In contrast to Bernanke and many other dovish Fed members and certainly a differing a view of history from Alan Greenspan who today disabused his stewardship of monetary policy as being at fault for the credit bubble, voting member Fed Pres Hoenig said “I am confident that holding rates down at artificially low levels over extended periods encourages bubbles, because it encourages debt over equity and consumption over savings…While we may not know where the bubble will emerge, these conditions left unchanged will invite a credit boom and, inevitably, a bust.” It’s refreshing to hear so emphatically I must say.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Bernanke, Greenspan and you doves out there, take that!”

  1. swag says:

    I’m sure that by now you’ve seen Jim Grant’s brilliant rant on Greenspan’s “self-exculpation” – http://www.businessinsider.com/jim-grant-alan-greenspan-2010-4

    ~~~

    BR: That’s great, I’ll repost in the Video section