begins with recognizing you have a problem. Bruce Krasting reports that recovery might be a long way off:
In this week’s lecture tour at George Washington U, Bernanke spoke to the students about the causes of the economic collapse of 2008. In his presentation, he identified most of the bad actors and the mistakes that those institutions made. He pointed his finger at:
at long list of banks, public-private hybrids (other than the Fed), speculators, borrowers, and financial instruments.
Bernanke never acknowledged that the Fed contributed to the mess of 2008. If Ben wasn’t flat out lying, his head is buried very deeply in the sand.
On a related note the BEA reported that spending rose .8% while incomes incomes rose .3% last month. If that’s deleveraging it’s certainly not by means of saving but by means of foreclosure which doesn’t produce the behaviors that our economy needs to recover.
It would help if Bernanke had identified academia as a big part of the problem, as well as himself and other Fed officials for not levelling with the american people and our politicians regarding how the banking system functions. If the public understood that banks literally create debt and money from nothing, how much of an effect do you think that would have on the way we do business in this country?