The Fed’s Flaws
A reader sent me this article listing “10 reasons to be critical of the Federal Reserve.” It provides a good analysis and explanation of our current economic downturn. I especially found number 10 to be relevant. I believe that most of these flaws are inherent in the system, rather than the result of poor decisions by the Fed chairman. The idea that a small organization like the Federal Reserve — as experienced as they may be — could predict and adapt to fluctuations in the market, better than the market itself, seems silly to me.
Bob Murphy attempts to explain the system and its flaws in this radio interview. It’s lengthy but fairly informative.
(Thanks to Amy Quinn for the article)