[Freedom4US]

I think this is a misread of Friedman.

The problem with the FED has been akin to “pushing on a string”; easing interest rates tends to create speculation in the markets, one cannot prevent money lent from ending up in the stock market, that’s what Friedman was talking about.

If you look at the charts, after the crash the government was actually pretty good about easing rates but it didn’t help.

[LowCountryJoe]

I don't believe I misread Friedman. He talked about this in Capitalism and Freedom and in Money Mischief. The one book I have not read from him on this topic was A Monetary History of the United States (co written with Anna Schwartz). If you know something different, please direct me to it.