Goldman Sachs is predicting the Fed Funds rate will be cut to 1% in 2009 http://www.freerepublic.com/focus/f-news/2097002/posts , and the market is already pricing in a 0.5% cut to 1.5% at the October 29 meeting http://www.bloomberg.com/apps/news?pid=20601103&sid=av6n4Ox5e9XA&refer=news . I fear that we will soon be inflating another bubble. Maybe the Fed does need to cut rates, but it will need to be more aggressive in taking rates back up than in the last cycle.
Congressman Paul Ryan (R.,Wis.) has proposed repealing the Humphrey-Hawkins Full Employment Act of 1978 and restoring the Fed mandate to a single goal of low inflation http://www.house.gov/ryan/speeches_and_editorials/2008speechesandeditorials/5108WSJ.htm .
Ron Paul wants to reinstate the gold standard . I don't think it has a chance of happening, but it seems less absurd than it did ten years ago.
I don't know how the monetary system should be changed, but it clearly has not been working well.
I smell a RAT. The Federal Reserve might not have waited to start printing up the money, but there can be NO DOUBT that this was contrived by this Democratic Congress and a lack luster Presidency. They're just trying to make excuses for when this thing fails to blame it on Bush and McCain.
All “credit” is evil. Credit assumes that the borrower and lender both can predict the future.