As reported on Friday and displayed last night on 60 Minutes, Bernanke said if $600b of asset purchases doesn’t do the job, then he’ll keep on buying more. Rather than being comforted by his belief that he’ll stand ready to act again, it should be alarming that he still thinks that printing money and artificially suppressing interest rates is somehow the right strategy for fixing what ails us. Deleveraging, saving and time is the only prudent way out. I know you’ve heard this from me many times in the past and sorry for continuing to whine about it but his appearance on national TV in order to defend himself against global criticism for his policies compelled me to say it again. Ahead of a meeting of European Finance Ministers today, disagreement still reigns amongst the group of what steps next to take with the size of the current facility and what to do with future debt restructurings.
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