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Originally Posted by Iriemon  Bernanke seems more interested in getting the economy moving before the next election than curbing inflation. IMO it's a dangerous game to play with inflation as we witnessed in the 70s.
I don't have a problem with the Fed easing money policy in relation to the economy, but keeping inflation at bay has to be its first priority. |
I don't think it has anything to do with the election. I think he is doing the most he can with a very bad set of circumstances.
He would have raised the interest rate a long time ago if it were not for the fact banks and lending institutions were in deep with bunk mortgages that were carelessly invested in. Were the interest rate not lowered to where it is now, there would be a strong likelihood of tremendous economic turmoil as these institutions crashed without ability to borrow and rebuild at a low interest rate.
The real problem was the lack of supervision earlier by Greenspan, and the corrupt legislation passed by congress and the president which allowed this mess to occur.