On Sep 24, 2007, at 3:11 PM, Jayson Funke wrote:
Rather than linking the Greenspan Put and the role of the
Fed in sanctioning moral hazard in the stock market (i.e. the Fed
providing
market liquidity to prevent the market from “bottoming out,” which
subsequently sanctions moral hazard and strengthens risk-taking and
volatility), she focuses on the rising rate of private contracting
used by
the government during his tenure.
Did she betray any knowledge of the structure of the Fed, the mix of
private (the regional banks) and public (the board) ownership? The
institution's self-financing? Since the Fed was founded in 1913 and
not during the Cheney years, it might complicate her argument a bit.
Doug
