The Federal Reserve Has Become Irrelevant
Tuesday, March 4, 2008 at 11:53PM By John Hoefle / Executive Intelligence Review
Could they really be that stupid? That is the question which comes to mind watching the recent spate of statements by government officials discussing what they see as the problems facing the economy, and what needs to be done to solve them. Rather than admitting the global financial system has failed, and must be put through bankruptcy, they blather on about whether or not we have entered into a recession, and about the need to protect asset values from the effects of what they prefer to call the "housing crisis."
Take the case of poor Ben Bernanke, who had the misfortune of taking over as chairman of the Federal Reserve just in time for the worst financial crash in six centuries. Bernanke has a reputation for being an expert on the Crash of 1929 and the banking problems which surrounded it, but judging from his public statements, he still believes we are in the midst of a housing crisis.
"Many of the challenges now facing our economy stem from the continuing contraction of the U.S. housing market," Bernanke told the House Committee on Financial Services in his Feb. 27, Semiannual Monetary Report to Congress.
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