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Ex-Fed Governor Says Crisis More Complex Than 1930s

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January 04, 2009 – Comments (1)

I really don't have an opinion of this at the moment, but found it interesting:

SAN FRANCISCO (Market+atch) -- The financial shock that hit the U.S. this autumn was bigger than a similar shock during the Great Depression, former Federal Reserve governor Frederic Mishkin said Sunday. The recent shock "is much more complicated" and the clean up will be difficult to do, Mishkin said. The Fed is in "experimental mode," he said during a presentation to the American Economics Association. Mishkin said he was a strong supporter of the Fed's recent move of cutting interest rates to range to zero and pledging to use unconventional monetary policy. "The Fed doesn't want to be a deer in the headlights," he said.

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1 Comments – Post Your Own

#1) On January 04, 2009 at 6:55 PM, TMFAleph1 (94.92) wrote:

Thanks for bringing this to my attention, but surely it doesn't take a former Fed governor to observe this. Over nearly eight decades since start of the Great Depression, the financial and economic system has become immeasurably more complex with an exponential increase in the number of interdependencies, both domestic and international -- it's hardly surprising that this crisis should also be more complicated.

Alex Dumortier (XMFMarathonMan)

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