The Federal Reserve is in the business of central planning instead of central banking.
The Fed's assets have grown much faster than its capital.
The Federal Reserve is itself a highly leveraged financial institution.
The flagship branch of the 12-bank system, the Federal Reserve Bank of New York, shows assets of $1.3 trillion and capital of just $12.2 billion.
Its leverage ratio, a mere 0.9%, is less than one-third of that prescribed for banks in the private sector.
Monday, December 22, 2008
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