But they that wait upon the Lord shall renew their strength. They shall mount up with wings as eagles. They shall run and not be weary. They shall walk and not faint. Isaiah 40.31
I've been reading some very compelling evidence by Milton Friedman that the Federal Reserve's mismanagement of their role in late 1929 through early 1931 contributed significantly to the Great Depression. I wonder how the FR's current handling of interest rates will be seen by future generations...
I've been reading some very compelling evidence by Milton Friedman that the Federal Reserve's mismanagement of their role in late 1929 through early 1931 contributed significantly to the Great Depression. I wonder how the FR's current handling of interest rates will be seen by future generations...
My own opinion is that it will be seen as a disaster. If you study the history of financial manias, anything the powers that be try and do to "fix" the problem, inevitably make it worse. Greenspan's reaction in 2000 delayed the problem while making it worse and creating a moral hazard. Bernanke is trying to do the same thing and he will be spectacularly unsuccessful. Go to google books and search for the book "Fiat Money in France." We've tried the Bernanke/Greenspan approach before and it was a disaster.
3 comments:
I've been reading some very compelling evidence by Milton Friedman that the Federal Reserve's mismanagement of their role in late 1929 through early 1931 contributed significantly to the Great Depression. I wonder how the FR's current handling of interest rates will be seen by future generations...
I've been reading some very compelling evidence by Milton Friedman that the Federal Reserve's mismanagement of their role in late 1929 through early 1931 contributed significantly to the Great Depression. I wonder how the FR's current handling of interest rates will be seen by future generations...
My own opinion is that it will be seen as a disaster. If you study the history of financial manias, anything the powers that be try and do to "fix" the problem, inevitably make it worse. Greenspan's reaction in 2000 delayed the problem while making it worse and creating a moral hazard. Bernanke is trying to do the same thing and he will be spectacularly unsuccessful. Go to google books and search for the book "Fiat Money in France." We've tried the Bernanke/Greenspan approach before and it was a disaster.
Post a Comment