« Fred Wilson and the Venture Capital (Non-)Cartel | Main | Econ bloggers give DC mixed marks (a.k.a. Congress gets an F) »

January 27, 2010


TrackBack URL for this entry:

Listed below are links to weblogs that reference The Value of Bernanke's Reconfirmation:


shut up. STUPID!

Are you guys Keynesians?

As much as Bernanke understands the economic climate and what may be needed to bring back a period of sustained growth. I myself think that a complete overview of the fiscal system is in order. The very essence of money is prone to inflation. Tie in other factors like interest and debt and it's easy to see that we'll continue to live in periods of boom and bust whoever is in charge of the Fereral Reserve.

from health care to less job opportunities, america is now facing a lot of problems that need to resolve.

I am more of a Schumpeterian than a Keynesian. Can government make effective counter0cyclical policy? I would say yes with two strong conditions. First, the cycle must be long enough so that policy can be implemented in time. This is best done with auto-stabilizers rather than discretionary policy. Second, deficit tax cuts can be effective in ways that spending cannot. In other words, much government spending in the name of counteracting economic downturns is actually counter-productive. It locks in old industrial structures (e.g. GM bailout and Wall Street bailouts), and often filters through ineffective limitations that are not in Keynesian models (e.g. Davis bacon laws).

But this is all beside the point, no? Opinion in favor of an independent central bank is vastly larger than the school of JM Keynes.

In my book Bernanke deserves to be fired for guaranteeing Bear Stearn's debt, that's a 29 billion dollar present from you and me to the bondholders and shareholders of a private company. No one should have to ability to make a gift like that with taxpayer dollars. And he didn't do it just once, he did it 2 more times that I know of; 300 billion in guarantees of the worst of Citibank's toxic assets, and another 100 billion or so in guarantees of the worst of Bank of America's toxic assets. So, a 429 Billion dollar present of taxpayer money to the rich and wel connected complements of Ben Bernanke. And those are just the most egregious ones. I understand he is giving out non-recourse loans toxic assets from a number of banks, with the valuation levels chosen by the banks themselves. Who doubts that they are choosing 100 cents on the dollar for dreck that they couldn't sell for 10 cents on the dollar? Who is going to be surprised when they 'strategically default' in a year or so, and walk away clean?

And don't be mislead that it isn't US taxpayer dollars that are being given away here. It is an accounting fiction that it is Federal Reserve dollars that are being spent here, but all profits (and loses) of the Federal Reserve are borne by the Treasury. In the past of course, it was modest profits that were turned over each year, reflecting the interest on Treasury bills that the Fed was holding, less their expenses. Get ready for those modest profits to turn into massive losses.

Bernanke has turned the Fed into a money machine to be looted for private profit.

t is pretty certain that the Replica handbags you are looking for is a must-have handbag. Of course, who doesn't and not especially if it's one of the

When an end is lawful and obligatory, the indispensable means to is are also lawful and obligatory .Do you understand?

these are times with more liberty,but less joy; we have much more food,but less nutrition;who could told me why?

All of us have the ability to adapt our own story.

All of us have the ability to adapt our own story.

Count your age with friends but not with years. Good luck to you!!

Efox-Shop, dass Sie bietet alle Arten von bevorzugten Produkte wie mp3 player
China ipad, opel diagnose tool,flash player und Epad mit hoher Qualität, Mode-Stil und konkurrenzfähigen Preis in http://www.efox-shop.com.

I like your blog,and also like the article,and thank you for provide me so much information :))

I find life an exciting business,The point is succinctness of expression.

I find life an exciting business,The point is succinctness of expression.

The comments to this entry are closed.