Rather than propping up "bad blood" and allowing the "illusion" of wealth to continue to be fostered, the Federal Reserve should allow the market to flush out the "bad blood" and operate the way it is intended. Conclusion

In conclusion, the good that the Federal Reserve does is to monitor economic policy, encourage maximum employment and long-term stability. The way it does so, however, especially in times of crisis such as the world is currently experiencing is highly criticized by economists who do not support managerial decisions made by Bernanke and others. As Ron Paul states, the Federal Reserve could better itself by putting an end to fractional reserve banking and allowing institutions, which are filled with...

Doing so only helps bring down the value of the dollar, which it is supposed to protect.
Reference List

Halloran, M. (2009). Systemic Risks and the Bear Stearns Crisis. The Road Ahead for the Fed. CA: Hoover Institution Press.

Kohn, D. (2009). Monetary Policy in the Financial Crisis. The Road Ahead for the Fed.

CA: Hoover Institution Press.

Mission. (2009). Federal Reserve. Retrieved from http://www.federalreserve.gov/aboutthefed/mission.htm

Paul, R. (2009). End the Fed. NY: Hatchette Book Group.

Schultz, G. (2009). Think Long. The Road Ahead for the Fed.…