Bernanke Signals Intent to Further Spur Economy (Sewell Chan, New York Times, Friday, October 15, 2010)

Let me make sense for you of the psychology behind the article by making a contrast between Bernanke (B), the present Fed Chair and Greenspan (G), the previous one. G created the economic mess by letting smart bankers create sub-prime mortgage securities, package them, sell them to smart Americans who sold them to  stupid Chinese, each group making a marginal profit in the process at the expense of tax payers. The house of cards collapsed when millions of cheap folks defaulted on expensive house payments. G left the mess he created to live the rest of his life-giving speeches as a genius celebrity. Comes in Bernanke, the present Fed Chief, and makes vague speeches in an article, like his predecessor, not to inform but to confuse so consumers will not have a clear understanding of policy and be pacified – to buy time because the recovery will take longer than the public has patience for. Like his predecessor, he is vague taking about executing “unconventional policies,” actually meaning “Assets purchasing mortgage related securities,” meaning the Fed’s buying subprime mortgages to help banks recover!” or handle the “Contraction in the economy,” meaning, “not hiring employees or starting businesses because of fear of failure in an irresponsible bailout environment.”  You see, speaking in vague terms is a government policy, the less you understand the less you can protest with your vote in November! Then he says, “The Fed is prepared to manage the risk,” Sounds good but too obvious, meaning, “handing the fallout from G having unregulated economy to B overpopulation it by purchasing  ill products or companies instead of letting them go. You see, again, G was deregulating and B is re-regulating. This is the “stuff” of life in every group of any kind in this chaotic world!

In the final analysis, what I want you to get about the groups that you belong to, is that the Feds, like any other group, including yours, is already lined up as liberals versus conservatives, which has more to do with their personality than economics, or Leftist versus rightist, or democrats versus republicans, which clarify the last paragraph in the article about taking action. The democrats want to act now on the economy and “spend” your money to “save” the economy (B already does that) while the republicans on the Fed committee want to act later only if unemployment gets worse, the “wait and see” attitude. Who is right? Neither, neither, neither, the right action is in-between, the mid-course, let Fanny May and Freddy Mac  go, support others, but that is not a possible option in a society that wants to be “perfect” like ours! Bail out most companies, even those that can’t manage (democrats), Sell cars to all Americans (both), even those who prefer to take the bus, have “a chicken in ever pot,” even for vegetarians, or, own your own home at any price (bankers), all Americans should own a home (culture), even those who had always rented before. That’s what started it all, a dummy culture that tries to make everyone the same as everyone one else!


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