Bernanke’s Fairy Tale Recession Story for Kids

"In the nearly 100 years since the Fed’s creation, the deeper the economic downturn, the greater the number of policy missteps by the Federal Reserve and its cohorts in Washington. This was the case in the Great Depression, which was a downturn rife with Fed policy mistakes. Similarly, the most recent downturn, although not as bad as the Great Depression, was quite deep and also involved numerous policy errors by the Fed. Unfortunately, that’s not one of the obvious lessons of financial crises that professor Bernanke shared with the GWU students.

Rather than admitting to the arbitrary and capricious nature of the bailouts, Mr. Bernanke would have us believe that he and his band of bureaucrats executed a cogent strategy to pull from the brink of disaster companies—and, indeed, a nation—that were too big to fail. The fact is that they guessed their way through the bailouts and cannot point to any cogent analysis of the costs of “inaction.” "

Bernanke’s Fairy Tale Recession Story for Kids: Newsroom: The Independent Institute