Vern McKinley, author of “Financing Failure” appears in this Segment 1 of a 9 segment interview from the Full Disclosure Network® Special Series on the Federal Reserve System. McKinley served as Policy Advisor to Central Banking Officials and foreign governments describes his experience working for the Federal Reserve System and Resolution Trust Corporation. He also relates how the government shut down the Savings and Loan Companies and hundreds of them were eventually re-opened back into the private sector. He blames the government for initiating problems where the Federal Reserve did not do their job, or even a good job of overseeing the economy and keeping the monetary policy steady. He cites the periods from the depression and into the late 70’s and 80’s that led to the failure of the Savings and Loans. He covers the early 1990’s till now where the home ownership was pushed and led to foreclosures. He says the Bush and Clinton policies pushed Fannie Mae and Freddie Mac to boost homeownership. The Federal Reserve led this by easing monetary policy leading to encouraging people to take on (questionable) mortgages.
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