by John Rubino
James Grant, the venerable publisher of Grant’s Interest Rate Observer, just wrote an opinion piece for the Wall Street Journal that, had it appeared on a free site, would have been at the top of today’s “Best of the Web” links list. But since it exists behind the WSJ’s paywall, here’s an excerpt to illustrate why Mr. Grant has so many fans:
It took a viral invasion to unmask the weakness of American finance. Distortion in the cost of credit is the not-so-remote cause of the raging fires at which the Federal Reserve continues to train its gushing liquidity hoses.
But the firemen are also the arsonists. It was the Fed’s suppression of borrowing costs, and its predictable willingness to cut short Wall Street’s occasional selling squalls, that compromised the U.S. economy’s financial integrity.
‘A Very Tough Two Weeks’