You have to understand the relationship between the banks and the Fed. The Fed was created in 1913 by the banks to police the banks. That's like a group of inmates choosing another group of inmates to be the guards of the prison. Greenspan and Clinton created the recent mess and Goldman and Co were good and long Oil when they announced the possibility of a super spike to $200. The reason they announced that is so they could exit their long position and get short against the general public. If you want a detailed answer to your question read "Web of Debt," by Ellen Brown or "The Creature from Jekyll Island," by Edward Griffin. Both books are heavily biased but they are excellent reads for anyone who is interested in the formation and operations of the Fed.