Quote:
Originally Posted by jyl
The Fed's problem is that while they have been doing their job of enabling the recovery through supportive monetary policy, for the past couple years Congress has been hurting the economy......
Bernanke has been repeatedly warning that fiscal policy has to start carrying its share of the load. He has come as close to chewing out Congress as he can......
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Not to downplay Congressional responsibility, but I think you give far too much credit to the Federal Reserve(past and present).
During Iwrek, Greenspan flooded the market with cheap money(fraudulent loans) which created the RE crisis.
"Oh look a puppy!"
Physical gold holdings are still believed missing as well.
Then Bernanke cleaned up this banking mess by printing $26T and giving it away without disclosure or audit.
An immediate crash at street level was avoided by pumping 0% interest rates to keep people spending.
But a 100% open tap wasn't enough, thus QE.
These policies greatly benefited a select few in NYC, but did nothing for the long term stability of the general economy or infrastructure.
Now stocks are being pumped again, and Bernanke's ilk are going to take their money and run.
The rest of us will just have to deal with it.