Tuesday, June 16, 2009


Got to Austin just in time for a really great seminar on the financial
crisis. The professor knocked a ball around in my head and opened me
up to the effects of foreign capital flows on the power of the Federal
Reserve. It seems that over the past twenty years the paradigm of Fed
power has been shifting slowly until their ability to control interest
rates has completely fallen into the hands of foreign capital.

Now, some might say the Fed never had that power in the first place,
but let's take one thing at a time.

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