Re: [Pen-l] Larry is still at it

[Jim Devine <jdevine03@xxxxxxxxx>]

Michael Perelman wrote:
> I always admired Bernanke, the economist. I would have thought that he [at
> least before he associated himself with GWB] would have been an ideal Fed
> chair at a time like this. Has he stood up to any of the big banks yet?

He probably doesn't see "standing up to big banks" as part of his job
description. He's at least partly right.

It definitely isn't part of the monetary policy process (while a lot
of the policies of the Reserve Banks is largely determined by the
banks themselves). Most of the other Fed policies are on the level of
insuring money market accounts and the like, not dealing with big
banks. That is, they're more structural. (Of course, the Fed did end
up with Bear Sterns' toxic assets.)

Raghu is right, of course, that Bernanke's policies about the bubble
and the bust have been bad, but that's not really about standing up to
the big banks. It's more a refusal to stand up to the financial
orthodoxy. That orthodoxy was endemic, not just an ideology of big
banks.

It's Geithner (who's organize the bail-out) who should be standing up
to big financial institutions.
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
_______________________________________________
pen-l mailing list
pen-l@xxxxxxxxxxxxxxxxxx
https://lists.csuchico.edu/mailman/listinfo/pen-l