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Showing posts from June 16, 2008

Bernanke not to blame for America's economic woes

Business Times - 17 Jun 2008

By LEON HADAR
WASHINGTON CORRESPONDENT

AT first, the US Federal Reserve chairman was criticised for his slow response to the housing crisis and credit crunch, with critics arguing that he should have started cutting interest earlier on and more frequently.

In this narrative, in which Americans are losing their homes, going bankrupt and are in fear of losing their jobs, the boss of the US central bank emerged as the villain who is partly responsible for the ensuing economic downturn aka 'recession'. But now, Mr Bernanke is being criticised for the fact that he has been cutting interest rates too often and by too much. In this other narrative, dominated by rising energy and commodity prices, the Fed chairman is the villain who should be held accountable in one way or another for what looks to some observers as inflation.

While economists continue to debate whether we are now in a recession or are under the threat of inflation, or whether that old arch e…

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Checkout my TAC posts on politics,the election, and the Middle East.

And on Takimag.coma review of Pat Buchanan's new book on WWII and a review of a new film with Adam Sandler.