For Bernanke, central bankers were the heroes. In the face of irrational hordes, they offered liquidity and a host of innovative policies, ensuring that financial panic did not lead to a new Great Depression. In Bernanke’s word, “the outcome could have been decidedly worse”.
His assessment isn’t exactly wrong. But as a historical record it is incomplete and far too generous to central bankers. (via Ben Bernanke’s version of history is incomplete – Telegraph).
It ain’t the first time
Helicopter Ben has a way with history. Earlier he created the concept of ‘savings glut’ – thinly blaming China ( and others) for saving money! He explained how,
“a significant increase in the global supply of saving–a global saving glut–which helps to explain both the increase in the U.S. current account deficit and the relatively low level of long-term real interest rates in the world today.”
This time around he was congratulating Central Bankers and policymakers
“in the United States and around the globe responded with speed and force to arrest a rapidly deteriorating and dangerous situation.”
Awesome! The man is so brazen! He has no shame!!
Of course, he makes no mention how the current Great Recession first came about by printing too much money – and then keeping interests low. Edward Hadas is right in one thing at least! He says, “Those who spread kerosene should not take too much credit for putting out fires.”
Benny Boy – That is good advice. Take it.
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