Transparency is the foundation of a well-functioning banking system. It’s an issue that must be addressed on consistent basis, particularly now as we try to figure out what exactly went wrong in the market for asset-backed commercial paper and the entire financial system for that matter.
Allowing changes and extensive deregulation in fiscal policy to take place based on uncertain premises or unwarranted assumptions – is one thing, ignoring red flags ; is intentional. That’s why it is imperative at this point that we all do our part to eliminate government monetary policy confusion and make sure transparency, whether it is from the central bank or the Treasury Dept., is used only for clarification purposes not obscuring ones. After all these are public institutions funded by, and accountable to the taxpayer.
Mark Cuban said it best:
Without complete transparency, we will get from our government what we always get when it comes to finances, confusion.
Mr. Cuban has come up with a constructive idea. He announced in his Blog that is working with the folks at Sharesleuth.com to create Bailoutsleuth.com. A website dedicated to greater government transparency and focused toward keeping an eye on the taxpayer dollars.
Mr. Cuban points out that not even a week has gone by and the government is already being shady with our money. In the first contract handed out, in this case to Bank of NY Mellon Corp. (BK), the compensation section, notes Cuban, is blacked out clearly showing Treasury Department’s unwillingness to disclose the particulars of that contract. The question is: why the secrecy? Devoting entire speeches to transparency from authorities – is one thing, implementing it, is what really matters.
The point is – good quality information must not only be accurate, it must also be communicated clearly, simply and with no ‘black outs’, so that it won’t be misunderstood. It is time for our monetary policy makers to meet their obligations.