Taxpayers have put $1.5 billion into the CO-OPs that have failed. That money is just gone.

I think that is exactly the right approach. I want to thank you for that.

So something like 70 percent have already failed. I am told to expect there will be more failures.

I think this is a manifestation of the adverse selection that some of us were afraid was going to occur.

I think just this morning, the latest CO-OP announced its failure.

I think a layman's reading of a defined population suggests something much narrower than what is contemplated here.

But just so that I understand, it is true that, as I understand it, there are these different subsets that will undergo different experiments.

So it strikes me that clearly it is not the payment model that drives the docs to prescribe the 10 highest-expenditure drugs; it is the fact that there is no alternative.

I got the impression from your predecessor that his view was that the principal effect was shifting the timing.

My sense of the academic consensus is that the main effect of accommodative monetary policy is to induce economic activity that was going to occur later at an earlier time.

So to what extent is this unprecedented accommodative monetary policy for these many years now part of the reason that we have had relatively anemic growth today?

One of my concerns is that the inducement to expand capacity, the unnatural excess capacity that comes from unnaturally low interest rates, could get the Fed into a kind of vicious cycle.