Power tends to corrupt and money is power. The ability to distribute vast amounts of wealth on behalf of the public is a rather significant responsibility.
Correct. A corrupt Fed would be bad news, although it would not take long for it to become obvious if it were.
I'm sorry but it cuts both ways. Whoever controls this money has significant power and influence. When they start handing out money in a manner that is outside of its normal operations it ought to raise suspicion and apparently it did just that (congress forced the Fed to reveal who the payments were going to.)
Right. But let's not pretend congress's actions were related to this specific program. Some are lunatics like Ron Paul, others want more power for themselves. Paul has been introducing this for years and has little trouble getting a lot of support, especially in the House, just not quite enough to pass it. But this has been being debated annually, long before the housing meltdown.
And the congress has always had significant oversight of the Fed, just not enough for Paul and his ilk's liking.
But none of this addresses the salient points I raised.
What specifically would you like addressed?