So, the solution to bubbles is in our nursery schools where we train our children to a sensible prudence when it comes to investing the elixir of their production, their money. Good luck, Fed.
SPONSORED BY:
- 1
- 2
Bubble Trouble
Email To A Friend
Please fill in the following information and we'll email this link.
SPONSORED BY
Finally, the Federal Reserve is an organization much like any other—run by human beings with fallible judgment, driven by consensus, and less than congenial for contrarians. In bubbles, skeptics are always marginalized while the promoters are anointed as seers. And when a bubble gets loose, it infects every institution: banks, the media, and, yes, the Federal Reserve. The Fed, in the person of Alan Greenspan, failed to diagnose the Internet bubble accurately, and it misjudged the housing bubble, too. The Fed, in the person of Ben Bernanke, failed to see the credit mess coming. And once that crisis hit, the Fed failed to accurately gauge its scope and depth. When the party really gets going, we all drink from the same punch bowl.
© 2008
- 1
- 2
Presented By
My Take
Each Newsweek reader is different—and now your Newsweek can be, too. Use this page to create a experience that's personalized for you and your interests. My Take: it makes Newsweek whatever you want it to be.
Discuss