Christopher Mayer

The inability of governments to maintain fixed exchange rates in the face of opposing market forces is only further proof of their impotency.

Those unfamiliar with Wall Street are naturally skeptical of this business of short selling. How can one sell what one doesn't own? Some may remember Daniel Drew's clever ditty "He who sells what isn't his'n must buy it back or go to pris'n." Interestingly enough, Drew was himself a famous short seller.

As the Washington Post recently reported, "The Federal Reserve Board has recently waged a vigorous campaign of defense, arguing that it was better to have boomed and busted than never to have boomed at all." Poetic perhaps, but is it sound?