Kass: Is the Fed Overreaching?
At end of day, isn't domestic monetary policy in response to external fiscal and other problems not only doomed to failure but doesn't it also increase mid- to longer-term risks in our economy?
Isn't the U.S. economy meant to have business cycles that trend down as well as up? And why is natural price discovery such a bad thing?
Why, all of the sudden, does it seem to be the case that a recession is not allowed by our monetary authorities? Does "too big to fail" embrace a much broader definition that just banks?
Capitalism should hold rewards and risks. Isn't this the nature of our system?