SocraticGadfly: Bernanke’s “cure” worse than the disease?

January 21, 2008

Bernanke’s “cure” worse than the disease?

Fortune suggest the Fed chief’s aggressive rate-cutting in the face of what could be a fairly mild recession could backfire. They compare his actions to Fed chiefs Burns and Miller in the mid-70s, warning we may face a real recession, or similar problems, and need a new Paul Volcker, down the road.

That is a legitimate worry, in my book, especially if Bernanke does not prod Congress/Bush to address some structural issues, through regulation or whatever is needed.

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