Comments on: Fed’s data dump holds important lessons for Europe Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: ARJTurgot2 Tue, 07 Dec 2010 14:41:20 +0000 Ten years from now, serious financial historians are going to be saying that Ben Bernanke was the right guy, with the right background, making the right decisions, and prevented a complete meltdown. He may even yet prove to be the guy that fixes the China problem. Ten years from now we will also still have a central bank, it will still be independent, and gold will be in the $400 range. For all of that, Libertarians will still be claiming he is first cousin to the anti-Christ, and someone will be bullish on gold.

The next test of Bernanke’s ability is going to be pulling off the 3% inflation limit thing, especially on the price side. The unemployment rate is going to be very hard to pull down, and wage growth is going to seem mythical. Businesses are now being trained to just get by, somehow survive, and when they hire, it’s going to be limited to needed replacements. Hard in those circumstances to stick your head up and ask for a raise.

There is no lack of need, we could suck up everyone on UI right now and use them in overdue infrastructure work, but the political will or leadership isn’t there. Geithner is not going to be treated nearly so well by history. Clinton says that Obama has it all; the brains, the skills, the ability. We’re now going to see about that, but I’d still rather have our odds than Europe’s.