You can’t make this stuff up – the latest from the economic know nothings at the WSJ Editorial Page:
As for the Fed, we’d feel better if current Chairman Ben Bernanke had been running a tighter monetary policy for the last year; it might have left him with more policy room if the economy does turn sour. As it is, any easing now runs the risk of a dollar rout, which could lead to an even larger loss of confidence and selloff. The current problems in the housing credit markets owe a great deal already to the Fed’s mistake in keeping monetary policy too easy for too long during the late Greenspan era. We now have to ride them out, and Mr. Bernanke shouldn’t make them worse with a panicky, premature easing.
Because interest rates did not rise even higher, the FED has no room to lower them now? Do these fools realize that the reason the Greenspan FED kept interest rates low was to reverse the business investment slump? Or do they think there are different financial markets for business versus residential investment? I’m glad Chairman Ben is running the show and not these clowns.