Seablue, the smart people or the people that won't tow the line of what is politically expedient for the Fed to follow don't get promoted. In government the losers get the promotions. That's the way it works in government bureaucracies. Of course, we all know that's just the opposite of the way it should work.
To your point about the Banks being the problem, yes, they ARE the problem. The Banksters aren't elected Politicians, but they're just as corrupt. The Fed and the government collude together the screw the average person. Most people are too dumb to know it.