I began reviewing David Stockman’s The Great Deformation: The Corruption of Capitalism in America. Stockman’s 700 page book provides the evidence of the Federal Reserve’s bubble policies. The compelling data he has compiled challenges Blinder’s thesis that the Fed is blameless for the housing bubble.
Stockman’s economic and financial history puts the tail on the “donkey”, namely, the Fed epitomizes America’s crony capitalism that is responsible for the growing income inequality in the country. I wish Stockman’s book was in chronological order, which would have eliminated the repetition that undoubtedly added at least 100 pages to his narrative. Despite this shortcoming, Stockman’s book makes the case that free markets did not cause the bubbles that have occurred since the Fed was created in 1913.