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I’m all for having regular guys and gals in high office. But this is too much.
The New York Times reported this anecdote in a story about Federal Research Chair Ben Bernanke lobbying against bills aimed at the Fed:
“At one recent meeting, Senator Sherrod Brown challenged Mr. Bernanke’s bona fides as a regular guy by giving him a pop quiz on baseball statistics. Mr. Bernanke, a passionate fan, passed.”
I like baseball. I stayed up way past my bedtime to watch the Yankees win the series. But I don’t care if the chairman of the Fed knows the first thing about baseball. Instead, I hope he knows something about the economy and interest rates.


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2 comments on “Populism Run Amok

  1. -1 says:

    He knows interest rates and money supply.Everyone who studies economics knows that now.The real problem was when the Fed kept interest rates too low for too long after 9/11.When a financial institution can borrow money for basically zero and loan for 4 to 8% Katie bar the door.When down payments are lowered on home purchases from 20% to 0 that makes the value of the home go up.Because demand is created.And of course the increased demand allows financial institutions to then loan to less qualified purchasers.This is financial portfolio theory.Then the derivatives needed to be created to protect the issuer of the mortgages and the eventual owner of the mortgages which were packaged,rated and sold in the form of bonds,CDO’s and REIT’s.
    When some of the packaged mortgages began to not perform(pay) then there was an over response from the government.The bailout of banks “to big to fail.”There is nothing wrong with stabilizing the banking system.However once that was done the correct response to the failing packaged mortgages and derivatives was to isolate them and work them out over time.Good bank bad bank..Much like the S&L CRISIS IN THE LATE 80’S EARLY 90’S.
    The Obama response has been to take over entire industries,raise taxes,create huge government programs and vilify businessmen and capitalism itself.Now the Obama admin has crowdeed out private investment because the private sectors money is going to the government in the form of taxes and fees.The interest is still effectively zero and the uncertainty the future holds has stiffled smal business creation and expansion.The real job creator in our economy.The result will be a weak dollar.High inflation and a standard of living that will be steadily declining.Just what a socialist wants.Then more of the unfortunate can rise up and demand more government help.
    I beleive the vail has been lifted and this admin will be unceremoniously kicked out next several elections.
    Obama has called for a jobs summit.With all the brain power in the Obama admin no one can think of how to create jobs.Newsflash-the private sector creates them-lower taxes get out of the way and watch America grow.
    Quit apologizing all over the world-we have nothing to apologize for-we are the last people on Earth who can save it from faschism,socialism and despotism.

  2. Foster Sampson Wilder says:

    Gary: I don’t necessarily agree with the conclusions Rush has given but his analysis is pretty much right on target. He did leave out specifically naming George W’s administration after 9/11 but his synopsis is correct. The banking industry needed to be stabilized. Once it was, we needed to correct the overzealous accounting methods that led to the freefall as much as the bad loans themselves. Instead, we see the government talking out of both sides of their mouths. Tightening credit regulations while publically telling banks to lend more? We are killing small business and rewarding large government contractors and defending the move by using supply side economics (reaganomics, trickle down) to explain how the surplus money will filter to small businesses. This has been proven wrong once again. I always find it ironic when one party proves a theory wrong then re-implements it when it gets in power.

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