I finished Alan Blinder’s book on the financial crisis. He does an excellent job chronicling the bailouts that began at the end of the Bush presidency in 2008 and continuing in the Obama administration. At the end of the book there is a section, “The Ten Financial Commandments.” Needless to say, ending the Fed is not one of them. In fact, Blinder is “blind” to the damage the Fed does to the economy by manipulating interest rates and creating new money. He also asserts bubbles are inevitable in our economy but does not provide an explanation, other than citing “human nature.”
Tomorrow, I will review David Stockman’s analysis in The Great Deformation: The The Corruption of Capitalism in America. Stockman was interviewed on CNBC today and was pessimistic about the economy despite Trump’s assertions he will fix the economy.