What is wrong with Bernanke?

What is wrong with Bernanke? He and Paulson must be the only people in America who think we don’t have enough debt. Our financial problems are not the result of a lack of credit. But today he unleashed $800 billion to “unfreeze” (other known as thawing) credit markets.

The problem is with the financial system is not a lack of credit. The banks have money, but they are sitting on it. People don’t want to make investments when they are this concerned about the overall situtation with the economy.

The problem is not liquidity. The problem is uncertainty. Just yesterday the Fed had to rescue Citibank. That doesn’t instill the confidence necessary to take risks. Until we have more confidence in the economy, credit markets are going to remain frozen. The Fed can do whatever it wants, but it won’t matter (other than hurt us down the road when inflation takes off because of the Feds actions).

One thought on “What is wrong with Bernanke?

  1. rick

    It is amazing that Bernanke testified and said that he failed and that the free market idea doesn’t work. I think he got just far enough for it to not work.

    What we need now is full funding for students going to high school and college. We need to give these students stipends and have them graduate with no debt. We need easily obtained small business loans. We need the bankruptcy laws changed so people can keep their house and lessen their credit debt(1st houses, if you don’t know about this research it).

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