"The Fed has a lock on the economics world... There is no room for other views, which I guess is why economists got it so wrong."
"The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession...The Post, in a 3 February 2010 article titled, 'Has the New York Fed Been Serving the Public Trust? Has Geithner?' Joshua Rosner says:
This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists. In the Fed's thrall, the economists missed it, too."
"The New York Fed is not government-owned. Most people fail to recognize this fact...
The New York Fed is a shareholder-owned or private corporation... Historically, the New York Fed has been among the most profitable shareholder-owned corporations in the world. Yet it keeps the details of its shareholders' ownership information private. What we do know is that its owners include precisely those institutions it is tasked to regulate and supervise and those is has obviously failed to adequately supervise...
The New York Fed's concentration of the largest banks, coupled with its unique role of managing the market operations of the entire Fed system, has built a culture where it sees itself as a market participant and peer to those firms it regulates.
The President of the NY Fed is chosen by, paid by and reports to the private shareholders of that private institution. Only three of the nine Directors of the Board of the New York Fed are chosen by the Federal Reserve Board and, until this year, the NY Fed's Chair, chosen by the Federal Reserve Board in Washington, was a former Chairman of Goldman Sachs who still sits on Goldman's Board.
We do not know the full roster of shareholders, but the list of the NY Fed's Board and management group is particularly interesting, reading like a Who's Who of sell-side financial corporations that the taxpayer has bailed out and whose systemic riskiness Washington would rather take indirect and half measures to address rather than take a head-on approach of resolving...
Geithner's ineffectiveness in his role at NY Fed President and his current political posturing... seems to have resulted from design rather than accident. After all, in a previous 'public service' role, Geithner was the lead negotiator for the WTO's General Agreement on Tarrifs and Trade for financial services. In this role, Geithner reported to Larry Summers, who in turn reported to Secretary of Treasury Robert Rubin.
In 1998, this team won the banks EVERYTHING they requested from that treaty. From open access to new markets to unrestricted growth in equity and credit derivatives, they opened the door to rapid and deregulated growth of the large multinational banks, allowing them to become 'too big to fail'."
He, the aforementioned Larry Sumner, and Timothy Geithner, are Jewish. As are Alan Greenspan, the Chairman of the Fed Res from 1987 to 2006 and his successor Ben Bernanke.
Lloyd Blankfein, the current Chairman of Goldman Sachs, is also Jewish.
More on these top table financiers can be found here and here.