I don't think I blamed Bush for anything. He was in office when the music stopped and the bubble burst. Was just saying that Bernanke did what he thought had to be done regardless of who is in power.
I do not necessarily agree with rounds 2 and 3 of QE. That being said it has done more to stabilize the economy than anything any of the politicians have done.
AIG is a lot more than a company that wrote a ton of derivatives that they could not back up when the bubble burst. It is also the largest insurer in the world. If they let them fail Lehman would have looked like a minor event.
The Fed I really think wants to be non-partisan. Not every decision they make is going to be perfect. People will look back in twenty years and I think will look favorably on the extraordinary actions the Fed took. Without their actions I believe we would have had a real depression.
Perhaps you think that saving the Obama administration from reigning over a depression is OK as it would make him look bad. But you have to think about what that would have meant to the country, with countless millions of Americans in worse shape than they are now in.
You didn't, but it's the typical MO for allot of these posters when trying to justify Obama's incompetence.
I don't begrudge, or dislike Bernake, he's in one hell of a spot but he's on his third round of QE for a good reason and I think the majority of Americans are clueless to the long term damage he's doing by continuing it.
When millions of low information voters elected a media creation, a stuffed suite with a teleprompter with a very radical ideology I knew we were screwed. There is NOTHING the Central Bank can do to counter the destructive underpinnings of Obama's policies. Massive liquidity and loading up the Central bank with over a Trillion in toxic MBSs while denying the policies that are the source of our extended recession is extremely irresponsible. I can't tell if Bernake is a true Post-Keynesian believer or he's just throwing everything at the problem knowing it won't do a bit of good.
QE hasn't had the desired effect because of the left's ideological tunnel vision and their refusal to admit their ideology doesn't work in the real world. Obama brought in Economist from Harvard in 2008 that foolishly applied 800 billion dollars and not once looked past their stupid philosophy, the one that only works in a vacuum.
We had a taste of what's going to happen when Bernake actually stops QE this week. It's real simple, massively overvalued assets, equities and bonds being sold off as fast as possible and a sharp rise in Bond Yields. The banks holding record reserves, getting paid interest on those reserves since 2008, and not enough private sector activity to counter the rising inflation.
I mean how could there be ? When interest rates shoot up after he declares QE3 over the banks that aren't lending will still not lend. Our borrowing cost will spike as short term Treasuries which the FED owns the lions share mature.( It's the problem with financing debt with short term bonds )
High Interest rates will kill what little activity is in the housing market as mortgage rates rise and then we'll be nearly 20 Trillion in debt, we'll have a stifled private sector, a shrinking economy and a President who pats himself on the back everyday and it will happen right as America wakes up to the disaster that is Obama care when they're forced to purchase something or pay the Federal Govt.
And still, nothings been done to address our stagnating economy.....minus the monopoly money it's actually shrinking. Detroit is actually considering letting it's bond holders and it's creditors take a bath and lose their principle. Now the ignorant "eat the rich" posters might think that's really cool but it's just because they cannot understand the far reaching implication of even one City sticking it to their bond holders.
No, there is no recovery, just Obama's biggest Lie yet and I've never agreed with Bernake's QE. I knew it wouldn't really make any difference in lowering the unemployment rate because it's effects are isolated. It's NOT the job of the Central Bank to directly effect unemployment.