Bernanke nailed it. Not something you hear in many circles at the moment. Lord knows I’ve had my problems with the man. But in today’s hearings on Capital Hill, the always … well, something, I’m not really sure what to call Chuck Schumer, asked the Fed chairman a good question.
Why $700 billion in bailout funds, as opposed to $150 billion to begin with and then drip the rest as needed, the Senator asked.
“Senator, you asked me my opinion as an economist,” Bernanke replied. “Unfortunately, this is a matter for psychology.”