Perdido 03

Perdido 03

Monday, January 4, 2010

Talk About Passing The Buck

Ben Bernanke said in a speech over the weekend that low interest rates didn't cause the housing bubble.

Instead he said lack of regulation caused it.

Uh, huh.

As a voting member of the Federal Reserve, Bernanke rubber-stamped ever Alan Greenspan move on money policy. That includes really cheap rates. Now it is true that a slew of financial innovations in mortgages allowing people to borrow money with little to no principle, to lie about their income and never get called on it, or to buy a house with mortgages payments that only pay interest helped bring about the bubble.

But so did really, really low rates. ARM's don't happen when interest rates are high.

Boy, it's a good thing President Obama has reappointed Ben Bernanke to the Federal Reserve for another term.

I mean, who doesn't want a guy who can't take responsibility for his own mistakes in charge of monetary policy for the U.S.

Silly me - accountability is for teachers, not Federal Reserve Open Market Committee members.

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