The Only Game in Town (Amazon,) walks us through how Central Banks picked up the slack when elected governments dropped the ball after the global financial crisis. Excerpts are here.
Thoughts
Central Banks acted as drug dealers when both banks and governments binged on credit. Greenspan and his Fed were so Randian that they turned a blind eye toward the principal-agent and moral-hazard problems that their endless bailouts and light-tough regulation was stoking. When the system imploded, their actions prevented a much-need rewrite of the status quo. We now have a world economy that is even more deeply hooked on easy credit, thanks to Central Bank interventions. Central Banks continue to enable governments to sweep deep-rooted problems under the rug. They do not deserve credit for “saving” the global economy that they collectively pushed over the cliff.
“I tried to drown my sorrows, but the bastards learned how to swim…” ~ Frida