[ExI] Article From March on SubPrime

[Damien Sullivan]

On Thu, Sep 25, 2008 at 10:48:18AM -0700, Samantha Atkins wrote:

> Is it not the Fed that control interest rates and the money supply?  I  
> confess I forget which agency, quasi-governmental private group (like  
> the Fed), does what these days.  But interest rates and inflation of  
> the money supply are critical enablers of major bubbles.

Bubbles happened long before central banks like the Fed existed.  The
Fed can make things worse -- probably the Great Depression, an
extraordinary version of earlier 'panic' cycles -- but also better --
the lack of panics and bank runs since then.

-xx- Damien X-)