More Evidence Of Bernanke's Role In Bubble

This shouldn't really be a surprise to anyone, but just released comments from fed meetings show the degree to which Ben Bernake recklessly cheer led for rate cuts which pumped up the housing bubble. Of course this earned him a promotion.

2003

"I would like to caution against the situation where we are continually waiting for uncertainty to be resolved before taking action," Bernanke said in a March meeting, just before the Iraq war started. "If the economy is still struggling and if there is no significant improvement or evidence of increasing strength by our next meeting, I hope we will at least consider the case for easing policy at that time."

Skipping ahead.

Part of the low-interest rate policy during that period included a statement from the Fed that it would leave rates low "for a considerable period." There was a spirited debate over whether to use that language in the August 2003 meeting, and Bernanke made a vigorous argument to do so.

Bernake was already mentioning the idea of a zero or sub zero fed funds rate which would make it profitable to make almost any bad investment. (and that's what happened)

His alleged calls for clarity and transparency now ring as hollow as Obama's