Mishkin is an idiot
I'm sorry, I can't make it any more plain than that. To argue that financial bubbles aren't dangerous, and that the Fed shouldn't try to combat them -- which is what ex-Fed governor Frederic Mishkin just did in the Financial Times -- is monumentally stupid. Can this guy be serious? Haven't we seen what a huge disaster the Fed's "Don't fight bubbles when they're inflating -- just 'mop up' when they pop" approach has been? I seriously hope sitting members of the Fed don't believe this claptrap.
posted by Mike Larson at
8:34 AM
2 Comments:
I agree but he is just trying to cover his butt from the biggest screw up the world has ever seen. He's following Greenspans playbook of it wasn't my fault. History will not be kind to those who sat and are sitting on the Fed board.
By
TomK, at November 10, 2009 at 11:31 AM
It is the gov't and the Fed that created the bubble in the first place, by lowering interest rates to riduculous lows, removing regulation for the 20% downpayment on homes, and allowing the GSEs to offer trillions in mortgages, securitized by the gov't.
Take these actions away, and there would never had been a bubble.
By
Anonymous, at November 10, 2009 at 4:43 PM
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