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in his Friday New York Times titled Bernanke, Blower of Bubbles?

You should read it.  

There is one paragraph that caught my eye, which I will quote without the hyperlink:  

For whatever reason, many people in the financial industry have developed a deep hatred for Ben Bernanke, the Fed chairman, and everything he does; they want his easy-money policies ended, and they also want to see those policies fail in some spectacular fashion. As it turns out, however, dislike for bearded Princeton professors is not a good basis for investment strategy.
I LOVE it:  dislike for bearded Princeton professors is not a good basis for investment strategy

Now, go read that column!  And pass it on!

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Comment Preferences

  •  Tip Jar (30+ / 0-)

    "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

    by teacherken on Thu May 09, 2013 at 08:36:09 PM PDT

  •  I hope I see some evidence someone has read this (9+ / 0-)

    a comment or a tip is sufficient

    "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

    by teacherken on Thu May 09, 2013 at 08:47:19 PM PDT

  •  You have a typo in your headline. / (1+ / 0-)
    Recommended by:

    There is no existence without doubt.

    by Mark Lippman on Thu May 09, 2013 at 08:54:33 PM PDT

  •  "Listen, strange women lyin' in ponds, (6+ / 0-)

    distributin' swords is no basis for a system of government. Supreme executive power derives from a mandate from the masses, not from some farcical aquatic ceremony."

    ~ Dennis, a Constitutional Peasant

    Everybody got to elevate from the norm....

    by Icicle68 on Thu May 09, 2013 at 09:02:34 PM PDT

  •  This year is the centennial anniversary of the Fed (5+ / 0-)

    It was created by the Federal Reserve Act at the height of the Progressive Era.  Today it seems to be uniformly despised by people across the political spectrum.  There is an inverse relationship between hatred of the Fed and actual knowledge of what it is and what it does.  There's no shortage of rumors and myths about the Fed and some are as old as the Fed itself.  

    There is no existence without doubt.

    by Mark Lippman on Thu May 09, 2013 at 09:59:00 PM PDT

  •  There are two other related posts (6+ / 0-)

    in his blog Conscience of a Liberal:

    I Am Become Ben, Destroyer of Worlds

    Joe Wiesenthal reports on Bernanke rage among hedge funders, and sure enough, here’s Paul Singer declaring not just that he dislikes Bernanke’s policies but that BB is destroying the very fabric of society.

    More on the Roots of Bernanke Hatred

    Matthew O’Brien follows up on the hedge-fund-guys-who-hate Bernanke question, and points out that hedge funds have actually done quite badly for a decade, and especially since the crisis began. He also suggests that what the hedgies really hate isn’t Bernanke so much as the IS-LM framework he (and I) basically work in, and hate it all the more because it has worked so well.
    •  Was ist ISLM Sie fragen? (3+ / 0-)
      Recommended by:
      Youffraita, Creosote, Eric Nelson

      Herr Professor explains it here:


      A number of readers, both at this blog and other places, have been asking for an explanation of what IS-LM is all about. Fair enough – this blogosphere conversation has been an exchange among insiders, and probably a bit baffling to normal human beings (which is why I have been labeling my posts “wonkish”).

      [Update: IS-LM stands for investment-savings, liquidity-money -- which will make a lot of sense if you keep reading]

      So, the first thing you need to know is that there are multiple correct ways of explaining IS-LM. That’s because it’s a model of several interacting markets, and you can enter from multiple directions, any one of which is a valid starting point.

      •  I liked this: (7+ / 0-)
        Most spectacularly, IS-LM turns out to be very useful for thinking about extreme conditions like the present, in which private demand has fallen so far that the economy remains depressed even at a zero interest rate.


        That’s why in early 2009, when the WSJ, the Austrians, and the other usual suspects were screaming about soaring rates and runaway inflation, those who understood IS-LM were predicting that interest rates would stay low and that even a tripling of the monetary base would not be inflationary. Events since then have, as I see it, been a huge vindication for the IS-LM types – despite some headline inflation driven by commodity prices – and a huge failure for the soaring-rates-and-inflation crowd.

        I especially like it b/c Prof. Krugman has been saying all along that we weren't going to get hyperinflation...even as the Chicago School of Economics bloviated that we were.

        No: what Krugman correctly predicted was that we were in danger of a deflationary that the GOP seems to determined to bring on, if only to discredit Obama.


        Irony takes a worse beating from Republicans than Wile E. Coyote does from Acme. --Tara the Antisocial Social Worker

        by Youffraita on Thu May 09, 2013 at 11:53:56 PM PDT

        [ Parent ]

        •  The Fed is concerned (5+ / 0-)

          that inflation is too low because, as Krugman pointed out, it makes it harder to pay down debt:

          Why is low inflation a problem? One answer is that it discourages borrowing and spending and encourages sitting on cash. Since our biggest economic problem is an overall lack of demand, falling inflation makes that problem worse.

