NOW he tells us? Bernanke admits regulation shortfall

The NYT has a story about this today — first day back to business-as-usual after the holidays. Evidently, in a speech yesterday, Fed chair Ben Bernanke suggested the housing bubble and the attendant economic bust that followed the bubble’s popping resulted from (now, this is the sort of irony that makes for guffaws in movie houses) INSUFFICIENT OVERSIGHT.

“Stronger regulation and supervision aimed at problems with underwriting practices and lenders’ risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates,” Mr. Bernanke said in remarks to the American Economic Association.

Gotta be the biggest CYA moment since Sunday’s A-J carried (touted on the front page in 60-point bold, no less) statements from the TTU trainer and team doctor contradicting Mike Leach’s treatment of Adam James (son of ESPN commentator and Pony Express culprit Craig James). OF COURSE the doc and the trainer came down on the side of the admin: the admin had all week to reinforce the point that you cross Gerald Myers and your job and paycheck are history….

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One response to “NOW he tells us? Bernanke admits regulation shortfall

  1. grahamfirchlis

    CYA or not, the re-establishment of Keynsian policies and repudiation of the Chicago School is welcome news. Bernanke is a tool, IMHO, but he appears to not be a rigidly ideological tool. Compared to Greenspan, this is what we optimistic types call an improvement.

    Paul Krugman thinks Bernanke is an OK guy who got caught up in the same Consensus Wisdom that engulfed nearly everyone in a whole generation of economists and dictated advancement opportunities within the Fed system. Christine Rohmer also speaks well of him, and she’s a very smart person. Maybe he is OK, or as close to OK as we are likely to get. Or maybe even Krugman and Rohmer are bought and paid for and we are all truly screwed.

    Going to have to put up with him regardless, so I’m willing based on the Krugman/Rohmer endorsements to suspend judgment for a while and see what he does. I’m up to my eyeballs in demons anyway; one more or less right now doesn’t matter.

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