Grading The Fed

" The Obama administration wants to give the Federal Reserve Bank more power but our next guest says the head. Is doing a terrible job he wrote an opinion piece in The Wall Street Journal yesterday -- says quiet. -- the Fed's responsibilities won't help instead we should think of how best to use mental and over extended said. -- Hummer that day visiting scholar at Harvard university's Kennedy school of government and all third of the venturesome economy. A Mercury vehicles to her being here. And do you have. A fascinating Op Ed piece we were all talking about it yesterday you raise a lot of very large concerns. What is the principal reason why do you believe we need to have a debate in this country. As to what the role of the Federal Reserve Bank should be."

" We've had a catastrophic failure of the financial system. I don't know how much less. Things would have had to be the big initiative that regulation system faith faith comprehensively. And then they have to look at the wide fit and I don't think it's that goes with people incompetent all. Badly needed incentivized I think that the host system is under Indian out of control and it's grown like top -- I'm just as we had a problem on the private side of the financial system that. Countries like. City -- that the way too complex to monitor people running it had no idea what is going on. The Fed itself has also become too complex to -- people who presided over maybe they they -- it but I don't think there's anybody who could. No Hilemon who could actually run the range of activities it's that that's supposed to befall. Income that helps you mean on the one side it's as if it felt like a combination of George Soros and a brokered stuff. To the judge her aside if that is. Other people who make monetary policy decisions -- as we sit through five months they need to decide whether to visibility into state ethics. And then there's this vast army of regulators to let the brokers. Quad but supposedly going into organizations and seeing whether they're being prudent -- not -- And just you wouldn't expect a seller has to be able to manage both hedge fund and brokerage house you can't expect one -- admonish both the monetary policy -- that's figure out what to do that and -- regulation aspects and and the regulatory aspects now. -- mind boggling need advice from the one side than looking at whether credit gods have. I disclosing information properly you have the smaller. Banks discriminating in neighborhoods. Community reinvestment act. And then on the other said the world's is supposed to regulate these mammoth and complex organizations that JPMorgan city -- and and oh. I don't. And -- Goldman Sachs."

" Well let me campaign for second because you do a very good job explaining how that it happened how that is involved over time it almost feels as though. Every actor law that we put in place the Fed has been the de facto. Responsibility. To have been given the responsibility but I have a question for you something don't mention in here. Don't mention it would -- of glass Steagall. And I'm so curious as to whether or not you feel in some ways that -- contributed. To the nightmare that is trying to figure this whole financial system that."

" Allotment of an article about that. Glass Steagall was effectively repeal -- 1990. And it is true via via -- it -- killed by a thousand cuts. Anthony Fisher beer have glass Steagall when it happened in 1990 and assemblies have icing on the cake. Long before on. And in fact I'm 1999 did most of the distinctions of -- gone. My in 1990 all the big banks have become huge peasant leader of the position they couldn't manage -- couldn't. Good to oversee. So yes it sort of easy -- just probably a terrible mistake for the mistakes go back decades before us. A -- with Lou Lou we had. This combination of people keeping on. Throwing -- responsibilities on the -- state. 102 knows these huge institutions have become bigger and better and and incapable of being managed and incapable of being regulated. And the if this is the time this is it time to break a book the big. Financial institutions and to break up the fact that we've been prosperous because smaller number of focused and -- and let's get back. Focus and to -- the right -- and make it interest."

" Among women have about thirty seconds here you had said that we had been successful in this country despite. The financial regulatory environment. Do you propose and that if we have this conversation for quite sometime it's going to take us a long time to recover."

" I've I've said that we have certain -- but not just in spite of about regulation diamond bit prospect inspect. -- financial system. But the underpinnings of our innovative economy out of anxious and that's I entrepreneurship. I extremely sound. Suzanne this week -- of this mess and we do it -- can we do it. But. -- okay. I'm very optimistic about the long I mean that a vehicle in the next six months and the next guests -- Nobody can denoting right make that go go faster snow will what we need to do is to focus on the big picture. And what we -- would be what we need to install. They're really economy to have. For the normal."

" All right well I'm of the day I want to thank you so much -- very very interesting Op Ed and it's causing people talk which is good we should discuss this we appreciate you joining us. Then just to be have been given a."