Is the Fed to Blame for Asset Bubbles?

It's becoming clear that asset bubbles, not goods and services inflation has been the biggest bane of the economy over the last 20 years. The cycle of boom and bust seems to be becoming a fixture. This interesting article questions whether the Fed is behind this cycle.

It's becoming clear that asset bubbles, not goods and services inflation has been the biggest bane of the economy over the last 20 years. The cycle of boom and bust seems to be becoming a fixture. Fox Business has published an interesting aritcle entitled: Is the Fed to Blame for Asset Bubbles. The most interesting part of the article is the graph below which examined the last housing run in relation to interest rates. I love these kinds of charts.

Home Prices and Federal Funds Rate

The article also consists of a number of financial luminaries weighing in whether the Fed is to blame.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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