The market isn’t listening to the Fed
Bob Morris @ Jul 23rd 2007 00:12 - Category: Credit crisis
The dollar dropped to a record low versus the euro and the weakest in 26 years versus the pound on speculation losses from subprime mortgages will worsen the U.S. economic outlook.
Yet Bernanke sees little impact from subprime loan losses. Clearly, the market disagrees with him.
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DJ on 23 Jul 2007 at 10:09 am #
I have always been concerned that Bernanke is the hand-picked flunky of the Bush administration, ready to say what they want to hear rather than what is really going on. I didn’t always agree with Greenspan, but I trusted him. I don’t trust Bernanke as far as I can fling his microphone.
The strong Fed and the corresponding institution of conservative economic policy by Jimmy Carter have been one of the key accomplishments of the Democratic Party. IMO, it ranks with Eisenhower’s creation of the interstate system as one of the two key innovations that made our nation what it is today.
Destroying the Fed’s effectiveness and returning to Keynesian stagflation insanity would be a big (and liberal) coup for our fine President.