Monday, December 24, 2007

Is Alan the Culprit?

Who or what caused the Mortgage Crisis? Alan Greenspan claims he should not be blamed! He tells us that "Bubbles can not be safely defused by monetary policy before the speculative fever breaks on its on." Of course Fed's flood of liquidity after 9-11 would have had nothing to do with the bubble's inflating in the first place, now would it have?

Those of us with the more mundane worry of whether the crisis will translate into a recession will be reassured The Wall Street Journal already has the remedy: use fiscal policy not monetary policy. The paper's editors believe the dollar's virtue can not take any more ease. Read its editorial, "False Savior."

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