Listen To a Ph.D Economist Confuse The Discount and Fed Funds Rate

Somewhat shocking, but typical of an academic: listen to Russ Roberts interview Tyler Cowen.

Some other interesting comments: How much of the current credit crunch is due to lack of transparency? And why have mortgage-backed securities stopped trading, rather than trading at a value with the expected number of defaults worked in? These two seemed to assume that mortgage-backed securities aren't trading at that expected value!

Roberts: "I'm not so sure how much of this trouble is due to a lack of transparency. It seems unlikely..."

Wow.