Caption: **OUCH** What's that headache I'm getting? Adam Smith just gave me the biggest slap in the history of Capitalism.I feel your pain Bernanke, but I don't understand you. Whatever happen to Laissez-Faire, free market economy and capitalism? Must we always try to intervene with the nature of the free market? The excess (of debt in general, subprime or not) was created by a low rate environment. So to fix it, shouldn't we do the opposite (raise rate)?
So you decided to lower the Fed fund rate just because the market was spooked for one day? Why can't you let the market work itself out? Isn't that the basic principle of the "free market" economy?
And why this doesn't feel like its the first time we have excess of capitalism injected in the economy and have it taken away by the central bank? See: Panic of 1907, Crash of 1929...etc
I hope you are right and I'm wrong, Mr. Chairman. Because if you are wrong, there will be a whole lot more bloodshed...
So you decided to lower the Fed fund rate just because the market was spooked for one day? Why can't you let the market work itself out? Isn't that the basic principle of the "free market" economy?
And why this doesn't feel like its the first time we have excess of capitalism injected in the economy and have it taken away by the central bank? See: Panic of 1907, Crash of 1929...etc
I hope you are right and I'm wrong, Mr. Chairman. Because if you are wrong, there will be a whole lot more bloodshed...
