Blow it or poke it?
 

What should be the Feds stance on bubbles?

Greenspan doesn't believe the Fed can or should address market bubbles, i.e. tech stocks, housing prices, commodities. Greenspan has argued that bubbles provided needed technology and process advancements. He also believes the Fed should pick up the pieces in their wake - by bailing out large financial institutions that help finance them.

Volcker thinks the Fed should be more interventionist and try to curb bubbles in the asset markets. He says, "It's no fun raising interest rates" but it must be done to regulate price and asset markets. Volcker doesn't think it's the Feds role to broker bailouts.

Bernanke looks like he's more the Greenspan camp, because of the bailouts, but it's difficult to see that is truly the case; he is basically still cleaning up, at this point.

Damn you!

I thought this was going to be another thread about Megan Fox.