Why bernanke fired

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I ask with no sarcasm, I am genuinely curious as to what his mistakes have been. It seems to me that Bernanke inherited a time bomb in the housing bubble. When the crises hit, he reacted the only way a man mainstream enough to become chairman would have: print money and bail out anything that moves except those a-holes at Lehman!

I am still moving to Europe and advising my friends to watch the Mad Max films for their educational value, but could we really expect the FED to react any differently? Yes, one should send a message but what message? A firing from Obama might suggest that Bernanke did not do enough nationalizing. The first thing Dr. Paul would do would be to close down the Fed. The second thing he would do would be to tender his resignation. Might that sort of message inhibit future results?

Like some commentators before me have noted I think Mr. O, they would have acted any differently. Sure, in Mr. The fact of the matter is Mr. To simply say that he failed without any discussion of his policies is not fair to Mr. Bernanke nor to any economist willing to become involved in a difficult situation.

If we are going to find our way out of our current dilema, we need to identify good and bad policies rather than create villians. That, by the way, is why I like your blog so much. You generally do a good job in that regard. Personally, I place most of the blame for current failures on policies of both the Bush and Obama administrations and on congress which has proven to be economically clueless.

Bernanke was far too involved in the aftermath, his monetary policy decisions are another matter. Looking back, I would say that the work of the Fed and Treasury did avert a banking collapse, which I believe is one of Mr.

I also think the loose monetary policies, economic stimuli and unabated deficit spending leave us with future choices between the tradeoffs of uncontrolled inflation and extremely high interest rates. These will not be pleasant and will be far worse than what we saw in the late seventies and early eighties.

Only time will tell how this will play out, but the time to prevent it was about ten years ago and we now have to live with the decisions that got us here. In the mean time, I have no interest in replacing Mr.

Bernanke unless I know what message is being sent or his replacement will be better. I am more concerned with taking the Fed, which is privately owned like Fannie and Freddie, and making it one of the key financial regulating bodies in the future. Talk about the potential for unintended consequences. I have a bad habit of throwing out opinions before reading the links behind blogs.

The two links in this case were very good and elaborated on the points that I thought were missing. I will say that I am much less concerned about federal reserve policy than bailouts and uncontrolled government spending but that does not make it unimportant.

So, that's why I started like that. For you. World globe An icon of the world globe, indicating different international options. Get the Insider App. Click here to learn more. A leading-edge research firm focused on digital transformation. Good Subscriber Account active since Shortcuts. Account icon An icon in the shape of a person's head and shoulders.