Bernanke fiddles while Wall Street burnsJanuary 19, 2008
Do something you idiot. It’s incredible how a Professor who earned much of his fame by criticizing the Federal Reserve’s ineffective communication strategy is proving to be one of the most incompetent communicators in recent history. Investors and private industry hate uncertainty. If the central bank can’t provide some assurance that widespread bankruptcies won’t seize the financial industry, why does it even exist? I’m not a fan of central banks or fixing interest rates below market levels with massive cash infusions, but even an ill-advised rate cut would be better than deceiving the markets. If you believe the economy is heading towards recession and interest rate cuts are the way to solve the problem, why not do it now? If you don’t believe the economy is heading towards recession or that rate cuts are simply inappropriate, why sound so dovish everytime you open your mouth? Bernanke needs to either drop the rates or shut the hell up. Bernanke has managed to alienate everyone, those who are calling for rates cuts and those who aren’t. He must be enough of a student of central banking to recognize that credibility is everything. If nobody believes you will follow through on your publicly announced intentions then you become irrelevant at best. I’m somewhat at a lose to rationally explain his actions. If anybody has ideas I’m open to suggestion. The only thing that comes to mind is that he simply doesn’t have the votes. One positive to emerge out of this crisis is a widespread resurgence in negativity towards central planning of money. It was a bad idea 95 years ago and it’s a bad idea today.
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[...] indecision and the Federal Government’s spending habits. Recently in the article Bernanke fiddles while Wall Street burns I solicited rational explanations for their behavior. The response has not been overwhelming, but [...]
I think the key is who pays Ben Bernanke’s paycheck? Follow the money. Is he serving our best interests? Go to google.com and view the video “Freedom to Faschism”. Bernanke quoted in 2005 in the Washintong Post “There is no real estate asset bubble”. Then recently testifying before the financial cmte. of Congress “Inflation does not affect americans who buy products within the country”. Now with everything I see in stores “Made in China” I think this may not be correct :). I Mr. Bernanke is not this stupid. Thus to whom is he working for? WHO SIGNS his paycheck? Who owns the Federal Reserve corporation?