Leaders of the Federal Reserve – both Ben Bernanke and Janet Yellen – have repeatedly emphasized that the Fed’s monetary policy is not a panacea, not a cure-all for all the nation’s economic challenges. In my opinion, many underlying fundamentals of the economy remain to be adequately addressed.
That concern also owes something to the fiasco of the Hedge Fund Long-Term Capital Management and to the response it triggered. Many people are wondering whether the greater part of the problem is not still floating below the surface, as with an iceberg.