Ben Bernanke: Taking Credit for the Good and Not the Bad

With Fed Chairman Ben Bernanke testifying today before the house budget committee let’s take a look back at what has transpired since QE2 was first rumored. Rumors of QE2 started last August at the Fed’s annual Jackson Hole meeting but didn’t officially start until November. Prior to the official announcement the New York Fed’s Brian [...]

Sweden’s Central Bank is Still Ahead of the Curve

In the early 1990′s Sweden had a financial crisis not unlike the U.S. financial crisis of 2008/2009. With its banking system effectively insolvent Swedish officials pursued a different strategy than the U.S. bailout model. The equity holders in Swedish banks were for the most part wiped out and troubled assets were written down to current [...]

Weekend Reading

Quote of the Week: As commercials for Fram oil filters used to say, “You can pay me now or pay me later.” In our case today, “pay me later” is a perpetuation of weak banks, substandard growth, persistent unemployment and stymied productivity. Better to do takeunders of banks now than to hire an undertaker for [...]

Hussman: Bubble, Crash, Bubble, Crash, Bubble…

Hussman’s weekly market comment is a must read. He does not mince words in arguing that QE is utterly misguided and Bernanke’s leadership at the Fed has bordered on criminal. Excerpts below (emphasis mine) but please read the entire comment. Given that interest rates are already quite depressed, Bernanke seems to be grasping at straws [...]