The Fed Can't Do It Alone is a disappointing read. Government intervention is at the root of the problems. This crisis is substantive, and there's good reason for people to have lost confidence. Why should people have "confidence" when depository institutions run out of cash? While the Fed continues to loan money it doesn't have to banks that are out of reserves, some now look to the politicians to save them.A colleague of ours notes that many decades ago we traded banking virtues for a "sticker," which became a kind of carte blanche to biuld the massive and rickety derivatives structure.
He is currently preparing some superb explanatory material on this crisis which we'll publish in The New Individualist soon. I think you'll find it very practical and fascinating at the same time. As he notes, some of the complexities of the situation are "almost beyond human kin." Yet, with his fine writing and clear explanations, I'm convinced these articles will help you understand your economic world as never before.
Also see: Borrowed reserves go negative and A Change of View
