The Fed is the mad doctor, the Dr. Frankenstein, trying to create life from dead parts.
Everywhere I read in the press that the Fed is “injecting” the sluggish or moribund credit markets with a “much needed dose” of confidence and liquidity. Some sort of credit B-12 cocktail from the 60s.
This level of thought is totally false. The Fed is supplanting capital market discipline and preventing the higher rates of interest that would bring forth more capital and also careful capital that seeks the economy’s better opportunities.
It is said that the Federal Reserve Act of 1913 allows this lending. I believe it may, and that shows exactly how unconstitutional the Fed is.
