Today's lead op-ed in the WSJ by an ECB economist seems to "spank" Greenspan's Fed.
The writer questions whether any central bank should attempt to influence ASSET PRICES.
INDEED, IN THE LAST FEW YEARS IT SEEM THAT GREENSPAN'S JOB DESCRIPTION HAS BEEN TO MAKE THE WORLD SAFE FOR MULTIPLE EXPANSION AND ASSET INFLATION!
The editorial questions if THAT policy would eliminate MORAL HAZARD AND ENCOURAGE PUBLIC SPECUALTION IN STOCKS AND ASSETS!
INDEED, IT OFTEN SEEMS THAT IN THE US SPECULATION IS LIKE PUBLIC DRUNKENNESS IN NEW ORLEANS DURING MARDI GRAS!!
A PUBLIC VIRTUE TO BE ENCOURAGED! NOT FROWNED UPON.
It is also mentioned that this type of policy could cause MISALLOCATION OF RESOURCES.
AND EVENTUAL WEAKENING OF THE CURRENCY AND THE ECONOMY.
WELL, WHEN YOU CAN'T SEEM TO "MAKE IT" WITHOUT AN ASSET BUBBLE, I GUESS YOU HAVE TO EXPECT SOME PROBLEMS.
