What can the Federal Reserve do for small-to-medium-sized enterprises? For starters: the Fed can advocate, create and support programs that grant the nation's primary employers and job creators access to credit and capital--much in the same way the Fed is currently pouring its trillions into the minority employer: big business and big banks.
Leo Hindery is currently the Managing Partner of InterMedia Partners, a private equity firm. Basically that is market parlance for Wall Street investment. Hindery is part of the Wall Street money world that was not in line for federal subsidies. After a stint as CEO of Global Crossing, he is also the author of "It Takes a CEO: It's Time to Lead With Integrity." His real employment numbers are challenging the new and exposed Federal Reserve to lead with integrity.
How would the Fed lead with integrity? Two ways: Tell the truth about the dire state of U.S. unemployment and prioritize its mandate to maximize employment.
Why, you may wonder, would a corporate CEO and private equity investor care about job growth? In his words: "We are believers in a vibrant middle class, and growth from the bottom up."
What advice does he have for private sector firms that were bailed out by the Federal Reserve? Lend capital for job creation and do not "re-create the (same) trading model that brought us to our knees."
Recovery from the top down has been the Fed's operating strategy. The real reality is that this policy is an utter failure and will take years longer before it will affect any lasting change. In the meantime, high unemployment continues to challenge large portions of entrepreneurial America. If this issue is not addressed, the problems will become even more severe. The economic engine cannot reboot without jump-starting job creation.
The Fed is hoping that by the time the truth comes out, the "real recovery" will have taken hold. The theory seems to be that by telling us everything is getting better, it will magically happen. But as much as I believe we create our own reality, the current downturn proves we need help with this.
The Federal Reserve is failing in its fiduciary and official duty to stimulate "full employment." No amount of press conferences, fake reality TV or manipulated statistics will change that fact. If they don't change their tune soon and make "full employment" the priority over "inflation," it might be high time to get Reality King "the Donald" to tell the Fed: You're Fired!
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