in capital. Where a normal corporation has to follow certain procedures to issue shares of stock, the Federal Reserve district banks can issue additional stock whenever a member bank's capital increases or a new national bank is chartered. A state bank may subscribe to the stock if the state bank meets certain requirements. The stock can be thought of as representing a bank's membership in the Federal Reserve system.

Each share of stock has a set par value and that does not change. Each member bank pays the par value for the Federal Reserve district bank stock. The stock of a Federal Reserve bank does not confer any rights of ownership in the bank. The only benefits of the stock are: 1) pays a 6% dividend; and 2) each member bank has ONE vote for the district bank's board of directors. The dividend is to recompense the bank for the loss of use of it's capital. Each member bank gets one vote for six seats on the board of directors regardless of the number of shares that it holds. The other three seats on each bank's board of directors are selected by the Board of Governors. The Chairman and Vice Chairman of these boards of directors are selected by the Board of Governors.

If a Federal Reserve bank were to be dissolved, the member banks would be paid back the amount they paid for the stock plus any unpaid dividend regardless of the value of the Federal Reserve bank. All assets and liabilities would then become the responsibility and property of the U.S. Government. This is significantly different than a private corporation. If a private corporation dissolves, excess assets are distributed to the stockholders.

The Federal Reserve system is also "non-profit". Once expenses have been paid and the set dividend has been paid to the member banks, net earnings are paid to the U.S. Treasury.

Regardless of political agenda, this was written by a Ph. D in Economics from Stanford. Not some liberal arts major quoting the aforementioned person.

Originally Posted by CollinsE90

Regardless of political agenda, this was written by a Ph. D in Economics from Stanford. Not some liberal arts major quoting the aforementioned person.

says the bartender.


I don't care if he is a phd or a fry cook from mcdonalds. Our economy is in the sh1tter and will be for some time.

Senior Economics Major

Your inability to spell devalued your opinion on the first page

Originally Posted by CollinsE90

Senior Economics Major

Your inability to spell devalued your opinion on the first page

Spelling does not devalue my opinion. I wish you well in your life wearing blinders.

Once you experience real life give me a call sometime I will buy you a beer and we can talk.

You're digressing because you don't know enough to challenge a Ph.D in Economics by challenging me. Until you can do the former, your opinion is irrelevant and belongs on Fox News.

The dow will hit 16,000 this year. Real estate will be up 10% over all by the end of the year.


But I agree with Griffin, eventually we are all doomed. But the next couple years should be pretty good if you have money NOW. If you are some broke recent college grad you are screwed. But if you have 6 figures chilling to throw into something, the next few years will be pretty good.

Originally Posted by evolved

So, what are your feelings based on if you don't believe anything that you read from the media? What about from economists, or people within the industry?

Granted, I'm skeptical of any one, single news source but if you broaden the horizon it's possible to get a clear message.

I'm with Griff, read a lot, make your own opinions. Even someone within the industry can and will have slanted views. Case and point: The recent trillion dollar coin idea. Paul Krugman was all for it, but he's a lifetime academic and hardcore Keynesian, two things that don't hold as much water when it comes to decisions that will affect the working world. So while the media says things "nobel prize winning economists supports....", I still don't take their opinion to heart until I've done my own research.

Originally Posted by CollinsE90

Regardless of political agenda, this was written by a Ph. D in Economics from Stanford. Not some liberal arts major quoting the aforementioned person.

I don't disagree that there are grounds for what he said, and it is well reasoned and thought out.

However, have you not seen similar reports about another recession (or at the very least sluggish growth) written by other economists in the least few months? Surely you have, being an econ major.

I don't believe or disbelieve what he said. Neither this, nor the negative reports have convinced me either way.

The Economist itself predicted as much in the "World in 2013" issue.

Originally Posted by CollinsE90

You're digressing because you don't know enough to challenge a Ph.D in Economics by challenging me. Until you can do the former, your opinion is irrelevant and belongs on Fox News.

no becasue politics and religion and money are all things you don't about in public. The reasoning to that is no one can agree. It is a waste of time going around in circles and no resolution will come from it since everyone has their own opinion.

I am not a PHD nor do I wish to be they don't make enough money.
I have a PHD in business relations and a Masters in economics on my payroll.

And what does your research show?

Edit: to Cowmoo

Originally Posted by CollinsE90

And what does your research show?

Edit: to Cowmoo

In regards to what? The trillion dollar coin or the article?

Originally Posted by zhp43867

I don't disagree that there are grounds for what he said, and it is well reasoned and thought out.

However, have you not seen similar reports about another recession (or at the very least sluggish growth) written by other economists in the least few months? Surely you have, being an econ major.

I don't believe or disbelieve what he said. Neither this, nor the negative reports have convinced me either way.

The Economist itself predicted as much in the "World in 2013" issue.

His predictions are predictions, as are the other ones. Looking at the numbers, we're dropping in the right places, and increasing in the right ones. That was my point in the making of the thread, there are many variables that could change it, it's Economics.

Originally Posted by cowmoo32

In regards to what? The trillion dollar coin or the article?

In regards to where we're going.

And Cowmoo, it was written by the Chairman of the Fed Reserve of San Fran. Not really an "article."

With all sources.

Originally Posted by cowmoo32

I'm with Griff, read a lot, make your own opinions. Even someone within the industry can and will have slanted views. Case and point: The recent trillion dollar coin idea. Paul Krugman was all for it, but he's a lifetime academic and hardcore Keynesian, two things that don't hold as much water when it comes to decisions that will affect the working world. So while the media says things "nobel prize winning economists supports....", I still don't take their opinion to heart until I've done my own research.

I totally agree with getting multiple sources, trust me. With that said, my initial knee jerk reaction isn't disbelief to everything.

Originally Posted by GRIFFIN

The Federal Reserve system was designed to be independent to limit political influence on monetary policy

Controlling the system and monetary policy in the U.S. is the responsibility of the Board of Governors of the Federal Reserve. Each member of the Board of Governors is selected by a President and confirmed by the Senate to serve 14 year terms. Twice a year, the Chairman of the Board of Governors must report to Congress and one of those times he presents an annual report that includes independently audited financial statements of the entire system. The Board of Governors is a 100% government agency.

The President also chooses who will be the Chairman and Vice Chairman of the Board of Governors. Members of the Board of Governors are not allowed to hold any office, position, or employment in any member bank. It is the primary responsibility of the Board of Governors to set monetary policy.

snipped

It's still a private institution regardless of what part of the government appoints people. They are extremely closely related, but it's still a private institution.

Originally Posted by evolved

I totally agree with getting multiple sources, trust me. With that said, my initial knee jerk reaction isn't disbelief to everything.



It's still a private institution regardless of what part of the government appoints people. They are extremely closely related, but it's still a private institution.

you say tomato, I say tomato.