The Fed needs to free the market Outside the Box - MarketWatch: "The government and the Fed are currently doing the same things that got us into trouble. Bernanke has pushed interest rates lower and pumped in far more money than his predecessor Greenspan did. And rather than letting the housing market self-correct and find its natural bottom, the federal government is using every trick in the book to boost home prices.
Two strategies aim to contain imprudent risk-taking and speculation: One is to have the Fed inject boatloads of new money, while the government bails out banks that make bad loans, but hope that regulators can spot and defuse any trouble before it gets out of hand. We’ve already tried that and it didn’t work.
The other strategy is for the Fed and government to stop trying to steer the economy, and let private investors reap the benefits — or the losses — in a free and open market. Let’s try this approach this time around."
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