4 of 10
BACKNEXT
Everyone spikes the punch bowl
Everyone spikes the punch bowl
William McChesney Martin, Jr., the longest serving Fed chairman, once famously described the Fed's role as ''to take away the punch bowl just when the party gets going," referring to the need for the Fed to raise interest rates before asset bubbles are formed.

Martin's successors have since recited that quote hundreds of times, but few have successfully heeded its advice.

Instead, loose monetary policy was partially responsible for the debt crisis in the 1980s, the dot-com bubble of the 1990s and the housing bubble that popped in 2008. Essentially, the economy drank (and kept drinking) the Fed's punch until it had one heck of a hangover.



NEXT: Stability in Iceland
Last updated March 24 2011: 3:05 PM ET
More Galleries
The 13 most WTF gadgets From the weird to the gross, these 13 gadgets will make you wonder why they even exist. More
Best-loved cars in America These cars and trucks topped J.D. Power's APEAL survey, which measures how much owners like their new vehicles. More
America's most powerful cars A new 'horsepower war' has erupted among U.S. automakers and these are the most potent weapons in their arsenals. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.