.....At least according to the investors who took a recent survey, as reported in this Bloomberg article.
Since Ben Bernanke took the helm of the Federal Reserve in 2006, the economy has been nothing but disaster. I will grant that it was the Federal Reserve policy under Alan Greenspan - easy money, cheap credit, stimulus and bailouts - that caused the current economic crisis.
Unfortunately, Bernanke is following the same policies of Greenspan times 10. How can he not understand that he is pursuing the same policies that caused the crisis? How can doing more of the same possibly fix the problem? One can only wonder.
Bad policy decisions aside, Bernanke is a PhD economist from MIT and former professor at Stanford, NYU and Princeton. He obviously knows what he's doing. Or does he?
Check out this video and see for yourself. My assessment? I'm working on raising an investment fund that makes investment decisions purely based on doing the exact opposite of what Bernanke says or recomends. This is in addition to the Anti-Jim Cramer fund I started a few years back...
On a final note, Bernanke addressed the House Finance Committe today on monetary policy, the Fed's exit strategy, etc. Ron Paul asked Bernanke to give his definition of inflation. Bernanke answered something to the effect that inflation was a rise in the level of consumer prices. I'm working on getting the clip/transcript to post this nonsense for all to see.
I'm going to address inflation in my next post, in Part 2 of the Inflation/Deflation debate.
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When do you think the fed funds and discount rates will rise above 3%? I think they'll stay below 1.5% as long as the current administration is in office.
ReplyDeleteDr. Doom
That's a good question. Considering the current rate is 0% to 0.25%, I think 3% will be a long time coming. Regardless of the Administration, how can they raise interest rates? With the economy likely still weak with high unemployment, the Fed will be very reluctant to raise interest rates. This is the conundrum they are in because the longer they wait, the worse the long term consequence.
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