I agree that the management of our money supply and credit has been irresponsible for many years now. But what you are seeing there is a projection of the wishes of the Congress, mainly.
If Congress wants to have cheap and easy credit, then they can make it happen, because they have the legislative power. Everyone in govt, or organizations that live or die at the pleasure of the govt, knows that. You don’t think the CEO of Fannie Mae, in its day, made a move without chatting with Chris and Barney first? Same for the Fed. It’s convenient for Congress to allow the Fed to ‘get out in front’ on issues opposed by most voters, but if the Fed were to actually act against Congress’s real wishes, Bernanke would be humiliated or re-chartered in a flash.
