Thursday, December 3, 2009

Senator Bunning to Bernanke: You Are A Moral Hazard


Jim Bunning, Republican Senator from Kentucky and the only one who voted no on the 1st confirmation 4 years ago, had some harsh words to Ben Bernanke in today's confirmation hearing.

Mish Shedlock has a partial transcript on his blogsite. Among other things, Senator Bunning said to the Fed chairman:

"Chairman Greenspan sold the Fed's independence to Wall Street on the so called "Greenspan PUT". Whenever Wall Street needed a boost, Alan was there. But you went even farther than that when you bowed to the political pressure of the Bush and Obama Administrations, and turned the Fed into an arm of the Treasury.

"Under your watch the "Bernanke PUT" became a bailout for all large financial institutions, including many foreign banks.

"And you put the printing presses into overdrive to fund the government's spending and hand out cheap money to your masters on Wall Street.

"In short, you are the definition of a moral hazard.

"You are repeating the same mistakes as Japan in the 1990's on a much larger scale while sowing the seeds for the next bubble.The AIG bailout alone is reason enough to send you back to Princeton.

"I will do everything I can to stop your nomination and drag out this process as long as I can. We must put an end to your and the Fed's failure and there is no better time than now.

"Your Fed has become the creature from Jekyll Island."



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