Quote of the Week - George A. Selgin

"Why did mortgage lenders earlier this decade start showering credit as if it were spewing from a public fountain? The answer is that credit was spewing from a public fountain—and that fountain was the Fed. In December 2000, the Fed began an unprecedented year-long series of rate cuts, reducing the federal funds rate from over 6 percent to just 1-3/4 percent—a level last seen in the 1950s. By mid-2003, two further cuts had reduced the rate to just 1 percent." - George A. Selgin in the Christian Science Monitor