WHY DO WE NEED THE FED?
"I wouldn't start here if I were you," is the punch line of an old Irish joke, which monetary scholar Kevin Dowd cites to illustrate the deeper and deeper hole the Federal Reserve is getting us into.
Mr. Dowd, in a paper delivered last week (11/14) at the Cato Institute's 31st annual Monetary Conference, concluded:
"The modern financial system has not only kicked away most of the constraints against excessive risk-taking, but positively incentivized systemic risk-taking in all manner of highly destructive ways . We have gone from a system that managed itself to one that requires management, but cannot be managed.These last two lines could equally be applied to Obamacare, because both are examples of F.A. Hayek's description of "The Fatal Conceit" so often exhibited by those who believe in government more than markets.
We have gone from a system that was guarded by market forces operating under the rule of law to one that requires human guardians instead -- but we have not solved the underlying problem of how to guard the guardians themselves."

