Praising Bernanke????

[fccool]

http://economix.blogs.nytimes.com/2008/10/08/in-praise-of-bernanke/

I'd have to say that both the Government and the Fed right now are in a hot seat. They have 2 choices

1) Let the markets snowball into severe depression

2) Cut the rates and print more money let the bubble stretch even more so before.

I guess I am one of the few, but please somebody explain to me how you can solve the problem of debt by borrowing more money (aka... debt surfing)???? Sure it will cover up the problem a bit longer, but for how long? Do you really expect no effect on Global economy with all of the money being pumped into the system????

Now it is very clear why Fed stopped publishing M3, because the M3 chart would look insane right now. There's more new money being pumped into the system (in form of loans) right now, than at any point in history!!!

In fact, the last resort of any government is to do exactly that, to try bail out the economy by pumping liquidity... until people begin to drown in that liquidity.

What happens when the crisis reaches the next stage, because people don't have anymore money to spend and will not borrow to do so? The crisis will hit businesses.

Sure, Bernanke is bold, but far from heroic! The ONLY thing he can do at this point is to cut rates and print more money to buy up the debt at expense of inflation.... hyperinflation that is.

Neither McCain nor Obama were honest yesterday. Each one said that they have confidence that things will be fine and we'll avoid the crises. They exchanged some of their campaign slogans. Avoided the causes, and McCain resorted to personal attacks rather talking about solutions.

All I can say is that the era of easy 250k loans is over.