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The Fed's New Tricks Are Creating Disaster

March 19, 2008
The Federal Reserve is trying a range of new tricks to push new forms of lending as a means of preventing what they fear may otherwise be a major collapse in financial markets. What all these strategies have in common is an unwillingness to come to terms with the reality that the crisis is based on real factors and can't be merely papered over without grave consequence to economic health. The engine of economic growth is not money, however, but real savings. If the pool of real saving is declining or stagnating, then the economy -- also in terms of GDP -- will follow suit, irrespective of what the Fed is doing. FULL ARTICLE

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