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The FCIC backpedals on its prior refusal, and releases its 2009 interview with Ben Bernanke...

The FCIC backpedals on its prior refusal, and releases its 2009 interview with Ben Bernanke (transcript). Among the more choice bits: He'd defend his actions on Lehman Brothers "to my deathbed," and blames "poisonous" politics for TARP's failure to spark lending.
Comments (6)
  • Duude
    , contributor
    Comments (3376) | Send Message
     
    IMO, TARP's failure to spark initial lending back in 2009 was due to the combination of banks deeply in need to conserve cash at the time due to overleveraged assets on their books and the typical situation in any deep recession where businesses in dire need aren't worthy debtors in the midst of an unknown future economy and those not in dire need unwilling to borrow for expansion due to that same unknown future economy. It really had nothing to do with politics and everything to do with the unpredictable future economy in 2009.
    15 Feb 2011, 11:59 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    There have been countless articles declaring TARP a great success, so it's fascinating to see Bernanke say otherwise.

     

    The Keynesian Lament: "If it weren't for politics, goosing aggregate demand would be a cinch."
    15 Feb 2011, 12:03 PM Reply Like
  • wyostocks
    , contributor
    Comments (8056) | Send Message
     
    Ben the man is delusional.
    15 Feb 2011, 12:03 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    "It's all the other guy's fault, none of mine."
    15 Feb 2011, 12:04 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (543) | Send Message
     
    Bonus points for someone to search around and find the names of others who have defended actions "to their deathbed" (or at least until they fled their country to the south of France). My guess is it's not a pleasant list of leaders.
    15 Feb 2011, 12:23 PM Reply Like
  • rhgordon
    , contributor
    Comments (49) | Send Message
     
    sometimes i wonder whether Bernanke's reputation as being one of the great scholars of "The Great Depression" means that his economic understanding of events is unparalleled...or that he wants to take us back to one.
    15 Feb 2011, 12:38 PM Reply Like
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