In his speech today at the London School of Economics (the Stamp Lecture), Ben Bernanke gave a lengthy exegesis of his view of the recent economic problems.
Mish and Keven Depew at Minyanville.com both have well-written posts today, but neither links directly to the text, and I would like to add a big-picture comment to go along with my earlier post today, Bernanke Hearts Stimulus.
Please read the text carefully and completely. This man believes in what he's doing. And what he's doing is profoundly wrong and dangerous, not because he is evil, but because the system he is propping up is built on increasingly complex constructs of borrowing and lending. (It's like the concentric circles and other orbits of the spheres that led to acceptance of Galileo's idea that it was just simpler to assume that the Earth rotated around the Sun than the other way round.) In Dr. Bernanke's lengthy talk, I saw NO comment on equity. It's all about lending/credit to him. That's just not a - dare I say it- credible position anymore.
In equity, veritas.
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