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2 comments:
Pretty much nailed it.
Let's see, how many obvious mistakes can I spot?
- Deflation does not mean people can buy more stuff, because deflation also means reduced wages, not just reduced prices. Similarly, inflation means increased wages, so it's not like higher prices really hurt.
- Greenspan spent a lot of time in the late 90s trying to tell people that the markets were going crazy, in large part due to the Internet stock bubble, and people didn't listen to him. He's not blameless, but he's not as bad as this makes him out to be.
- Bernanke has "no policy experience", except for being on the Fed Board of Governors and Bush's Council of Economic Advisers.
- Obama bringing the change...well, I won't even touch that.
- Most economists(sadly) seem to think that expansionist monetary policy is generally good.
I don't agree with Bernanke on this, but this is too loose with facts to be much of an effective counter.
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