Yes, the Fed actively blew a credit bubble under AG. There
is a distinction between crime and being clueless. AG,
as early Austrian school economist, belongs
to the former category, while Ben IMHO to the latter. There
was a bundle of clueless economists during the Great Depression,
so this is not a new thing. Like I said, the whole bunch of
economists elaborate on their data and vote under Ben, while
AG arrived with a piece of paper, decision written. He
ran the Fed as a dictator. Which one was a criminal?
AG, an Austrian economist, was also not clueless about what he
was doing. At least, I believe so. Stock markets discounted
rate decisions 1 day prior to the event, which smells of
a leak and front running. Under Ben they react
to it. We can't just lynch everyone cause things are bad,
although it would be nice to have someone less clueless run
the Fed. Unfortunately, if we lynch Ben, Kohn will replace him,
and it will make no difference whatsoever. -
That's really how the Fed is run, so imagination that
they do some criminal stuff are probably overblown.
A bunch of economists look at a bunch of data, then vote
on interest rates. When the financial system that they are
responsible for detonates, they panic. -g- |
