Fed policy and asset inflation

In these recent weeks of market turmoil, I have been affirmed in my respect for Ron Paul's economy policies. One view I have not bought completely into, though, is that the Fed should be completely dismantled; that its very existence creates the kind of problems we are experiencing now.

I came across an article today that blamed the housing bubble and stock market nosedive on the Fed - but not on the existence of the Fed. Instead, the author blames the 1995 decision of Alan Greenspan to jettison the policy of monetarism, which required limiting new money supplies to the rate of GDP growth.

Dow’s 40% Nosedive May Actually Turn Into a Safe Landing. Interesting reading.