Ben Bernanke Reapointed

"However, I have to admit that even I was surprised by last Friday’s CBS Marketwatch headline: “We Saved the World From Disaster, Bernanke Says.”

Bernanke’s claim that the world’s central bankers rescued the global economy from collapse – even if true – fails to recognize the role they played in actually creating the disaster in the first place.

Excess money expansion throughout the world (a problem that dates all the way back to 1995 in the United States, although it really ramped up after the 2001 stock-market crash) – led to an asset bubble and a situation of over-leverage that left the global financial system in a highly vulnerable situation."

Martin Hutchinson, Money Morning, 26-Ago-2009