Federal Reserve

NY Fed Rewards Half-Truths


Last week the Federal Reserve Bank of New York named the winners in its Financial Awareness Video Festivals. The winning videos were both vague and succinct. None of the videos made any mention of the role of government in financial decision-making.

Mrs. Moneybags
Credit: Newtown Free Library/Foter

The annual contest is run in the tri-state area of New York/New Jersey/Connecticut and in Puerto Rico. The tri-state winners are students from LaGuardia Community College, whose video "Repair your credit—Repair your life" aimed to remind young people that good credit allows for people to take advantage of opportunities they wouldn't otherwise have.

Irony doesn't even begin to describe the Fed's involvement in any effort to inspire, encourage, or reward financial responsiblility.

As individuals when we experience a drop in our credit score we figure out why it happened and remedy the issue in an effort to restore the faith financial institutions have to lend to us. Why then, is the government not doing the same thing?

Instead our credit rating has been demoted twice, the bonds held by the lender of last resort are no longer looked at as a financial safety net, and the regional banks are just standing there.

But this is no surprise, during the Great Depression the Fed stood by and watched as banks were unable to accommodate large bank runsproving its inability to perform its sole task.

The idea that this institution can accurately judge what it means to be financially responsible was not depicted in the winning video or by any of the finalists. If no one brought this up, how helpful are these videos?

The video ended with a young man trading his chefs hat for a blazer and saying "It's worth it in the end because new doors opened up and new opportunities come along," but imagine if instead he said, "Ending the Fed is worth it in the end, we'll know what our time and money are really worth."

Individual responsibility is important, but the Fed recognizing only those who tell part of the story by just advocating for greater personal responsibility, and not leading by example, sends the wrong message.

NEXT: Local Legislator Fighting Attempts to Legalize Marijuana in Idaho

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. That’s one way of selling underwear! French lingerie brand Valege launches ad campaign featuring bouncing BOOBS

    Read more: http://www.dailymail.co.uk/fem…..z2LTGobkeS

  2. Senator Fathers Child With Daughter Of Another Senator
    Former Sen. Pete Domenici of New Mexico fathered a son outside of his marriage more than 30 years ago with the then-24-year-old daughter of a Senate colleague, the retired Republican has acknowledged.

    The revelation stunned many who know the state’s longest-serving senator as a family man who advocated honesty.

    Domenici and Michelle Laxalt sent statements to the Albuquerque Journal identifying their son as Nevada attorney Adam Paul Laxalt. They said they decided to go public with their decades-old secret because they believed someone was about to reveal the information in an attempt to smear Domenici.

    “I deeply regret this and am very sorry for my behavior,” Domenici, 80, said in his statement, published in the Journal’s Wednesday editions. “I hope New Mexicans will view that my accomplishments for my beloved state outweigh my personal transgression.”

    Domenici and Michelle Laxalt agreed to keep his fatherhood secret because he and her father, Paul Laxalt of Nevada, were senators at the time she gave birth….

    1. I’m having trouble seeing why I should care about this.

      1. He’s a Rethuglican! This is an outrage! Just more proof that Rethuglicans are a bunch of immoral liars and cheaters! Why didn’t we know this while he was in office so he could have been thrown out! Outrage! Outrage!

        1. C’mon sarcasmic…you make it sound like he was having sex with underage Dominican hookers or something.

      2. Me too. He banged a 24 year old family friend. Their child turned out to be a fairly successful lawyer. What’s the big deal? This is a matter between the families, and none of our business.

        Here’s the love child’s bio:

  3. I think the Fed stood by and watched during the Great Depression not because they couldn’t stop it, but because they didn’t want to stop it.

  4. Wait a minute, so now we WANT the Fed to intervene in the economy by dumping liquidity into the system? Forget that. We would have been fine after a year or so if it hadn’t been for the Smoot Hawley tariff and Hoover’s economic interventionism.

    1. straw man – check

      Waiting for the goal posts to be moved.

  5. As individuals when we experience a drop in our credit score we figure out why it happened and remedy the issue in an effort to restore the faith financial institutions have to lend to us. Why then, is the government not doing the same thing?

    Because a government budget isn’t like a household budget.

    A government can print money.

    A government carries assault weapons with no magazine capacity and can come get more money any time it wants.

Please to post comments

Comments are closed.