In replying to Charles Schumer he talked about the difficulty in knowing whether asset prices are valued correctly or not.
Ok but that completely voids his recent comments where he sees no "misalignments."
Good gravy this strikes me as a rather poor showing.
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4 comments:
Yes, but...
I prefer the vagaries of the Fed to the stupidity of Congress.
T
Yes, a rather poor showing by Bernanke -- e.g., http://tinyurl.com/ye3wrun -- but there is a certain "rock and a hard place" problem here IMHO: I have now come to believe that part of the reason Fed Chairs, beginning with Burns under Nixon, felt obliged to meddle in fiscal policy is because policy makers, legislators and executives increasingly lacked the courage to do the right thing when their polarized voting base disagreed; this problem did not happen overnight, it started a few decades ago and we are seeing its logical conclusion now.
Two very good comments so far.
Is it a logical conclusion or a logical continuem?
If anything like the Dodd bill passes, then a great deal of the Fed's regulatory function and quantitative easing power will be taken away so it's probably more of a conclusion to this phase.
Most congress-critters are smart enough to realize this could mean they have to make substantive (and frequently unpopular) decisions with less cover so I suspect they will create a technocratic agency or agencies to take them off the hook: Making difficult or unpopular decisions and then taking the blame for them is not something congress is noted for.
JMO
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