Shake Your Money Maker
Or so says Fed chief Ben Bernanke, declaring that another round of frenzied government spending might be necessary to keep the economy afloat because the most recent round of frenzied government spending – i.e. the Fed floating $600 billion in so-called “quantitative easing” a.k.a. QE2 – might not have done the trick.
This from POLITICO:
One reason why more economic stimulus might be needed is that the recovery is weak, said Bernanke. Asked whether the recovery was “self-sustaining,” he replied “ It may not be. It’s very close to the border — it takes about two and a half percent growth just to keep unemployment stable. And that’s about what we’re getting. We’re not very far from the level where the economy is not self-sustaining.”
So by all means, let’s throw more money at the problem. It’s worked so wonderful to this point.
I particularly like the part where Bernanke argues that the Fed does all of its own analysis, basing its policy decisions on what it thinks the economy needs, not political pressures. Then turns around and concedes the Fed hasn’t kept “a close enough eye on the financial system.”
Super. Take it away, Jimmy:
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