{"id":240146,"date":"2010-01-28T02:31:55","date_gmt":"2010-01-28T07:31:55","guid":{"rendered":"http:\/\/www.szone.us\/f96\/bernanke-too-big-not-fail-38707\/"},"modified":"2010-01-28T02:31:55","modified_gmt":"2010-01-28T07:31:55","slug":"bernanke-too-big-not-to-fail","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/240146","title":{"rendered":"Bernanke: Too Big Not to Fail"},"content":{"rendered":"<div>01.27.10 03:20 PM posted by scottspiegel<\/p>\n<p>Critics of Federal Reserve Chairman Ben Bernanke\u0092s performance in his first term blame him for failing to recognize the threat of the looming subprime lending crisis; his supporters laud the aggressive policies he enacted in response to the crisis.<\/p>\n<p> I fault him for both.<\/p>\n<p> Before the crisis, Bernanke helped Fannie Mae and Freddie Mac executives cover up their scheme to hide trillions of dollars in junk mortgages and give themselves enormous bonuses.  In the process, he failed to address the growing housing bubble that precipitated the financial crisis.<\/p>\n<p> His solution was worse.  Having learned the wrong lesson from the Great Depression\u0097that the government prolonged it by not intervening more, rather than intervening too much\u0097Bernanke radically expanded government\u0092s power and \u0093reinvented the Fed,\u0094 as Time magazine put it mildly in their recent cover story on Bernanke.<\/p>\n<p> Time glowingly continued: \u0093[H]e conjured up trillions of new dollars and blasted them into the economy; engineered massive public rescues of failing private companies\u0085 lent to mutual funds, hedge funds, foreign banks, investment banks, manufacturers, insurers and other borrowers who had never dreamed of receiving Fed cash\u0085 revolutionized housing finance with a breathtaking shopping spree for mortgage bonds; blew up the Fed\u0092s balance sheet to three times its previous size; and generally transformed the staid arena of central banking into a stage for desperate improvisation.\u0094<\/p>\n<p> \u0093Conjured up,\u0094 \u0093blasted,\u0094 \u0093engineered,\u0094 \u0093revolutionized,\u0094 \u0093breathtaking,\u0094 \u0093shopping spree,\u0094 \u0093blew up,\u0094 \u0093desperate improvisation\u0094\u0097somehow these don\u0092t sound like particularly reassuring terms for investors in the world\u0092s largest financial system. <a href=\"http:\/\/www.conservativeoutpost.com\/bernanke_too_big_not_fail\" ><b> read more &amp;raquo;<\/b><\/a><\/p>\n<p><a href=\"http:\/\/www.conservativeoutpost.com\/bernanke_too_big_not_fail\" >http:\/\/www.conservativeoutpost.com\/b&#8230;o_big_not_fail<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>01.27.10 03:20 PM posted by scottspiegel Critics of Federal Reserve Chairman Ben Bernanke\u0092s performance in his first term blame him for failing to recognize the threat of the looming subprime lending crisis; his supporters laud the aggressive policies he enacted in response to the crisis. I fault him for both. Before the crisis, Bernanke helped [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-240146","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/240146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=240146"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/240146\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=240146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=240146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=240146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}