“Yes indeed. How the central planners at the Federal Reserve manipulate the economy (and inevitably screw it up) is not understoodby mostpolitically engaged people. For instance there are still those who insist that the crash of 2008 was the fault of capitalism and “free markets.” This couldn’t be further from the truth.
The central planners at the Federal Reserve, in the wake of the dot com crash and the September 11th attacks kept interest rates too low for too long. It then encouraged too many people into the housing market. Once the bubble started inflating the malinvesment fed on itself until the whole thing collapsed.
In a free market interest rates would have moved up and cooled the housing market. We’d likely have avoided any crash. But in our Fed dominated economy this was not allowed to happen.”