Busted: Bankers and The Global Economy

October 15, 2008

Bernanke Pessimistic About U.S. Political Plans

Ben Bernanke is no longer being vague about his opinions. Bernanke indicated that the U.S. economy is certain to worsen. He suggested the possibility of further interest-rate cuts to lower rates while criticizing economic-rescue plans of both major presidential candidates.

At a question and answer session after his speech, Bernanke reflected on the handling of the Great Depression, saying that Franklin Roosevelt’s fiscal stimulus failed to end the economic troubles after Roosevelt took office. Stimulus spending suggested by Democratic presidential nominee Barack Obama and tax cuts proposed by Republican candidate John McCain are unlikely to end the crisis. Bernanke noted that World War II began to pull the nation from depression because it mobilized the nation.

Monetary policy including capitalizing banks has limits in his eyes. Bernanke is now promoting new regulations to avoid a repeat of problems that the nation is currently enduring. That undoubtedly means new powers for the Fed. ~ E. Manning


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