If the Fed brought home a report card reflecting its performance since its creation in 1914, its parents would not be pleased. Its record for stability is among the worst in the developed world, and it has done little to fix the problems it was invented to address.
People look to the government to prevent future financial crises and too many trust that politicians and economic experts can create policies to protect us and our 401(k) plans. We shouldn’t rely on them. These experts are smart, mostly well-intentioned people but they can’t prevent the next crisis. No one can. Why is that? And why is a future crisis inevitable? I discuss these and many other questions with “Finance and Philosophy” author Alex Pollock.