Speculation: Bernanke’s days are numbered
In this fun thread, on July 4, 2007, I wrote about one of Bernanke’s speeches:
This latest wind bag empty rant of his is almost laughable
The Financial Accelerator and the Credit Channel
June 15, 2007
He speaks of his model results as if they represent reality without question. It is notable that he only references papers that support his arguments without a nod to the opposing viewpoint. The more I read this guy’s stuff, the more upsetting it gets. I may have only been thinking about credit markets for the past two years, but I’ve been a researcher for a lot longer than that and I’ve developed a nose for BS and Bernanke’s articles reek of it.
Then, in response to doctorwes’ comment, I said (emphasis added in bold):
For example, he suggests that if many homeowners have little equity in their homes, and there is a decline in home prices, there might be a more negative impact on the economy than people would otherwise expect.
More than who expected? Sounds like a lame excuse to me. The proponents of the BIS view certainly saw it coming and several NBER papers are there (including Scwartz’) to prove it, which he conveniently chose to disregard. Sorry, you can’t take one side of a debate and when it turns out you’re wrong, claim to be ignorant of the other side.
In addition to my apocalyptic predictions, I also predict that Bernanke will be removed from his post in the not-so-distant future (say post Nov ’08 ).
We’ll see if he lasts until after the elections. I doubt it.