>>>And you're blaming Bernanke? You're confused.<<<
Correct me if I am wrong, but Bernanke did coin the phrase: 'extremely accommodating for an extended period.' Might have been Greenspin, but I don;t think so.
If you want to blame Clinton, Rubin, Summers, Phil Grahm, Greenspan (ARMs are a great idea), Sandy Weil, Franklin Raines, Geithner (as NY FED president), "W," Greenspan (again but under "W" - I do remember "W" slapping him on the back and pronouncing him "a good man"), Bernanke (appointed by "W"), Chris Dodd, and Barney Frank, you will get nothing but agreement from me. Just lay off my gal Brooksley Born.
Bernanke has had choices. He could have stiffed the foreign holders of US bonds. He could have made rates extremely unaccomodative for an extended period back in '04-'05 until the Mortgage Bankers Association started burning crosses on his lawn. Of course "W" wasn't encouraging such a course of action, I am sure. He could have and can stop bailing Geithner out through broker's brokers at Treasury auctions.
Yes Bernanke is in a pickle, which he inherited in part because of such "W" machinations as the war spending. Today's remedial actions are a conscious choice. Screw the seniors or screw the foreigners. Somebody undeserving will get screwed for this mess you can be sure. |
