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Sep 22 2007

Fed 2 Bank of England 0

Posted at 6:46 am

The Fed’s decisions to supply more money to the markets and to cut interest rates are starting to work. The Bank of England’s tough love approach is not. Telling us that supplying money to illiquid markets creates moral hazard is 3 years too late. The moral hazard was created in the easy money times when it did encourage too much lending. Conditions have changed. The Fed has woken up to that. When will the UK authorities?

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