Don’t Do It Ben! An Open Letter to Ben Bernake

Dear Ben,

So, you and your buddy Hank have thrown everything you have at this economic crisis of yours so far and nothing has worked.  Short term loans?  Nope.  $600 billion?  Nope.  The $750 billion bailout?  Probably not.  A rate cut?  Won’t work.  

First of all, you need to realize that this “crisis” is called a recession.  It was partially fueled by your great predacessor, Alan Greenspan, who lowered rates to 1%.  He created this monster by not letting a recession happen after the tech bubble burst and 9/11.  Have you not learned anything in all your years as a professor?  The longer we try to inflate our way out of a recession, the worse it’s going to get!  Read your economics books!

Now you think buying billions of dollars of short term commercial loans is the solution?  You want to lower the Fed Rate again?  Is that the solution?

NO!  There is no “solution” to the recession except to let it play out.  Sure, this sucks for everyone right now.  Well, everyone except the politically well connected and all the Wall Street fat cats you’re helping to bailout.  

All of this bad debt needs to be liquidated and unwound, not bought up for hundreds of billions of dollars.  You can’t keep pouring more grease on a grease fire.  That is exactly what you are doing now.

Also, you can stop warning us that we’re going to be in a recession too because we already are in one.  You probably don’t feel it like most normal Americans though, but you can trust me on this.

We can suffer a little bit more, probably as long as it will take for the recession to run it’s course.  Then when it’s over, we’ll come out of it a stronger nation, who will save and not spend ourselves into massive amounts of debt.

So please, stop trying to fix the problem.  You’re only making it worse.

Thanks.

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One Response to “Don’t Do It Ben! An Open Letter to Ben Bernake”

  1. morris Says:

    Maybe his insanity is intentional:

    http://morris108.wordpress.com/2008/10/07/a-double-double-whammy-weaken-russia-venezuela-iran-and-bolivia-by-lessening-their-oil-income-through-a-recession-in-the-west/

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