Hair of the dog

The Fed attempts to expand its reach:

The Federal Reserve could use proposed new regulatory powers to try to stop credit and asset market excesses from reaching the point where they threaten economic stability, the US Treasury said on Tuesday. David Nason, assistant secretary for financial institutions, said the Fed could even use its proposed “macro-prudential” authority to order banks, hedge funds and other entities to curtail strategies that put financial stability at risk.

Interesting. Because they created the credit and asset market excesses that threaten economic stability with their inflationary monetary policies, the Fed’s prescription is to give it… yet more power. That’s going to work about as well as injecting cobra venom as an antidote for a coral snake bite.