Hail Paulson

Megan asks how the Fed has any authority to do what it's been doing (as does Paul Volker)? I think her conclusion is right on: something needs to be done, and no one else is interested in stepping up to the plate. This NPR interview is also bogus -- we're talking about actual governance here and elected officials have no business being any part of it. Caesar knows who is Caesar, Circus should know it is Circus.

In the pas de deux between the Treasury and the Fed, it's interested to see Paulson eclipse Bernanke. I guess if you mix a bunch of ex-bankers with a bunch of academics, it's clear who will end up on top. So the Treasury will give money to the Fed, so the Treasury can then give it to Wall Street.