(T)he Fed's printing press single handedly guaranteed the way of life for the UK, the Eurozone and Switzerland with unlimited funding! Whether the Fed was within its rights to bet the American way of life in order to mitigate the stupidity of Europe is a question best left to politicians. And politicians take note: the Fed's actions were to the benefit of "banks around the world including those that have no US subsidiaries or insufficient eligible collateral to borrow directly from the Federal Reserve System."I am not a Harvard Business School graduate, but I see the hazard with linking financial systems. Linking the national electrical grid into one network is a similar hazard. Theoretically the system should be more efficient and create new opportunities, but breakdowns occur (who knew?) that can bring down the whole thing.
Update: Thanks, Glenn.
3 comments:
Efficiency is the enemy of reliability.
Better is the enemy of
Good Enough.
"Whether the Fed was within its rights to bet the American way of life in order to mitigate the stupidity of Europe is a question best left to politicians."
I take extreme exception to this statement. It is, in fact, a question best left to the electorate. The idea that politicians are a select cadre of brahmin that know best is far too pervasive and passes far too often as ackowledged fact undeserving of comment. Yes, the electorate does not control the Fed, but we should control the politicans who have a sayin how the Fed operates.
"USA bails out the world" could be the headline to many many different posts. Once, just once, I'd like to see the headline "USA gets credit for bailing out the world."
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