Saturday, June 11, 2011

I Don't Believe Ben Bernanke

In 2007,  Fed Chairman Ben Bernanke predicted that the housing bubble and sub prime crisis would not cause a recession. We know now how very wrong he was.   My mistake was not to act on my belief that the issues were significant.

Now, Mr. Bernanke wants me to believe that the anemic economic growth merely a bump versus a systemic failure of economic policy.  In his mind, the bad economy is to be blamed on other uncontrollable factors, e.g. the Japan Tsunami or Europe, instead of on the policies of  Federal Reserve and the Obama administration.  His only course of action is to wait and hope for things to get better.

While Mr. Bernanke hasn't learned from his mistake of 2007, I've definitely learned from my mistake.  This time, I'm assuming Ben Bernanke is likely wrong.   So, I am preparing myself for another significant economic decline, despite Mr. Benanke telling me the economy is still fine.

For more on  Reflections and Musings, check back every Saturday for a new segment.
This is not financial or policy advice. Please consult a professional advisor.

Copyright © 2011 Achievement Catalyst, LLC

No comments: