Thursday, November 27, 2008

More MSM on the Fed

Gerald O'Driscoll, a former senior Fed official and very able economist, recently said it best: "The central bank is like an arsonist watching a fire he set, expressing amazement at how such an event could have happened. The Fed created a moral hazard by first, implicitly, then explicitly promising to bail investors out of risky commitments. Former Fed Chairman Alan Greenspan promised to 'mitigate the fallout' from asset deflation. How does a central bank do that? By reflating asset prices, or, as Greenspan euphemistically put it in his 1999 testimony, 'ease the transition to the next expansion.'"

The Fed: Solution or problem? by Richard Rahn

Tuesday, November 25, 2008

NPR Outs the Federal Reserve!

I am totally flabbergasted, NPR actually came right out and said the Fed just created $800 billion out of thin air. The threw in some fluff about them later taking it out of the economy later, in time to save the day, but I almost crashed my car when I heard that.

Ron Paul is still winning!

Go listen, especially at 3:32.

Here's the story. The have a link there to the audio.

This goes straight to the player at NPR and might not work.