What else could Bernanke have done?
So why wasn't a decision made then to change course?QE1 at the time was defensible... but as we progressed, very quickly we began to see it was not working
When should the Fed have stopped?That's a very good question and why I felt compelled to write this apology to America...
This was a program that was devised to help mortgage lending in America... mortgage lending decreased in that time...
Instead what we saw was massive Wall Street earnings
The Fed should have stopped after QE1 - when it was clear it wasn't working - instead it has bought $2.5 trillion more bonds and put itself in a position where the exit is very uncertain...
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Ultimately the tools [the Fed] has at its disposal don't work, and what it has done instead is enable a "crisis-driven" political system
Must-watch follow-up to his Op-Ed...
(Click link below to read more)
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