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.”
Dead on. Despite what Obama and McCain would have you believe, the fundamentals of the economy are strong. Hell, we haven’t yet seen official numbers that confirm we’re even in a recession. It’s all about public confidence; in CEOs, the companies they lead and the markets in general. We’re in a bad place, no doubt, but today’s testimony gave me a little hope at a time we need it most.
Read about his comments at online.wsj.com.