Bell Curve The Law Talking Guy Raised by Republicans U.S. West
Well, he's kind of had it in for me ever since I accidentally ran over his dog. Actually, replace "accidentally" with "repeatedly," and replace "dog" with "son."

Tuesday, July 08, 2008

President Bernanke

Continuing its unprecedented efforts to stabilize the financial markets, the Federal Reserve will implement next week a series of regulatory changes designed to end the most egregious misbehavior of mortgage lenders. A scholar of the Great Depression, Federal Reserve Chairman Ben Bernanke knows well the failures of past Federal Reserve activity and he is determined to chart a better course amid the current crisis.

Today, Bernanke proposed new legislation to formalize some of the ad hoc procedures undertaken by the Fed in February and March. Meanwhile, the Bush administration's
"Paulson Plan" would restructure the eighty-five year old financial system in a way that would end daily supervision of large banks by the Federal Reserve. Bernanke warned Congress that ending such supervision would effectively prevent the Fed from doing its job. For Bush to propose restructuring the financial system without consulting the Federal Reserve Chair is foolish enough, but to hamstring the only Republican in Washington who is actually doing something about the financial crisis is almost criminal.

No matter what you think of the Bear Stearns "bailout" in the larger sense of economic justice, Bernanke certainly did his job. Despite some early hesitancy, Bernanke has learned from his mistakes. Unlike our actual President, who has been worse than useless, Bernanke has acted boldly and creatively, stepping into the void and doing whatever he can to help. Compared to Alan Greenspan's aloof and smug indifference in the face of financial firestorms, Bernanke's humble willingness to man the bucket line is refreshing.


The Law Talking Guy said...

The "Paulson Plan" is just another sop to the banking industry. I'm shocked, shocked, that the Republican party is acting this way...

Spotted Handfish said...

I'm sorry, LTG, how exactly can you be shocked by the GOP?

I agree with Dr S about Ben Bernanke. Unfortunately he has to clean up the mess made under Greenspan's watch. The lag on these things is in the years not weeks.

If (when) Obama wins, he'll get the blame for the mess created by Bush printing more money and the ongoing pain resulting from Greenspan doing nothing. I say this noting that ex-Aus-PM Howard has just claimed the current-PM Rudd has no shame for saying they inherited the current economic problems in Australia. I just hope no-one buys it.

The Law Talking Guy said...

I was quoting Casablanca. Sorry. (I'm shocked, shocked, to find gambling here!). Of course, the prefect of police wasn't shocked at all, as he was gambling at the time. Neither am I shocked

USwest said...

They printed money under Bush I. Remeber the Savings and Loan crisis? The current crisis and that one are linked. They save their own and let the rest of us suffer. Welcome to the world's most powerful Banana Republic.

Republicans don't like getting their hands dirty with hard work, but they don't mind dumping crap on everyone else. I hope Bernake succeeds. But, as my friend in the business has long told me, the bankers are in charge now.

What gets me is how blantant they are about the abuses they commit. I am sort of reminded of France in about 1787.

The FED can be more indpendan the treasury. Paulsen is a cabinet member. He will push the White House agenda, regardless.

Spotted Handfish said...

Ah Casablanca! I should have spotted. Watching the film would probably help in that endeavour. Could you please, in future references to the US Federal Reserve only quote other classics such as Die Hard? (It was how I learnt about bearer bonds...)

The Law Talking Guy said...

You absolutely must watch Casablanca! Do it now. If you're not in love with Ingrid Bergman within the first hour, you're not long for this world.