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The Crisis of 1907

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Over at the WSJ.com’s Economics Blog, Professor Steve Quinn looks at some historical parallels to today’s crisis of confidence in the credit markets.

The Fed’s decision to sit back and to generally enjoy the ride, punctuated by a minor intervention here and a cryptic comment there,seems extraordinarily feckless by modern standards.  I have no prescription, but Fed Chairman Bernancke ought to be much more visible and much more candid about what the Fed thinks is going on.  Playing the part of the distant oracle isn’t connected to today’s information realities.

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