Bernanke's legacy? Stylin' for bald guys.
Bernanke's legacy?It's interesting to note how much a
legacy improves with the ability for one to hire sympathetic authors who will
put enough political/historical lipstick on anyone...for a price...of
course...to attempt to salvage a persons legacy.
"...Whatever the institution’s failings, or Bernanke’s, few can
deny that the Federal Reserve provides a strong institutional ballast against
the inherent fluctuations of a market economy."Your view is a
Milton Friedman was speaking for Republicans when he said, "We're all
Keynesians now." That includes the DN editors, apparently. If you're a
Keynesian, you probably think Bernanke has been absolutely brilliant.
Non-Keynesians are not so impressed. In fact, from my perspective, he's
been a disaster. He's a Keynesian on steroids. He has created a
ticking time-bomb that, when it finally goes off, will make the Great Depression
look like a minor recession. That's because it will impact the world-wide
economy, not just the American economy. He's painted the Fed into a corner
with no way out. The Fed is forced to keep interest rates near zero and to prop
up zombie businesses. At some point in the not-too-distant future, I expect
those tools to be rendered ineffective, leaving the Fed out of ammo. Then
we're on our own with no lender of last resort. The strategy employed by
the Fed has been unsustainable. Maybe Bernanke is thinking that Keynes was right
about one thing: in the long run, we're all dead.
I think few folks are pure Keynesians today. I certainly am not.But
was Bernanke brilliant? At this point, it sure seems like it.
A couple more years and we will see the fruits of Bernanke's Quantitative
Easing (money printing). We are in a situation where the FED cannot stop
printing money or everything collapses, the only alternative is to continue
printing money until it does collapse. It is just a matter of time.
RE: Sey "The Fed is forced to keep interest rates near zero and to prop up
zombie businesses." Exactly so. What would things be like of the Fed
weren't doing to propping? Answer: we would be in depression. Capitalism
is rough shape these days. Only desperate measures by government keep it going.
This can't go on forever. What then?