So we know the Fed missed the housing bubble and then underestimated its severity. Remember Greenspan’s (in)famous remark that “housing bubbles were local phenomena and present no risk to the greater economy”? We also know they underestimated the severity of job losses and the economic decline.
I guess the only question left after reading this is…..how can Bernanke be so sure of anything he is saying, especially when their recent track record at predicting future events has been stunningly more wrong than right? Shouldn’t he have a “Plan B”?
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2 replies on “Bernanke: “It’s All Good…..””
"Ah, but who will bell the cat?"
I wonder if the Fed is as independent (de facto) as is generally vaunted.
dont see how they could be…
they work hand in hand w/treasury who is VERY political