“If I were Bernanke for sure I would resign after having messed up the US and as badly as Mr Bernanke and Mr Greenspan have done over the last fifteen years,” says Marc Faber, managing director and editor of The Gloom Boom and Doom report. Here is a direct link.
Follow
____________________________
;
1. The FED is NOT responsible for credit expansion.
2. But the FED certainly could have done something: raise reserve requirements. That should have been done in the second half of the 1990s. That would have curbed excessive lending.
3. Sending everyone a check of say USD/CAD/EUR 5.000 or 5.000.000 does NOT help because – in the current situation !!!! – it is actually EXTREMELY Deflationary. Because everyone would use the money to pay down their debts, instead of going out and leverage up again. When one would send the money to Wall Street then they would use the money to speculate in one or the other asset class, causing another wave of (price) inflation.
The FED is NOT driving the economy. The rest of the consumres/speculators are.