Sunday, 2 September 2012

Lew Rockwell: Bernanke is increasing systemic risk

Following Ben Bernanke's speech on Friday, Lew Rockwell writes,

No banker is in right mind would make trillion dollar bets the way Bernanke has. He's supposed to be guarding against systemic risk, but his actions are amplifying it. Bernanke is a wonk (studious, hardworking, detail oriented). He thinks that by making a list of risks, he somehow knows what they all are and, after consulting some academic studies by his staff and others, can decide that these risks are manageable:
"the costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant. "
Ha-ha-ha. He's such a fool. He should be put in a room with $10,000 and made to speculate on one stock at a time. Let's see how far he gets with his approach.
 
 Couldn't agree more.

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