The Federal Reserve's Crony Capitalism | James A. Dorn | Cato Institute: Commentary
EXCERPT:
"The Federal Reserve’s decision to release forecasts for short-term interest rates is supposed to clarify monetary policy and reassure the public. By keeping the federal funds rate close to zero for three more years, and switching from shorter to longer-term securities, the Fed hopes to spur investment and growth. The problem is that manipulating interest rates and allocating credit to favored parties fosters crony capitalism, not market liberalism."
COMMENT:
This article covers a lot of ground but it's worth reading. It's a good statement of the objections that can be made to current Fed policy. Keep in mind, though, that it doesn't attempt to give Chairman Bernanke's side of the story.
