william the wie
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- Nov 18, 2009
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Bernancke oversaw the meltdown with his sidekick Geithner carrying water at the New York Fed presidency. The key error, which was pointed out at the time, was the bailout of Bear Stearns followed roughly six months later by letting Lehman Brothers be forced into bankruptcy. Nine months before the bailout the collapse of Bear Sterns, two hedge funds owned by BS were pushed into bankruptcy presumably to clear the decks for Bear Sterns proper to be pushed into bankruptcy by hedge fund investor lawsuits. Whether the original call on the hedge funds was the right path or not the reversal of policy in bailing out Bear Sterns and then letting Lehman Brothers go bankrupt was two 180s on basic policy in 15 months. Those policy 180s were definitely incompetence in action.
So Obama is elected and he reappoints Bernancke while promoting Geithner from president of the New York Fed president to secretary of the Treasury. Now people from both sides of the aisle are talking about the differences in their champions. If there is any difference between Bush and Obama on economic policy what is it?
So Obama is elected and he reappoints Bernancke while promoting Geithner from president of the New York Fed president to secretary of the Treasury. Now people from both sides of the aisle are talking about the differences in their champions. If there is any difference between Bush and Obama on economic policy what is it?
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