When we moved on February 4th [to raise interest rates], I think our expectation was that we would prick the [speculative] bubble in the equity markets.
FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN
Now that is a truly scary quote. Here we have the Federal Reserve Chairman openly admitting that he purposely used monetary policy to bring the stock market crashing down from its “irrationally exuberant” speculative heights. And what about this quote from one of the most eloquent economists of our time, Paul Krugman:
You may quarrel with the Fed chairman’s judgment—you may think that he should keep the economy on a looser rein—but you can hardly dispute his power. Indeed, if you want a simple model for predicting the ...