Revolting Bankers of Obama
Editor’s note: John Ransom remains, for the time being, on vacation. The below “Best of” article (so named for the sake of brevity) is included simply because of its prophetic nature. After all; we all stumble upon brilliance occasionally.
Our loveable Townhall Finance Editor will return with mildly intriguing articles as soon as his vacation comes to a close. In the meantime, check out our other top-notch contributors such as Daniel J Mitchell, Mike Shedlock, or – if you feel like punishing yourself – feel free to read my commentary. Thanks for reading!
- Michael Schaus, Associate Editor for Townhall Finance
On June 17, Barack Obama had one of his most awesome reality TV events of the year when he fired central bank chairman Ben Bernanke on PBS with liberal mope and host Charlie Rose moderating.
“He essentially fired Ben Bernanke on the spot and gave him a fairly tepid testimonial afterward,” said former Fed Governor Laurence Meyer, in an interview on CNBC the next day.
And the bankers have been in revolt ever since.
The government, meanwhile, has revised the economy’s performance downward. The newest do-over by government economists comes three months after they gave the economy one of the strongest readings since 2007.
“The economy grew at a 1.8% annual rate in the first quarter, the government reported Wednesday, well below previous estimates of 2.4% growth and missing forecasts,” reported USAToday.
Still, several voices that had been the strongest advocates for monetary stimulus have suddenly and inexplicably reversed course, saying that the limits of monetary policy to help the economy have been reached.
Left unsaid is that perhaps those limits were reached when Obama fired Bernanke.
For those keeping score at home, monetary policy is the policy that determines how much money is made available in an economy through both the money supply and the availability of credit. More money and lower interest rates, supposedly, equals more growth, so the theory goes.
This is different than fiscal policy, which has to do with how much the government taxes and spends on operations.