The Fed and the (Pathetic) Investment Banks

An interesting article here. The reason the Fed is leaving the fund rate so low is that they are trying to help the investment banks who greedily chased high returns that turned out to be high risk (now there's a shocker) get back on their feet by borrowing low and lending (to you and me) high. Whether or not inflation will abate as the recession gets worse is debatable. The important point is that if inflation is supposed to abate and doesn't, by the time the Fed gets around to responding, inflation will have run amuck and it will be too late to do anything.