READ: John Cochrane On Financial Reform And Macroprudential Policy

Financial Reform in 12 Minutes:

The “macroprudential” idea that the Fed can spot “bubbles” forming, and can and will stabilize asset prices by artfully controlling interest rates, intervening in many markets, and controlling the details of financial flows, so that nobody loses any money in the first place, is a triumph of pipe dreaming. (An earlier panelist eloquently called it “profoundly misguided.”)

Go read the whole thing at The Grumpy Economist.