All Commentary
Tuesday, October 11, 2011

Could This Time Have Been Different?

“If [the administration] had moved more quickly to appoint a director when it had firmer control of the Senate, it could perhaps have used Fannie and Freddie to kick off a giant wave of refinancing for underwater homeowners. That alone would have done something to ease the pressure on stressed households. . . .

There was, however, one institution that some think could have reduced the debt overhang crushing the economy and that didn’t face such political obstacles: the Federal Reserve.

The central bank manages the nation’s money supply and credit and sits at the center of its financial system. . . .

But perhaps the better approach is to look at the political factors that make them turn out the same, that stop governments from doing enough even when they have sworn to err on the side of doing too much.  (Washington Post)

And despite all this, government action is never even considered as one of the primary culprits?

FEE Timely Classic

The Depression You’ve Never Heard Of” by Robert P. Murphy

Financial Crises and the Federal Reserve’s Punchbowl” by Chidem Kurdas