What Powell Can Learn (hopefully) from Bagehot

-and how I am playing interest rates in the hope that he does

In 19^th Century England, Walter Bagehot, Editor of the Economist wrote persuasively that the Bank of England during a financial crisis (like banks short of money) should do three things:

1. Examine cash-short English financial institutions looking for money

2. Loan money to those institutions that will be able (once the crisis is over) to pay the Bank of Englan…