An Economy on the Brink of Disaster

Economist Paul Krugman says the Federal Reserve is "Betting the Bank" in an attempt to prop up our economy. He writes, "To my knowledge, no advanced-country's central bank has ever exposed itself to this much market risk." He's worried that it won't work. Here's a quote:

I used to think that the major issues facing the next president would be how to get out of Iraq and what to do about health care. At this point, however, I suspect that the biggest problem for the next administration will be figuring out which parts of the financial system to bail out, how to pay the cleanup bills and how to explain what it's doing to an angry public.