Today in a confirmation hearing for Fed Chairman Ben Bernanke, Senator Bunning laid out the Federal Reserve’s failures in no uncertain terms, pointing out that the Fed drowned out warnings of the impending financial crisis with false assurances of stability, and created moral hazard. Senator Bunning stated:
“You have decided that just about every large bank, investment bank, insurance company, and even some industrial companies are too big to fail. Rather than making management, shareholders, and debt holders feel the consequences of their risk-taking, you bailed them out. In short, you are the definition of moral hazard.”
Senator Bunning has been a courageous opponent of Federal Reserve policies which lack transparency and have long served political interests at the expense of destroying our nation’s economic health - all protected by the veil of secrecy which the Fed is fighting desperately to maintain.
Dr. Paul applauds Senator Bunning’s criticism of the Fed throughout the years, and looks forward to carrying on his legacy of tenaciously defending Kentucky’s interests from an out of control central bank.
Watch Senator Bunning’s full statement here.
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