(Part 3) Richard W. Fisher Speech: Historical Perspectives on the Current Financial Crisis
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I do appreciate the excellent comments about Smoot-Hawley and the Panic of 1873, but what is the Fed doing about the insane policies in re: Fannie and Freddie? They were created to increase liquidity in the New Deal fragmented markets and then, after reintegration, kept around to pump in liquidity until the market bubbled and burst.
I am aware the Fed is politically neutral (self-preservation), but we deserve answers from our central bank about how we got in this, and how we'll get out.
somercet1 2 years ago