James Pethokoukis

Politics and policy from inside Washington

Bernanke: I saved the economy. Give me another term

Jul 21, 2009 22:23 UTC

This from Mike Feroli of JPMorgan (bold is mine):

Beyond the issues surrounding the economy and exit strategies, another aspect of the testimony that was of interest was the political angle. Bernanke made his strongest case to date that Fed actions have helped prevent what could otherwise have been an economic catastrophe. His very first sentence of the testimony read “Aggressive policy actions taken around the world last fall may well have averted the collpase of the global financial system.” After listing the notable imporvements in credit markets, he goes on to say “Many of the improvements in financial conditions can be traced, in part, to policy actions taken by the Federal Reserve to encourage the flow of credit.” These statements should be seen in the context of the whithering criticism of the Fed’s conduct of policy, some of that criticism coming from within Congress.

Me: Interestingly, the betting markets dropped the chances of Bernanke’s reappointment to 67 percent, down 3 points.

COMMENT

this persons you all call bernanke and geither paulson they are all people that cause all this mess that where all in and the funny part about all this is that the people that are over this deceitful humans just turn there heads away like nothing happen and how can bernanke tell us about employment when all he is a privatily own banker,you all got to be joking,is this real,this is one big nightmare,will this ever end.

Posted by james | Report as abusive

Bernanke warns Congress

Jul 21, 2009 17:58 UTC

IHS Global on Bernanke’s talk-talk:

Bernanke wanted to send the message that Congress needs to prepare its own “exit strategy” from unsustainable budget deficits. His formal remarks made no mention of a possible second stimulus package (under questioning he said that the idea was “premature”), and he said that policymakers should begin planning “now” to restore fiscal balance. He didn’t offer prescriptions on what to do (whether to raise taxes or cut spending), but said that postponing choices would only make them more difficult. He said that agreement on a sustainable fiscal path could lower long-term interest rates and boost confidence – the implication being that lack of agreement would do the opposite.

COMMENT

HOW can bernanke warn anybody,When he cause all this mess,PEOPLE DON,T know that congress NEVER voted to have this so call name federal reserve,these bankers took this on them self when congress went on HOLIDAY break with no approvel from congress which they think they can make there own laws,AND DID YOU ALL KNOW THAT THESE PEOPLE ARE HOLDING AMERICANS GOLD FROM FORT KNOX AND THEY PRINT OUR MONEY WITH OUR PAPPER AND THEN THIS PEOPLE CHARGE US INTEREST ON OUR OWN MONEY,PLEASE WAKE UP AMERICANS,GET RID OF THESE DECEITFUL PEOPLE.

Posted by james | Report as abusive

What healthcare reform might actually look like …

Jul 21, 2009 12:39 UTC

One Capitol Hill watcher sends me this on what a Democratic fallback position on healthcare might look like:

I think that a “compromise” plan looks something like an individual insurance mandate and some further coverage mandates/restrictions (like not allowing denial of coverage based on pre-existing conditions).  If they didn’t want to “fall quite that far back,” so to speak, they could couple such a plan with substantial subsidies for people up to 400-500% of the federal poverty level.  This would mean no “public option,” but it would still represent something the Democrats could call health care reform.

That kind of a plan would probably have some legs, assuming the cost/pay-fors weren’t an enormous problem.  … Many Republicans seem to have already conceded that an individual insurance mandate is acceptable, so I think that’s the route Democrats could use to get closer to their preferred destination.

COMMENT

I really can not understand what is the matter with he fed. they seem to think that by keeping the interest rates low that they are helping people . This ladies and gentleman is the WORST thing that can be done for the building trades and large buys.

who in this country have the most disposal income? I hope you got i right and that is seniors. and what do they spend ?? NOT their capital!!! They spend and give away there interest. so with this in mind WHO is benefiting from low interest?? The people that put us in this situation.
Please do not make us a Third Class Country . We now because of past policies now a Second Class Country.
Please do what is right for the country not Goldman Sachs

Posted by Dan Behan | Report as abusive
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