8:43 am ET
Jul 16, 2013


For the Fed, Europe Represents the Road Not Taken

    • Why are there still 12 Federal Reserve banks? Why does each have at least a couple of branches? What do they do, now that the bulk of payments are processed privately? Does their "search for meaning" have anything to do with the Fed lobbying Congress to become financial regulator-in-chief? Why has the Fed created $2 trillion in excess reserves, many of which are held by branches of European banks that along with U.S. banks earn interest from sitting on them instead of lending them to anyone? Why is Fed using those reserves to "play banker"? Why don't WSJ reporters seek answers to such questions, inquiring (and paying) subscribers would like to know...

    • Its easy to look good when comparing with Europe. Compare with other downturns and the Fed and Congress look horrible.

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