Loopholes That Stimulate the Economy?

As I have written in my last blog entry, Occupy Wall Street stands behind the corruption of the Federal Reserve and as recent news has shown, the General Electric bailout has exposed Federal Reserve loopholes. Although reports uncover this “corruption,” the bailouts administered, while behind-the-scenes, are fundamental in our economy but problematic in accordance to what’s "fair."
                                                                                                                                                                        

According to the U.S. Constitution, Article 1, Section 8, initially Congress was in charge of minting money and regulating its value. In 1913, Congress passed the Federal Reserve Act, giving their power to a system which, according to some protesters, has failed us. In this Act, the purpose was to resolve inelastic currency yet the Federal Reserves’ nepotic practices has put our money into the hands of private sectors.

For example, General Electric has recently been bailed out of a financial crisis with the help of the Federal Reserve.  At first, the company did not qualify to receive a loan but by owning two small banks in Utah, was administered the emergency loan. By this, GE was able to commerce and  receive help through their banks. Not only that, the CEO of GE happened to be on the board of the Federal Reserve Bank of New York before resigning in April. 

With loopholes aside, I argue that the General Electric Company is an asset to our nation and the bailout, although sneaky, is necessary to stimulate our economy. It is in fact, one of the largest industrial companies out there. Not only that, they have many ties around the world, they create jobs, and provide innovations to better our lives. From the light bulb to home appliances, we have General Electric to thank.

I suppose, when it comes down to it, the people are ultimately questioning what’s “fair.” By allowing GE to slip under regulation, where does that put other commercial companies? Obama has stepped in and has proposed a regulatory system, separating bank and commerce. In the beginning, Congress was in charge before the Federal Reserve Act was established. With the White House intervention,  maybe a “fair” deal will come out of this but, for me, I hope Americans can take in the whole picture, our economy, and the ways we must survive together.