Commentary: Fed policy helped create subprime crisis

The crisis in the subprime-mortgage market "is at least partly the outcome" of recent shifts in Federal Reserve policy, Cato Institute senior fellow and former Dallas Fed vice president Gerald P. O'Driscoll Jr. writes in a Wall Street Journal commentary. "In recent years, monetary policy has created an expectation that the Federal Reserve will bail out investors when asset bubbles deflate," O'Driscoll said.

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