The Swedes got i right.

Remember when the Fed raised margin requirements? -------------------------------------------------------- http://www.bloomberg.com/news/2010-12-28/sweden-shows-central-bankers-how-to-fight-against-next-asset-price-bubble.html Sweden’s central bank may set the direction for other policy makers as it looks beyond conventional inflation targets to asset-price growth in an effort to prevent the next... [more]

Remember when the Fed raised margin requirements? -------------------------------------------------------- http://www.bloomberg.com/news/2010-12-28/sweden-shows-central-bankers-how-to-fight-against-next-asset-price-bubble.html Sweden’s central bank may set the direction for other policy makers as it looks beyond conventional inflation targets to asset-price growth in an effort to prevent the next bubble. “Not countering asset-price increases has been the conventional wisdom among central banks, but what has it actually resulted in?” said Tina Mortensen, an economist at Citigroup Inc. in London. “Surely the current crisis has made central bankers rethink policy; Sweden is actually facing this problem” because “asset prices and monetary policy are a hot topic,” she said. In the U.S., Kansas City Fed President Thomas Hoenig said this month the “continued high level of monetary accommodation” may “destabilize the economy.” The Fed has kept its main rate at zero to 0.25 percent since December 2008. The Fed said last month it will buy $600 billion of Treasuries through June, helping keep yields low. [less]