Bernanke Opposes Fed Loans for GM, Ford, Chrysler
Dec. 9th, Bloomberg
Bernanke: “In particular, it would raise the question as to whether the Federal Reserve should be involved in industrial policy, which has traditionally been outside the range of our responsibilities.”
He said "industrial policy"! You read it here first: I wrote about it weeks (months?) ago. At least when the Japanese practiced 'industrial policy' (which Clyde Preskowitz and many others in Washington wanted us to practice back in the 1980's) they backed the winners, not the losers.
Bernanke is also a little late in worrying about getting his virginity back: when it's gone, it's gone, and with it the Fed's independence (he doesn't know that yet either, but will soon enough).
Meanwhile, Congress hasn't learned the lesson of AIG (these companies all belong in bankruptcy court). $15 bln is barely enough to get the autos to the next administration. Anyway, why are taxpayers bailing out Cerberus (d/b/a Chrysler)?
JRB
12/10/08
No comments:
Post a Comment