The kindergartener-style responsibility shirking of current and former Federal Reserve officials doesn’t pass the sniff test — and it doesn’t stand up to empirical study, either.
What is more, there is also the issue of just how much of the “global savings glut” factor was actually Fed induced, in other words, just how much of . . . → Read More: MONETARY MISTAKES & GLOBAL SAVINGS/INVESTMENT MISTAKES TOGETHER CREATED THE ARTIFICIAL BOOM
On the housing bubble and Bernanke’s Global Saving Glut Hypothesis.
Larry White is just asking. (pdf)
Why have macroeconomists maintained a narrow intellectual consensus in the face of massive, widely publicized intellectual failure?
Ruchir Sharma on the public turn against the Fed. Quotable:
monetary activism suffers from the same fundamental flaw as Keynesianism, in that it protects inefficient players instead of injecting renewed vigor into the economy. In a telling statement of the Fed’s thinking, New York Fed member Brian Slack recently said that, with luck, quantitative easing . . . → Read More: “THE TRIUMPH OF HAYEK”
100 years of the Federal Reserve — an assessment (pdf).
David Beckworth reports:
The FOMC minutes released today reveal a big change in terms of policy options being discussed by the Fed. For the first time the FOMC has discussed the possibility of targeting the level of NGDP. Here is the key excerpt (my bold):
With short-term nominal interest rates constrained by the zero bound, . . . → Read More: Blogosphere debate over NGDP targeting makes its way to the boardroom of the Federal Reserve
He’s not drinking the Krugman kool-aid. From the interview:
HRN: Is there a relationship between monetary expansion and the fact that the US economy depends so heavily on consumption?
Dr. Marc Faber: Basically, if you look at consumption as a percent of the economy and at housing activity, the excessive debt growth began essentially after . . . → Read More: Marc Faber on the current crisis
David Colander on how the National Science Foundation bankrolled the pseudo-scientific climate which made the Bush/Obama depression inevitable.
But let’s not also forget how the Federal Reserve has bought and paid for exactly the “scientific” community it wants.
Steve Hanke takes a look at the evidence and concludes that Alan Greenspan is simply b*llsh*tt*ng the public when he directs attention to a “global savings glut” and claims that the Federal Reserve has no responsibility for the current boom and bust cycle. Quotable:
What is a bubble? There are many types. One type is . . . → Read More: The “Global Savings Glut” Sham
John Stossel or Ben Bernanke? I’d suggest Stossel understands more that matters more. And Stossel’s track record isn’t as pathetic as Bernanke’s.
Don’t miss the related Bernanke YouTube video: