In various interviews she analyzed the current difficulties with great aplomb. The Fed is fighting the Great Recession as if it was 1930 all over again. But it isn’t. Today the problem is “toxic assets” not a lack of liquidity. Toxic assets are those assets on bank balance sheets that have no market price because no one can figure out what the hell they are. Terrific. In 1930 the problem was liquidity. Today it is not. Mr. Bernanke could do worse than pay attention to the words of Ms. Schwartz. Continue Reading →