Federal Reserve

Wandering Eye: Dixon kicks off campaign, banks 'almost comically awash in money,' and more

Wandering Eye: Dixon kicks off campaign, banks 'almost comically awash in money,' and more

Seven years ago, reality came to mortgage markets and wiped out trillions of dollars of delusional wealth. The economy crashed and governments scrambled to inject new money—real money—to replace the vanished fake money so things wouldn't get worse. Now the Federal Reserve is again faced with the prospect of too much money in the system. It wants to raise interest rates so that the economy won't "overheat" (i.e., inflation; i.e., ordinary idiots get pay raises). Always in the past, the Fed accomplished this by taking back the money it had previously put in. But this time, as The New York Times' Binyamin Applebaum

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