Remarks by Governor Ben S. Bernanke
Before the National Economists Club, Washington, D.C.
November 21, 2002
Deflation: Making Sure "It" Doesn't Happen Here
A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers.
It's hard to know what causes a cycle, even in retrospect. Interesting to speculate, though. Was the Federal Reserve successful in prolonging this boom? Perhaps we will never know for sure.
Market commentors noticed a pattern during Alan Greenspan's tenure as Fed chair from 1987 to 2006. The Fed, it appeared to some, had developed a policy of bailing out stock investors by injecting liquidity into the economy amid large stock market declines. This perceived tendency came to be called the "Greenspan put."
Bernanke said in the film that he would continue the policies of Greenspan and he did in a big way.
Market commentors noticed a pattern during Alan Greenspan's tenure as Fed chair from 1987 to 2006. The Fed, it appeared to some, had developed a policy of bailing out stock investors by injecting liquidity into the economy amid large stock market declines. This perceived tendency came to be called the "Greenspan put."
Bernanke said in the film that he would continue the policies of Greenspan and he did in a big way.
During the Greenspan era, it was thought by some that blowing a generational bubble was OK because it would give the new technologies time to be commercialized and there would be some long term benefit to getting the internet companies established, then popping the bubble to revert everything back to the mean while the strongest internet companies survived and the US took the lead. In the early 2000s that thinking seemed to change and the US lost its way is my version of what happened. But before I go any further I will try to dig up some evidence for the first sentence.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
During the Greenspan era, it was thought by some that blowing a generational bubble was OK because it would give the new technologies time to be commercialized and there would be some long term benefit to getting the internet companies established, then popping the bubble to revert everything back to the mean while the strongest internet companies survived and the US took the lead. In the early 2000s that thinking seemed to change and the US lost its way is my version of what happened. But before I go any further I will try to dig up some evidence for the first sentence.
The reality is that Greenspan really didn't know what he was doing.
He lost his way when he abandoned the gold standard.
She had to retire as the mental patients damned well have beat her more than once.
Her knee was blown out and was forced to retire damn near crippled.
These damned fools have no clue what is coming from these drug addled ssri animals growing like a petri dish of the demonic damned.
Ruled by fools ignored by useful idiots as the cheerful idiot taxpayers just end up homeless.
The effort underway for the remaining sane community is a respite area for Parents barely hanging on with issues we deal with
since these liberals would drown in as a rainstorm looking up.
Marxism the road to Hell.
Moleks you worship in the sprint to eternal separation from your Creator.
During the Greenspan era, it was thought by some that blowing a generational bubble was OK because it would give the new technologies time to be commercialized and there would be some long term benefit to getting the internet companies established, then popping the bubble to revert everything back to the mean while the strongest internet companies survived and the US took the lead. In the early 2000s that thinking seemed to change and the US lost its way is my version of what happened. But before I go any further I will try to dig up some evidence for the first sentence.
The reality is that Greenspan really didn't know what he was doing.
He lost his way when he abandoned the gold standard.
Roosevelt took the US off the gold standard in 1933.
