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Author Archives: Caroline Baum

Fed misdiagnoses economy, gives it placebo

When a patient walks into a doctor’s office complaining of a chronic condition, the first thing the physician does is take a medical history. When did the symptoms start? Describe them. Have they gotten better or worse? Have you consulted a doctor previously, and if so, what did he prescribe? What was the response?

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Bernanke’s Fed exit door now swings two ways

On March 25, 2010, Federal Reserve Chairman Ben Bernanke went before the House Financial Services Committee to outline exit strategies, or tools the central bank could use to drain the $1 trillion of excess reserves held by the banking system. At the time, financial markets were focused on whether the Fed would be able to bottle up those reserves, once the economy improved, to prevent an inflationary expansion of credit.

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