Signs suggest improper influence of Bush on Fed

[Robbien]

University lecturer finds dramatic increase in meetings between president, Greenspan

FINANCE

BY FRANK NORRIS
Of The Post and Courier Staff

There is a growing danger that financial markets could perceive the Bush administration as unduly influencing the direction of federal monetary policy. So says Kenneth Thomas, a lecturer in finance at the University of Pennsylvania's Wharton School of Business.

According to Thomas, there's been a dramatic increase in the number of meetings between Federal Reserve Chairman Alan Greenspan and White House staff since President Bush took office in January 2001.

Thomas based his conclusions on Freedom of Information Act requests for Fed data over the past six years, tracking the number of meetings between Greenspan and White House staff during that period.

He found that from 2001-03, Bush's first three years in office, there was a 67 percent jump in the number of Greenspan-White House meetings compared with the three years from 1996-98. The FOIA queries showed Greenspan had 55 White House meetings in 2002 and 68 in 2003, up from about 12 per year between 1996 and 2000.

http://www.charleston.net/stories/050304/bus_03finance.shtml

[aquart]

1. Surprise. Greenspan is a whore.

And Bush is a john.

[Coventina]

2. I'm SHOCKED! Shocked I tell ya!

:eyes:

[Maeve]

23. Yeah, time to round up the usual suspects

Casablanca means "White House", right?

[gandalf]

3. Again an annoying conspiracy theory!

Bush only wants the best for the country.

[Selteri]

5. Maybe Bush wants what is BEST for the country

If that is the case though, he's an even bigger idiot for it.

[Name removed]

19. Deleted message

Message removed by moderator. Click here to review the message board rules.

[swinney]

4. Greenspan--13 Interest Rate Hikes for Clinton then down down down

Greenspan is a Republican 100%.

He tinkered with upping interest rates during two elections under Clinton.

This man is no good for America. Bad Boy.Bad Man.

[webtrainer]

6. and when rates finally go up . . .

:nuke:

[indepat]

24. Things financial are going to blow sky high?

[Jeff in Cincinnati]

8. I remember that

All the hand-wringing Greenspan did about the "spectre" of inflation from an overheating economy during the Clinton Administration. Greenspan did his damnedest to snuff the recovery by jacking up interest rates at every opportunity.

[sybylla]

17. I'm not sure that's a fair charge

Interest rates went up in both election years for Reagan and both for George I.

I used to work in the banking business in the 80's and everyone said the interest rates always went up in an election year. Of course, back then, more people had their investments in bank accounts instead of the stock market so it was the equivalent of lower gas prices. All of it is intended to placate the ignorant masses so they vote for incumbancy.

[Yavin4]

20. Wrong. Wrong. Wrong. Here's Proof

Scroll down the page and look at the Fed's interest rates moves over the last ten years. Look at the data yourself and you tell me that Greenspan is not politicizing monetary policy in favor of Bush:

http://www.federalreserve.gov/fomc/fundsrate.htm

[sybylla]

22. Look, I cited interest rate changes more than 10 years old

The point I was making is that rate changes have been a part of election year politics for decades and everyone in the banking industry in Madison Wisconsin knew it. When the biggest, as in most popular, investment vehicle was a bank account and very few people carried much debt, slow-growing interest rates were viewed by the general public as a good thing for our economy.

Obviously that changed during the Clinton administration with the growing emphasis on investments in the stock market and the ballooning debt of the average citizen.

I wasn't arguing that Greenspan is a whore. My arguement is that you can't base that opinion on election year fluctuations since they have been going on for some time and under other fed chairmen.

[indepat]

25. If Greenspan's going to get in 13 interest rate hikes before the fall

election, he had better better get started!

[displacedtexan]

7. and then Mr. G suggests dumping fixed rate for variable mortgages...

What a total repuke whore thing to do to people.

[htuttle]

9. Corrupt financial system

Corrupt government, corrupt military, corrupt media, corrupt religions,

A corrupt people?

Welcome to the United States of America.

[Bandit]

15. Captured in a nutshell

Welcome to America where the Mafia is seen as heroic.

[swinney]

10. Warren Buffett to join Kerry as Econ. adviser wow!

He and Bill Gates were against Bush tax cuts saying "they are the wrong priority for America".

[central scrutinizer]

11. This guy is a lecturer in finance?

"He found that from 2001-03, Bush's first three years in office, there was a 67 percent jump in the number of Greenspan-White House meetings compared with the three years from 1996-98. The FOIA queries showed Greenspan had 55 White House meetings in 2002 and 68 in 2003, up from about 12 per year between 1996 and 2000."

I would expect my algebra I students to be better with percentages than this guy - 55 meetings in 2002 is a 458% jump over 12 meetings and 68 meetings is a 567% jump.

[hedda_foil]

13. That looks like a reportorial goofup to me.

67% vs 567% ... either accidentally or on purpose, the reporter or editor left out the hundreds column.

[Robbien]

14. It may be he is comparing visits with Presidents only

Cheney is the first VP who has a strong leadership position and many of those Greenspan-White House meetings were with him.

Bush probably slept through most of the meetings since he has often said financial talk bores him.

[swinney]

12. Mrs. Greenspan=Andrea Mitchell two alikes

Andrea showed her true partisan colors on the Trashing of the White House and Air Force I.

Recall the great tirade she made over a non-flap. She demeaned the Clintons unbelievably.

She is a Republican partisan.

[liarliartieonfire]

16. Will President Kerry replace Greenspan with Buffet?

Maybe its time for Greenspan to retire.

Would Buffet take the job if offered?

[Justice]

18. Buffet - Very Intriguing Idea

I like that suggestion!

[Yavin4]

21. Markets Would Freak Out Over Buffet

He's too honest, and he's too rich to be bought off. He'll actually run the Fed to benefit all Americans instead of the wealthy few, and we can't have that in government.

[Robbien]

26. Yes. Most of the money movers in the market are used to BushCo

There would be a big shake up during the learning curve to a completely different policy which is not based on lies, conceit and greed.