The Federal Reserve - Assignment Example

The overwhelming mortgages did not directly impact the Federal Reserve but through independent investment companies, which really demonstrates how the American economy is almost entirely fed from the financial industry. The first point that I would like to raise is that the financial industry has already imprisoned our government in that there are apparent attempts of making the people believe that the financial crash was only a result of incompetence rather than a “contrived” or “deliberately-planned” crash.

I think there is more of a fiscal policy involvement in this case: the Federal Government had the intention to bail out the projected failing companies such as the Bear Stearns. For instance, the former Federal Reserve Chairman, Ben Bernanke, devised a merger between the Bear Stearns and the JP Morgan, which would allow the Federal Government to shell out $30 billion in order to cover up the dubious assets associated with toxic mortgages. This implies a relative more expansionary policy strategy by the government.

I think one of the most important lessons that I learned from watching the video is how the finance industry has dominantly gained control over our government. Aside from the hints that the economic crash was “contrived”, the video reveals some of the most undesirable realities of the United States: The country’s goals toward recovery will fall short except if we get rid of the financial oligarchy that is hindering the fundamental reform.