Fed’s easy money policy led to US crisis: Steve Forbes
May 23rd, 2009
As the Obama administration works its way into reviving the US economy, and the Fed does its bit to stabilise the financial system, they have one critic who’s not mincing his words — Steve Forbes, President & CEO, Forbes and Editor-in-Chief, Forbes Magazine. Steve said the crisis is a creation of the Fed and its policy of easy money over the last decade. “When the Fed created too much money for far too long, it provided the fuel for the housing bubble.”
Forbes said that the Fed is in the grasp of academics who don’t know central banking. “Ben Bernanke came out of the academia, Allan Greenspan came out of the consulting business not Wall Street. So they are both guilty.”