Feb 2, 2010

Michael Pollaro on the link between interventionism and financial crises

You may be wondering – forget the 1930’s, these policies of Bernanke, are they not the same interventionist policies pursued only recently by former Federal Reserve Chairman Greenspan, the kind of policies that preceded not only the recent Housing Bust and Credit Implosion, but the Savings and Loan Crisis, the Peso Crisis, the Asian Crisis, Long Term Capital Management and the Tech Bust too.

The answer of course is yes.

You even may have noticed a disturbing pattern; that being, each crisis begets a larger interventionist response, yet before long we find ourselves in the midst of the next, even bigger crisis. You may then be tempted to conclude that despite repeated and ever growing monetary largesse, despite repeated and growing government intervention in the economy, the crises are getting bigger and bigger and bigger.

~ Michael Pollaro, "Ben Bernanke, Worthy of Person of the Year?," True/Slant, January 4, 2010

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