And as for interest rates, Greenspan had been raising them regularly for quite some time.
Bernanke's confirmation cannot be identified via the data on either of these graphs. He simply continued existing policy, as his role as designated fall guy.
Posted on 01/03/2010 10:42:06 AM PST by nickcarraway
The U.S. Federal Reserve must be open to raising interest rates to pop future asset bubbles, even though stronger regulation remains the best solution to prevent a repeat of the crisis, the Fed chief said Sunday.
Fed Chairman Ben Bernanke said all efforts should be made to strengthen the U.S. regulatory system to prevent a repeat of a financial crisis that Bernanke described as possibly the worst in modern history.
(Excerpt) Read more at online.wsj.com ...
Better yet, Congress should stop creating bubbles with its various subsidies.
“...the worst in modern history...”
Maybe the worst in all history, before it is over. Sounds like the economy will go Carteresque before getting completely nightmarish. Who knows? Carter was the double digit disaster. Obamao might be the triple digit apocalypse. We have three years to go.
I smell inflation....
Oh brother, let’s see if he has the guts to do what his buddie Greenspan didnt, and kill off the so called ‘recovery’/bubble his printing press creates.
At the time no one wanted that until it was too late. Energy and Food prices skyrocketed too.
worse yet; stagflation
The Fed is a bubble machine.
ping not my post but I was waiting for this to happen.
He talks a good game but he won’t pull the trigger as long as unemployment is high, especially in an election year.
They like to pretend the Fed is not political, but have no doubts, it is.
Bernanke raised rates and stopped growing M1 right after he became chairman.
I’m licking my chops (sort of) as the feds offered 18% 30 year treasuries for a bit in the early 80’s. I would have been set for life had I bought some of those, then. But it felt like the economy was done for. I think that I will buy if I see 18% again.
I don’t think Treasuries are calleable, but I bet they did something to sop those high interest Ts up. If any are still outstanding, they would be maturing in the last couple few years too.
And as for interest rates, Greenspan had been raising them regularly for quite some time.
Bernanke's confirmation cannot be identified via the data on either of these graphs. He simply continued existing policy, as his role as designated fall guy.
related story:
Low rates didn’t cause bubble, Bernanke says
Lax supervision of toxic mortgages was bigger cause, Fed chief says
(cannot excerpt — MarketWatch is a subsidiary of WSJ)
http://www.marketwatch.com/story/low-rates-didnt-cause-bubble-bernanke-says-2010-01-03
Basically, he blames easy access to easy money, not the easy money itself.
And he held it flat for another 2.5 years.
And as for interest rates, Greenspan had been raising them regularly for quite some time.
Yup.
even though stronger regulation remains the best solution
Consider the following price increases which have occurred since the beginning of the financial crisis in October 2007.
In the 24 month period since then, a time when deflation was supposedly striking everywhere …
* Food and beverage prices increased an average of 5.6%
* Cereal and bakery prices jumped 11.5%
* Sugar and sweets prices, up 11.8%
* Cooking oils, up 11.6%
Meanwhile …
* The cost of medical care increased an average of 6.7%
* Medical care services, up 7.1%
* Hospital services, up 14.0%
* The cost of education (tuition) at private schools jumped 10.7%
* Educational books and supplies, up 14.9%
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