The Federal Reserve is the reason we don't really have to fear another Great Depression. They work for The People and their records are public. Industry self-regulation serves industry.
Adjusting the Fed funds rate has staved off much inflation, especially the way Greenspan did it. Bernanke let the funds rate stay at 5.25 fir too long, but usually adjusting the rates holds inflation in check.
I am not against regulation (it's absolutely necessary in many cases), but I do feel it necessary to point out that part of the capitalistic failure in this case was due to the belief that if it went bad the government would be there to bail them out. Our past actions of helping businesses when they are down has lead to a more reckless environment.
This is real possibility. As always there is a proper balance to be sought between government regulation and a capitalist free-for-all.
Well, yes. Having control over the interest rate is damned handy. And no, inflation is something else entirely.
Damn handy because it doesn't show the true nature of the current market. The market should set the rates.
So what? It works and is valuable to the nation. It does. The Fed just sets it's own lending rate. No one points a gun to the head of "the market" and forces it to borrow from Uncle Sam. They have the whole world to borrow from including each other.
