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Archive for August, 2009

The case against Bernanke

Reappointing Mr Ben Bernanke as head of the Fed is a mistake, as Stephen Roach correctly concludes in today’s FT. It seems though that Mr Roach is missing the point on Bernanke’s current action.

Mr Bernanke has been no better than Mr Alan Greenspan in understanding the driving forces for this, or any previous recessions and bubbles, and Bernanke is a student of the Great Depression, so he should know. A big driver has always been central bank actions, mostly the creation of cheap money – through low interest rates or as now through what they call quantitative easing. Printing money to you and me!
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