Monday, July 20, 2009

Schwartz on Bernanke

Here's a sharp statement by Anna Schwartz regarding Bernanke's actions as Fed Chairman (HT Mankiw):
"What disturbed me particularly about Bernanke's performance was the insistence on bailouts," said Schwartz in a flood of passion. "If he had been absolutely candid to the markets and explained on what basis he would choose to bail out firms, and which ones he would not consider as meriting bailout, I think if the market had understood that he had principles and they would be able to understand a decision in light of these principles, there would have been much less bewilderment about why did they rescue Bear Stearns and pass over Lehman Brothers. Even though he has made a lot of rhetorical statements about the importance of transparency, he has not been transparent. I think that's a real failure. I think the Fed or the government has no business bailing out a firm that is not solvent."


Shalom P. Hamou said...

Read this article: "Ron Paul vs. Bernanke". It is well documented. illustrated with fun picture and video and accompanied with relevant quotes:

"I will argue here that, to the contrary, there is much that the Bank of Japan, in cooperation with other government agencies, could do to help promote economic recovery in Japan.

Most of my arguments will not be new to the policy board and staff of the BOJ, which of course has discussed these questions extensively.

However, their responses, when not confused or inconsistent, have generally relied on various technical or legal objections—- objections which, I will argue, could be overcome if the will to do so existed."

Prof. Benjamin Shalom Bernanke
Japanese Monetary Policy: A Case of Self-Induced Paralysis?
For presentation at the ASSA meetings, Boston MA,
January 9, 2000.

Read: Prepare for the Crash, The Age of Turbulence.

"Plea for a New World Economic Order."

Blog do Adolfo said...

It is very hard to understand Bernanke´s statement.... i can bet tath if Bernanke was still a professor at the university he would be blaming the bailout.