As knowledge gets dispersed, power is going in the opposite direction. That divide is the root of the current crisis, argues Arnold King on the Library of Economics and Liberty blog.
We got into this crisis because power was overly concentrated relative to knowledge. What has been going on for the past several months is more consolidation of power. This is bound to make things worse…the Fed and the Treasury cannot possibly have knowledge that is proportional to the power they currently exercise in financial markets.