An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, February 26, 2013
Bernanke on the Rack
Sen. E. Warrren grills the Fed Chairman over "too big to fail".... 6 more years of this Ben, it's like a nightmare, finally someone who is not a complete moron in Congress now able to give you some informed pointed questions.... perhaps better to just resign and call it quits and spare the rest of us your continuous dispensation of out of paradigm monetarist dogma and fiscal ignorance.
Well in any case it is certainly entertaining to see Bernanke twist a bit. Video below from CNBC.
This is news here though where Bernanke reveals that it is now apparently Fed policy to "liquidate" the big banks if necessary due to a "failure" ... if that was what he was intending to reveal.
Hey Jamie Dimon, if Bernanke is serious you better start to harpoon your "whales" you fiscal moron!
Bernanke will put his record on inflation against anyone's. Sigh.
ReplyDeleteWarren Mosler asking Ben questions about US banking system would have been much better, but what can we do - American voters. :-(
ReplyDelete"This is news here though where Bernanke reveals that it is now apparently Fed policy to "liquidate" the big banks if necessary due to a "failure" ... if that was what he was intending to reveal."
ReplyDeleteCan anyone tell me if credit default swap spreads on any of the big banks widened on the heels of Bernanke's comments?
I cant say Ed but that was a bit stunning when I heard it...
ReplyDeleteBernanke said that now (vice 2008) he "has the tools" to be able to do it... I dont know what he is talking about... I dont see anything different from then to now other than perhaps some experience on the part of policymakers...
What is "failure" in this context anyway?
They can just grant regulatory forebearance forever... and the banks can still function..
rsp,