
Fed has abandoned monetary policy, critic says - tomh
http://uk.reuters.com/article/companyNewsMolt/idUKTRE50306H20090104?pageNumber=1&virtualBrandChannel=0
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Tangurena
I wouldn't say that they've _abandoned_ monetary policy, it is that their
primary tool in the past has been manipulating interest rates. Now that
interest rates are effectively zero, they've painted themselves into a corner.
Their only other significant tool, loaning money to "member banks" isn't
useful because the funds needed to keep the banking industry afloat need to be
largely astonishing numbers. I contend that the $700B bailout is just the
beginning, and the final butcher's bill will end up being closer to $5T.

