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Debate On Bernanke's Performance

Friday, February 11, 2011 - 6:03 AM
From the view of many of us savers, Bernanke has kept rates too low for too long. Thomas Hoenig who was the lone dissenter on the Fed last year seemed to be more reasonable for savers.

From a pure economics point-of-view, some argue there are reasons to praise Bernanke. This is the case that Calculated Risk described in his post: I come to praise Bernanke.

However, that case was argued by Mish in his Global Economic Trend Analysis blog post, Calculated Risk vs. Ron Paul on Soviet Style Central Planning

Many now argue that Bernanke's actions at the height of the 2008 financial crisis helped prevent a depression. That too is debated by Mish:
One can argue that things would be worse if Bernanke did not act but that is speculation. Had Bernanke not acted, bondholders would not have been bailed out, too big to fail would have bitten the dust and we would have had a chance for someone like Bill Black to come in, remove all the bank boards of directors, and put in sound management.

Instead, we bailed out the banks at taxpayer expense, the "too big to fail" got even bigger, we did not reinstall Glass-Steagall (one piece of regulation I am in favor of), nor did we tackle any fundamental issues that caused the crisis.

2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Friday, February 11, 2011 - 10:16 AM
No matter what Bernanke does or does not do there will be people that will like him and there will be people that dislike him.
2
dpandslemmendpandslemmen28 posts since
Feb 10, 2011
Rep Points: 118
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