So exactly what should we do? Problems are easy to describe but not so easy to solve.
Now that the federal government is playing an ever larger role in the economy, a look at Washington's track record seems to be long overdue.
The recent release of the Federal Reserve Board's transcripts of its deliberations back in 2007 shows that their economic prophecies were way off. How much faith should we put in their prophecies today -- or the policies based on those prophecies?
Even after the housing market began its collapse in 2006, Federal Reserve Chairman Ben Bernanke said in 2007, "The impact on the broader economy and financial markets of the problems in the subprime market seems likely to...
The money that would predominate, in such a system, is honest money. If you have the option of taking, in payment, a silver coin, or a piece of paper with a number on it, you would probably choose the silver coin. Or, you might accept the slip of paper, with a discretionary discount (a wise ancient practice).
Under pure Capitalism, the best products and services tend to predominate. Just as people don't buy moldy bread, so they would be very circumspect about taking slips of paper with numbers on them.