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Understanding the Credit Crisis

Posted By Todd Thurman On September 25, 2008 @ 5:31 pm In Economics | Comments Disabled

Heritage fellow JD Foster explains what led to the credit crisis and why it cannot be ignored. There are unprecedented problems in the financial markets. The Federal Funds Rate is the No. 1 tool that the Federal Reserve Board has for governing monetary policy. The Federal Funds Rate jumped much higher than the Federal Reserve Board had targeted and the Federal Reserve lost control of it. The Federal Reserve is pumping money into places where it is not working and neglecting places where monetary liquidity is needed.

Heritage has written extensively [1] on the economic crisis we are facing.

[youtube]http://www.youtube.com/watch?v=bL0bgz_VHTo[/youtube]


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2008/09/25/heritages-jd-foster-explains-the-credit-crisis/

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[1] written extensively: http://www.heritage.org/research/economy/housingandfinancialmarkets/

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