Wednesday, January 16, 2008

Fed Monetary Policy: Inaction Is Killing the Credit Market

Here's a great article about Fed expert, Anna Schwartz, and how the Fed screwed the economy in the '30s and seems to be repeating their mistakes again. She says we're not headed for a depression, but she does caution that the Fed got us into this mess (Credit Crunch, Mortgage Meltdown) by keeping the Fed Funds rate at 1% far too long, which encouraged speculation (why not? borrow long term money for short term profit?)...

Great summary on the causes of the Great Depression, too.

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