Bernake

[spiritquest]

He's quoted in a Washington Post article as saying "If we did not place some limits on the downside risks to individuals affected by economic change, the public at large might become less willing to accept the dynamism that is so essential to economic progress

Comments

[darkeyedscorp]

Interpretting Federal Reserve Chief comments is always such good sport... I think someone behind the scenes crafts these messages to be purposely vague and nondescript so it appears he's saying something without really saying anything... Interpretation becomes a psychological game: If you are bearish, you interpret the comments as bearish; if you are bullish, you interpret them as bullish.

Personally, I don't know what limits to downside risks he's talking about. Banks would not be able to foreclose on loans; there would be limits to what credit cards can charge for interest; bankruptcy laws would not have been rewritten recently; there wouldn't be limits to unemployment compensation; and there wouldn't be homeless people on the street -- if there were limits to downside risks as he states.