The Federal Reserve's Role in Banking

The Federal Reserve's actions will on the one hand be pulled by this reality to which Michael and I have been referring to, which is a reality of the public character of banking. On the other side, there will be another pull as well in the opposite direction, which is the desire of the regulators to pretend as though they are still running a private system that is inherently virtuous. We need a more highly regulated banking system that is going to be aimed towards creating not only making productive investment, but creating broad-based prosperity.