          Low inflation also makes it harder to pay down debt, worsening the private-sector debt troubles that are a main reason overall demand is too low.

          So why is inflation falling? The answer is the economy’s persistent weakness, which keeps workers from bargaining for higher wages and forces many businesses to cut prices. And if you think about it for a minute, you realize that this is a vicious circle, in which a weak economy leads to too-low inflation, which perpetuates the economy’s weakness.

          And this brings us to a broader point: the utter folly of not acting to boost the economy, now.

          •  Low inflation (5+ / 0-)

            brings with it (in these circumstances) the risk of a deflationary spiral.

            And may I say that NOBODY (except the One Percent) want to see that.

            But we are already seeing it in action in Europe.

            Those nations tied to the Euro are stuck.

            The U.S. is NOT.

   long as we can keep the GOP from forcing us into one.

            They really are Evil, those ReThuglicans.

            Irony takes a worse beating from Republicans than Wile E. Coyote does from Acme. --Tara the Antisocial Social Worker

            by Youffraita on Fri May 10, 2013 at 01:32:05 AM PDT

            [ Parent ]

  •  The question is whether or how long it will take (1+ / 0-)
    Recommended by:
    Eric Nelson

    for the realization to sink in that money is worthless. The Fed has been hinting that the Treasury should charge individuals and other nations who return dollars to it for safe-keeping, instead of issuing dividend-earning bonds.

    The U.S. Treasury is the issuer of dollars. Why does it pay a premium to retrieve dollars that aren't being used in exchange and trade? Why does the Treasury reward hoarding? The answer, one suspects, is merely "tradition."
    It all sessm to have started with the Dutch, who somehow managed to accumulate all the gold Spain and Portugal stole from the Americas in their vaults and then, instead of minting and issuing it as coins, the Dutch bankers issued certificates of deposit (certified IOUs) to pass from hand to hand and collected a premium for the service of financing, for example, the Industrial Revolution in Great Britain.

    Having the currency come back has, apparently, always been a problem. The British colonies objected to the stamp tax, on imports and exports, I guess.
    When the Confederate states separated, the first thing they did was issue their own currency -- not an entirely unique event because, at that time, states retained the ability to issue their own currencies. But the end of the Civil War was accompanied by the collapse of the Confederate dollars and ever since all of our states have been dependent on Washington for currency. And Congress has obscured its manipulation of the currency by privatizing the distribution through the Federal Reserve Banks.

    More recently, the countries of western Europe have voluntarily subordinated themselves to the issuer of a common currency, which has, as banksters are wont to do, restricted the availability in order to make it appear to be worth more, as usually happens with material commodities. But, both the euro and the dollar aren't material. They're figments of the imagination that get incorporated in tangible form -- sort of like the hosts and wine incorporating the body and blood of Christ. Except that electronic currency removes the last rationale for considering currency to be naturally scarce. It costs .08 cents to produce and distribute a dollar bill. It costs the same .08 to produce a hundred dollar bill. It costs nothing measurable for the Treasury to issue an electronic dollar to the Federal Reserve.

    We organize governments to deliver services and prevent abuse.

    by hannah on Fri May 10, 2013 at 04:37:16 AM PDT

    •  I come across people now and then who talk about (2+ / 0-)
      Recommended by:
      gramofsam1, virginislandsguy

      the worthlessness of our money.  I volunteer to take it off their hands if it's a burden having useless junk like that around.  Since they say it has no value I can't think of a reason why they'd miss having it.  I like to recycle and there could be some uses for worthless paper money.  I don't know why but, so far, no one seems to appreciate my generous offer.

      There is no existence without doubt.

      by Mark Lippman on Fri May 10, 2013 at 07:06:25 AM PDT

      [ Parent ]

  •  I love alliteration! (1+ / 0-)
    Recommended by:
    Deep Texan

    Babbling Barons of Bubblism! Sounds like a powerpoint presentation to me! Or another editorial!

    I try to read Krugman whenever I can.


    Character is what you are in the dark. Emilio Lizardo in Buckaroo Bonzai

    by Temmoku on Fri May 10, 2013 at 06:12:06 AM PDT

  •  not much of an argument about ''stock bubble'' (0+ / 0-)
    Major stock indexes are now higher than they were at the end of the 1990s, which can sound ominous. It sounds a lot less ominous, however, when you learn that corporate profits — which are, after all, what stocks are shares in — are more than two-and-a-half times higher than they were when the 1990s bubble burst.
    So the stock market is at all time high for who?

    ''A conservative is a man with two perfectly good legs who, however, has never learned to walk forward.'' FDR

    by lostinamerica on Fri May 10, 2013 at 07:43:11 AM PDT

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