5 Reasons Why the Federal Reserve is a Failure!

Good Article from www.bankholic.com for all forex traders

No single quasi-private institution has as much influence on the worldwide economy as the Fed, and as a leader can head this institution for an indefinite term, no one man is as influential on the markets as the Fed Chair.
The Dollar has plummeted in the currency markets and shows few signs of recovery or even stabilization. The new style and policies that accompanied Bernanke into office have made the Forex markets more volatile than ever and even more difficult to predict. An examination of what has gone awry can help Forex traders understand this new era at the Fed.


1. The Fed ignored the signs

The Fed has stated that it will never act as a regulator in any financial market, but it has the duty to use its influence for reform when it sees signs of consumer exploitation. Since as early as 2001, at least two senior officials inside the Fed urged its board to call for tighter regulations in the housing markets, especially in abuses that were clearly evident in the handling subprime mortgages.

2. The Fed did too little too late

3. The Fed kept interest rates too low for too long

4. The Fed’s view of inflation is flawed

5. The Fed gives gold stars to those deserving detentions

original sources:http://www.bankaholic.com/2008/federal-reserve-is-failure/