Tuesday, May 24, 2011
Hoenig Made An Important Speech Today
The proposal by Hoenig, 64, the longest-serving current Fed policy maker, is in line with his previous calls for the breakup of large financial firms and for tougher bank regulations than officials such as Chairman Ben S. Bernanke have publicly supported. Hoenig, who retires Oct. 1, said last month that international capital requirements are too lax to prevent another U.S. banking crisis.Haha! They did not report the rest of his comment, because it was uttered in a mysterious banking dialect.
Asked by an audience member why his views were in the minority at the central bank, Hoenig said that it’s “hard to know” and that his outlook is shaped by his experiences over three decades and multiple banking crises.
Ifway eythay ewknay omethingsay aboutway ankingbay, ey'dthay owknay omethingsay aboutway iskray. Iway avehay onay ideaway ywhay urportedpay inancialfay expertsway ouldway inkthay ouyay ouldcay urecay ethay amageday oneday ybay away assivemay ubblebay ybay yingtray otay eatecray away ewnay oneway.Unfortunately, Hoenig will retire this year. Here's the type of contrarian voice he's been.
get paid. If he truly felt that the Fed's policies were
leading us to ruin, and I think he did, he should have resigned in protest. Too many people in power
will go along to get along.
Hoenig knows the powers that be will let him retire, as long as he's not too impolitic. But he can't quite stifle the urge to call them on it.
You two are entitled to your opinion, but I am glad he was the voice of no. I am glad that voice was represented. This year he doesn't get to vote, but at least last year someone was arguing from experience rather than hope.
As a general rule, I don't think that people should resign from voting positions just because they are outvoted. Following that rule would lead to a total lack of debate.
The fewer dissenters in public life, the more the remaining dissenters look like crackpots.
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