The real story here is that the FED and all of its governors aren’t any smarter than the people reading this thread. They didn’t know, they suspected, they did nothing and here we are today. How is that better than just the market regulating itself?
The FED is working to eliminate the volatility of the marketplace. It’s tamped it down so badly that it is causing a series of other disruptions. Government has destroyed trust in itself and its institutions. Who can you turn to now?
I was having a conversation the other day with a Kenyan doctor and his wife, an MBA. The wife said that socialism was bad as it encouraged corruption and that capitalism was just as bad because people will cut corners for greed.
What the Yellen vote will tell us about today's Republican Party
http://www.foxnews.com/opinion/2013/11/14/what-yellen-vote-will-tell-us-about-today-republican-party/
The truth is that neither economic theory nor evidence suggest that creating so much new money will create sustainable new employment. Bernanke has pointed to stock market gains as evidence for success, but there is also little correlation between such gains and employment growth. This particular brand of “trickle down” economics simply does not work.
In the long run, what the Fed has done is to clamp ever tighter price controls on interest rates, which are among our most important prices.
Even a beginning level economist knows that price controls do not improve an economy. They destroy it.
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” — Winston Churchill