Why Federal Reserve is a Failure !

1. The Fed ignored the early signs of the crisis, it tried to cover up a small bubble in early 2000 which later blew of up into a mega bubble that burst into the current financial crisis.

2. Fed was retroactive it did too little too late, was behind the curve most of the time in the crisis times.

3. Fed view on inflation is flawed, history shows that printing too much money will lead to highly inflationary scenarios. With the amount of money being printed this time it could only lead to Hyper Inflation.

4. Fed kept Interest rates too low for too long time, this created unhealthy lending procedures.

5. Fed gives life line to failed institutions rather than letting them to demise. Institutions fail because of bad business practices, and they deserve to dis appear.

6. Fed had too much faith on big banks believing they will be self regulate themselves.

Alan Greenspan was the chairman of the Federal Reserve for 18½ years, he said the current financial crisis has uncovered a flaw in how the free market system works and that had shocked him