Another Critical Look at the Fed

By on January 10, 2010

David Leonhardt questions whether the Fed, led by Ben Bernanke, is capable of seeing a bubble in advance of its bursting, let alone do anything to stop it. This is a legitimate question as the Fed seeks more power to regulate markets.

Bernanke has demonstrated a curious lack of introspection in failing to attempt to stop the biggest bubble in the history of the world when he was a lackey of Alan Greenspan (in charge at the time). The eventual collapse in the housing market caused untold miseries on millions of families.

SMA Comment: It’s hard to believe Ben Bernanke couldn’t see the housing market was out of control as Leonhardt suggests. Anyone with an elementary understanding of statistics and history could see it. Bernanke must have been worried about panicking the market when he said all was well, which in the end didn’t do anyone any favors.

Source: The New York Times
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