"In the long run, we are all dead but our children will be left to pick up the tab."
"Capitalism is a process, of success, failure and renewal, and for it to work properly, institutions must be allowed to fail, no matter there size or political influence."
Gary North offers an excellent commentary on the speech here.
The FED is on the back of the tiger. Hoenig sees this. He knows the financial system remains fragile. I presume that he knows that the only way to keep it solvent is for the FED to refuse to sell its assets to the general investment community. Bernanke knows this, too.
No matter how carefully the FED sells off debt, this policy will reverse the recovery. I mean the hoped-for recovery. It is nowhere in sight yet.
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