Fed Chairman Ben Bernanke has an op-ed in the Washington Post today defending the Fed's handling of the crisis (again) and explaining why he thinks proposed changes to the Federal Reserve system could be hazardous to our financial health. Yves Smith at NakedCapitalism does a nice job rebuffing much of Bernanke's rhetoric. David Merkel also has a response well worth reading.
For me, the most important thing to remember each time we talk about how the Fed saved us from the brink of collapse (for now) is that the Fed's policies also drove us to the same brink!
-KD
2 comments:
Yo, KD. This is a mess, and there is no good solution. If the Fed were run right, it would be a part of the solution. As it is, it is a large part of the problem. They blow the bubbles, but who will neutralize government-induced speculation?
MISH has a nice response too:
http://globaleconomicanalysis.blogspot.com/2009/11/ben-bernanke-pleads-for-his-job-my.html
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