Friday, June 08, 2012

Ben Bernanke – A Bad Economist


Man Of Honor Resign

In a previous blog, I have already called for Bernanke’s immediate resignation so he can return to Princeton to teach economics. Hopefully, only few students will attend.

Were Frederic Bastiat Still Alive

In his famous essay titled “What Is Seen and What Is Not Seen” published in 1850, Frederic Bastiat wrote “There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen. “ (emphasis added). Ben Bernanke, honestly what economist would you say you are?

Bernanke has a long record of failed policies:
(1) He did not recognize the extent of the real estate bubble caused by extremely low key central bank interest rates, two federal government run mortgage companies and laughable lending standards
(2) Then he lowered these key interest rates again to ridiculous low levels for years to fuel speculation and to deprive investors of returns and to promote profligate fiscal spending through cheap lending.
(3) He engaged in failed bail outs of financial institutions and purchased government bonds thereby enormously inflating the central bank balance sheet.

I am sure, I am missing something.

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