Fed 75 basis pts cut: Thank you Anna Schwartz

Well, we had a US Fed emergency 75 basis points cut this morning. Quoting a previous blog entry “Alan Greenspan in trouble - When Anna Schwartz speaks“,

P.P.P.S. Quote from above Telegraph article (emphasis mine), “Bernanke insists that the Fed has learnt the lesson from the catastrophic errors of the 1930s. At the late Milton Friedman’s 90th birthday party, he apologised for the sins of his institutional forefathers. “Yes, we did it, we’re very sorry, we won’t do it again.”” Lets hope the Fed has learned.

I suppose this is Bernanke trying hard to no do it again. Since my knowledge of US monetary history is limited to non-existing, I deferred to the expert and thank the great monetary economist Anna J. Schwartz (92-years-young this year) instead (rightly or wrongly).

Thank you Anna for waking up Ben. I hope Ben hasn’t crashed the car yet. Anna, can you have lunch with Ben more often? He really needs some heart-to-heart talk and a few nice chats and lessons on US monetary history. Thanks Anna. (smile)

P.S. Here is something resembling a transcript of episode of Milton Friedman’s part 3 of Free to Choose, “Anatomy of Crisis”. I don’t know how accurate is this transcript but one may learn something from it.