Bernanke, Greenspan and you doves out there, take that!

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.

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