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That’s not so. At least it’s not necessarily so. The Federal Reserve Bank is governed by a committee of people appointed by the president (with consent of the Senate) to non-renewable 14 year terms. (So it’s highly unlikely that all of them would ever have been appointed by the same president.) It is funded by private banks, which are required by law to invest in it, but it is Not run by them.

The policies this nation, both politically and economically, have followed for the past 40+ years, could have had no different result.

The tech bubble could only be predicted in that a sector to create a bubble had to be found. It just so happened a few years earlier, a few kids in a garage wrote software code that enabled small, affordable machines to increase the productivity of the white collar worker. With creation of financing (debt), these new machines could be offered to the average consumer. From there it took off.

When saturation was reached, the effectiveness of the financing (debt) used for expansion of product and services disappeared. No growth meant no new money for more expansion, without expansion, revenues would now rely on the return on principal, just like bonds. The feeding frenzy stopped, as money wanted and needed the quicker returns to keep Wall Street with equal levels of fees (profits). Thus, with lesser fees came lesser profits, and with lesser profits came lesser value to stock price.

Pretty simple. Lesson learned? uh, no.

So, as a replacement, in Jan. 2001, the Fed dropped interest rates. This started, purposely, another bubble.

Wall Street, having learned a little, knew this would end one day. Here’s the point: They willfully created risky, speculative, securitized creative financial vehicles to generate fees, in a ‘get as much as you can before it blows’ mentality.

When the inflow of loans to securitize did not meet the demand THEY created for these financial vehicles, they encouraged lowering, and subsequently elimination, of sound loan guidelines.

This, in turn, encouraged a culture of similar attitude involving everyone in the real estate market. From real estate agents, to originators, to underwriters to title companies.

Not every single person in this arena happily participated. There are many who tried to blow whistles. They usually were fired or told to shut up or be fired, or were denied referrals.

But these people were the exceptions to the rule. Most people just turned a blind eye, believing they had the right to make the money too. It didn’t matter if the system was being put at risk due to loans being given people who might not be able to pay them back. The moral breakdown was blatant, widespread and pervasive. It was a get as much as you can mentality.

The question I can’t shake - A radical change is coming for how America is governed. In 50 years will we be one North American government with the Amero, or is there enough foment to have a “tea party’ and all that follows?

The Fed can do whatever they want and the tax paying fools don’t even have a clue on how they screw us all.

We’ve been printing money ever since. And when that wasn’t enough we sold our manufacturing base to raise even more capital.

Regulation wouldn’t have prevented the housing crisis. This game was over at least by the ‘97 asian contagion, or was it LTCM?, or Y2k, or the tech crash? Some say its been a house of cards since the ‘87 crash.

We all lived a life style built on a lie. But you can only lie for so long until your luck runs out. Lolz at regulation being the problem.