Unfounded optimism is the basis of mental health
by Darryl Robert Schoon
“We remain committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible, and to limit lasting damage to the economy.”
Fed Chairman Jerome Powell, September 22, 2020
Six months before the 2008 financial crisis, I addressed the Fed’s ability to fix the fundamental problems underlying credit and debt economies in The Die is Cast, The Cast Will Die, (March 24, 2008):
Today, Americans are looking to the Fed to protect them against the financial chaos threatening our economy. This is tantamount to the Jews in 1930s Germany looking to the Nazis to stave off a possible holocaust. The Fed cannot help America with its economic problems because the Fed is itself the cause of those problems.