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With New Bernanke Term Obama Can No Longer Blame Bush

Ben Bernanke served as Federal Reserve Governor and Chairman of President George W. Bush’s Council of Economic Advisers. Appointed to a 4 year term on February 1, 2006, Bernanke presided over the financial meltdown as one of Bush’s chief economic advisers.

In a speech on May 17, 2007, Bernanke concluded:

Credit market innovations have expanded opportunities for many households. Markets can overshoot, but, ultimately, market forces also work to rein in excesses. For some, the self-correcting pullback may seem too late and too severe. But I believe that, in the long run, markets are better than regulators at allocating credit.

We at the Federal Reserve will do all that we can to prevent fraud and abusive lending and to ensure that lenders employ sound underwriting practices and make effective disclosures to consumers. At the same time, we must be careful not to inadvertently suppress responsible lending or eliminate refinancing opportunities for subprime borrowers. Together with other regulators and the Congress, our success in balancing these objectives will have significant implications for the financial well-being, access to credit, and opportunities for homeownership of many of our fellow citizens.

So, Bush’s economic adviser believed that the market should regulate itself. Not the government.

A few days later on May 28, 2007, Bernanke told a joint economic congressional committee:

Overall, the economy appears likely to continue to expand at a moderate pace over coming quarters. As the inventory of unsold new homes is worked off, the drag from residential investment should wane. Consumer spending appears solid, and business investment seems likely to post moderate gains.

We all know what happened. The next few quarters did not expand. Bernenke hedged his bet in this speech to be sure, but he believed the economy was doing just fine.

So, with Bernanke’s myopic vision as to the state of the economy, Bush made decisions based on this advice.

Given the economic events that occurred next, any other President would have not only refused to reappoint Bernanke, but would have – should have – demanded his resignation upon taking office.

So sorry, Mr. Obama. Your support and reappointment of Ben Bernanke no longer gives you the right to blame Bush. You are seeking advice and actions from the same source you hold responsible for the meltdown in the first place.

Really odd!

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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