Geez... right after I post that lengthy call for Bernanke to be reconfirmed...

[Kurt_and_Hunter]

(I still think he's better than any likely replacement, given the political climate and administration inclinations, but this is a sucky thing for him to have said. Of course, Bernanke's big crime here is that he is not contradicting the administration that just reappointed him, but it still sucks. The administration is not exactly screaming for more deficit spending. Sigh.)

Paul Krugman
December 4, 2009, 3:56 pm

Bernanke does a bad, bad thing

I cut Ben Bernanke a lot of slack. But this was really bad:

Federal Reserve Chairman Ben Bernanke on Thursday threw cold water on efforts to push a major new fiscal stimulus package.

At his confirmation hearing for a second term as chairman, Bernanke emphasized that the government has spent less than half of the money in the $787-billion package passed earlier this year and that analysts are still determining its impact.

“Only about 30 percent of the funds have been disbursed,” Bernanke said. “It’s a little bit early to make a strong judgment, a little bit early to decide whether or not to do additional fiscal actions.”

The stimulus has already had its maximum impact on growth — and there’s no sign that private final spending is ready to pick up the slack. Here’s Goldman Sachs on what’s likely to happen to the forces now driving recovery, such as it is:



...Bear in mind also that fiscal policy is slow to get underway. Waiting to be absolutely, totally sure that we really need more strikes me as deeply irresponsible.


http://krugman.blogs.nytimes.com/2009/12/04/bernanke-does-a-bad-bad-thing/

[gateley]

1. Then I must retract my complimentary response to your obviously idiotic post.

:7 :hi:

[snagglepuss]

4. LOLOL. Very sporting. You made my day. nt

[Arctic Dave]

2. Just because the water is lapping at your ankles doesn't mean the ship is sinking.

[Cassandra]

5. It could just be trickle-down...

economics. ;-)

[geckosfeet]

3. If they are going to spend it, they should spend it on main street.