Friday, December 4, 2009

Bunning on Bernanke

although Fed chairman Bernanke's confirmation seems to be a given if one believes the vote counters, the hearings are giving the senators a chance to open up on him with both barrels; the rant by Jim Bunning of Kentucky has been posted on several blogs, with commentary, but ill just post the opening paragraphs from his website, and you can go there to read the rest:

Four years ago when you came before the Senate for confirmation to be Chairman of the Federal Reserve, I was the only Senator to vote against you. In fact, I was the only Senator to even raise serious concerns about you. I opposed you because I knew you would continue the legacy of Alan Greenspan, and I was right. But I did not know how right I would be and could not begin to imagine how wrong you would be in the following four years.

The Greenspan legacy on monetary policy was breaking from the Taylor Rule to provide easy money, and thus inflate bubbles. Not only did you continue that policy when you took control of the Fed, but you supported every Greenspan rate decision when you were on the Fed earlier this decade. Sometimes you even wanted to go further and provide even more easy money than Chairman Greenspan. As recently as a letter you sent me two weeks ago, you still refuse to admit Fed actions played any role in inflating the housing bubble despite overwhelming evidence and the consensus of economists to the contrary. And in your efforts to keep filling the punch bowl, you cranked up the printing press to buy mortgage securities, Treasury securities, commercial paper, and other assets from Wall Street. Those purchases, by the way, led to some nice profits for the Wall Street banks and dealers who sold them to you, and the G.S.E. purchases seem to be illegal since the Federal Reserve Act only allows the purchase of securities backed by the government.

for the rest, go to the Bunning Statement On The Re-Nomination Of Ben Bernanke To Be Chairman Of The Federal Reserve...

2 comments:

  1. bunning had prepared a series of questions for bernanke that can be found in this 33 page pdf; or you can get selected exerpts from this post at calculated risk

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  2. the above has bernankes answers as well...

    ReplyDelete