I’d like to extend my remarks on Donald Kohn’s recent speech in Nashville, because here we have a top FED official clearly outlining the FED’s recent actions and, to some extent, trying to justify them. His speech makes clear what the FED has done and why it has done it. The overall picture he paints is clear. The FED has extended massive new credit to new kinds of borrowers. It has also boosted credit enormously to its traditional borrowers. As I see it, the immediate result is a huge expansion of credit welfare in the American economy. This is an … Continue reading Credit Welfare