The Fed Is Mostly About Talk

The Fed was saying in 1969 it was being restrictive. We're going to stop inflation and inflation kept on going for another dozen years or so, because it's not what the Fed says. Rates were generally rising through the late 1960s, right on into the 1970s. The market said the Fed was wrong about its stance. In 1932, 1,456 banks with deposits of $716 million suspended operations,. Not a good thing. Compared to 2,294 banks having deposits of 1.7 billion in 1931, that's a lot of money in 1931 and 1932. So what they were saying was, we must have done a good job because only about 1,500 banks had failed this

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