A
Anonymous
Guest
I watched Bernanke testifying to the Senate yesterday..He said he believes we have nothing to worry about for inflation- rather deflation now- until the economy starts recovering which he believes will be in 2010...
Besides outlining several of the programs the Fed and Treasury are doing to get the economy moving- he was questioned often by the Senators about why we are propping up these bad banks- and giving money to people that made bad investments (thru TARP and Fed programs)- which many see as rewarding bad behavior....
He answered by saying many oversight and regulation mistakes were made... There are too many of these "too big to fail banks"- and thier downfall could take down the countries and global economy...
He characterized the bankers as like being a neighbor- that even tho he knows its wrong- smokes in bed...He sets his house on fire and runs to your house to have you call the Fire Dept...You could just let his house burn down and punish him for his bad habits--but you know you live in a neighborhood of closely built wooden houses- and if his house is left to burn, the whole neighborhood is likely to go...
So you call the Fire Dept to put out the fire--and then go to work on putting some laws and regulations with strong penalties for smoking in bed....
Besides outlining several of the programs the Fed and Treasury are doing to get the economy moving- he was questioned often by the Senators about why we are propping up these bad banks- and giving money to people that made bad investments (thru TARP and Fed programs)- which many see as rewarding bad behavior....
He answered by saying many oversight and regulation mistakes were made... There are too many of these "too big to fail banks"- and thier downfall could take down the countries and global economy...
He characterized the bankers as like being a neighbor- that even tho he knows its wrong- smokes in bed...He sets his house on fire and runs to your house to have you call the Fire Dept...You could just let his house burn down and punish him for his bad habits--but you know you live in a neighborhood of closely built wooden houses- and if his house is left to burn, the whole neighborhood is likely to go...
So you call the Fire Dept to put out the fire--and then go to work on putting some laws and regulations with strong penalties for smoking in bed....