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The Dirty Toilet Principle: The Fed and the Housing Bubble We all know the dirty toilet principle. If the toilet is dirty, the custodian gets fired. That's the way it works for most people. If you mess up on the job, there are consequences. And if you mess up big time, there are serious consequences. However, that's not the way it works for the people who set the country's monetary policy at the Federal Reserve Board.

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The Dirty Toilet Principle: The Fed and the Housing Bubble

We all know the dirty toilet principle. If the toilet is dirty, the custodian gets fired. That's the way it works for most people. If you mess up on the job, there are consequences. And if you mess up big time, there are serious consequences. However, that's not the way it works for the people who set the country's monetary policy at the Federal Reserve Board.