You had to see this coming. The U.S. Federal Reserve is now being subjected to cries for transparency that it has said are necessary for the financial institutions it regulates. The campaign is being spearheaded by Florida Democratic Congressman Alan Grayson. Believe it or not, no one currently audits the Federal Reserve's accounts. And some skeptics have come to think that the Federal Reserve's fiscal house is not in order and that the Fed has actually not been able to balance its books and account for all the assets it has purchased. Zero Hedge claims the Fed cannot account for nearly $9 trillion in off-balance sheet transactions.
That's pretty scary. In response, some leading lights (including my favorite, ZH) of the econoblogosphere and media are circulating a petition demanding that the Federal Reserve be subject to regular audits by the GAO. It's about time, frankly. Some that have have signed up and are pushing the petition include:
- Michael Greenberger, Law School Professor and Director of the Center for Health and Homeland Security at the University of Maryland
- James I. Sturgeon, Professor & Department Chair of Economics. University of Missouri-Kansas City
- Michael Froomkin, blogger and Professor of Law, University of Miami School of Law
- John Amato, founder, Crooks & Liars
- Cenk Uygur, host of The Young Turks
Alex Salkever is Director of Research at Piqqem.com, a stock prediction community and analysis tool powered by the Wisdom of Crowds.