The Great Debt

Bloomberg reports:

March 22 (Bloomberg) -- The Federal Reserve could have acted faster to prevent a meltdown in the subprime-mortgage market by curbing the lax lending standards that contributed to the crisis, the Fed's chief bank supervisor said.

``Given what we know now, yes, we could have done more sooner,'' Roger Cole, the Fed's director of banking supervision and regulation, told the Senate Banking Committee in Washington today, as regulators testified for the first time before Congress on the market rout.

It cannot be said that they did not know about it then, but only that they did not care to do much about itbecause of their own itnerests at the time. This is not the case, since the Federal REserve did not want to cause panic. Perhaps it is a sign of the times, however, since we might be on the verge of the wave collapsing into a new era of depression. Perhaps, this one will be called The Great Debt. America has persevered through troubled times, but in those were not days of interconnections and complexities.

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