Bernanke: 'We have lost control'

[struggle4progress]

Economist recounts talk with Fed chairman
By Joshua Boak | Chicago Tribune reporter
September 17, 2008

NAPLES, Fla. — Several months ago, economist David Hale had a private meeting with Federal Reserve Chairman Ben Bernanke, who was trying to ward off a recession by lowering interest rates and increasing the money supply in the economy.

The problem with that approach is that the value of the dollar plunged against foreign currencies, causing crude oil prices to skyrocket because oil is pegged to the dollar. It affected food prices, gasoline and family budgets ...

Bernanke could hypothetically limit inflation in commodities by raising interest rates, a policy that would restrict the flow of money but potentially lead to an avalanche of bank failures. At a financial conference in Florida on Tuesday, Hale, a Chicago-based economist for investment managers, hedge funds and multinational companies, paraphrased the Fed chairman's response.

"We have lost control," said Hale, quoting Bernanke. "We cannot stabilize the dollar. We cannot control commodity prices." ...

http://www.chicagotribune.com/business/chi-wed_oilsep17,0,4833605.story

[dkf]

1. Stabilizing the dollar and controlling commodity prices aren't the problem now.

Instead the problem is containing the derivatives mess and the lack of transparency which is scaring suitors of distressed financials away.

[AndyTiedye]

2. Business Week Had It Nailed Some Time Ago

[curious one]

3. No kidding. What have you done to correct it?

[TomClash]

4. A dated analysis nt

[izzie]

5. And the GOP have been in control for years and I will bet you

that a good half of the voters will vote for them once more. I swear things have not got bad enough yet for people to wake up. I think it is time to clean every one out of Congress and the WH and courts and re-start with all new people and see what they can do. What we need is people who do not know how things work in DC.

[Enthusiast]

6. And the people will deserve the Republicans

when they get them. As they deserve them now for the way they repeatedly elected them. What a damn shame for my once great country. Well, the ultra wealthy got theirs. It's just like we knew it would be.

What characteristic most describes the Americans people? Come on, you can say it. IGNORANCE!

[izzie]

10. I do not know if it is ignorance but it is sure voters reading some-

thing in to what a Bush and McCain say that they want to believe. Wasn't their a book out once about the closed mind of the Am. pop. ? We do seem to re-vote into office the very people that keep putting us in the hot seat and I do not understand why. Heck even I started out from a GOP family and voted for Ike and once I started thinking I got out of the party. People who believe in a top down form of govt. just does not help the working people of this country. At the rate we are going we will be back to letting a royal family take over and hand out things like in old Europe. Just hard to believe that the very thing this country was trying to rid its self of has sort of taking over our govt. Rule by a few families, churches, and the very rich. Give me a brake.

[Uncle Joe]

7. This is a direct result of the Republican mentality that government

should be shrunken or weakened to the point of drowning it in a bath tub, inevitably the people drown with it.

This blind faith, buttered with ample lobbyist money, that mega-corporations or the market will simply police it self with no oversight. When conflict of interest or even the perception of such mean nothing anymore, the people's interest mean nothing.

No doubt, Grover Norquist must be ecstatic.

[katty]

8. ya think?!!

[Hestia]

9. Enough! Print this out and show it to your 'pug friends and point

how how Bush's top man lost control - that the 'pugs again (push Keating 5) over our finances. Hammer home the socialization of AIG and ask, how much is your health care? Do you even have health care?