The Fed

The Financial Times reports Fed mulls options in tacking liquidity pr

Given the wide variety of assets it can accept (in particular, non-AAA MBS), the Fed also has the potential to get itself into plenty of trouble, the sort of trouble that might require it to seek an even larger expansion of its powers.

The Federal Reserve added 31.25 billion dollars in temporary reserves to the US money markets

Punk, Ziegel analyst Richard X.

James Hamilton (an econ professor at UCSD) recently discussed the Taylor

Granted, many of us have benefited from this era of "easy money," but that is going to change. Indeed, the party is over, the lights are out, and I don't know when they will be turned on again.

A bizarre letter to the editor in the Business section of the Boston Globe:

A solid gold standard in which every dime spent had to come from an existing stock of money would shatter the whole system. Is it any wonder that this is the last subject politicians want to talk about?

Unfortunately, by buying up MBS and propping up the market the Fed will only cause more harm than it already has.