Here's one:
"Dr. Bernanke, the two rounds of 'quantitative easing' that the Fed has undertaken have been enormously stimulative to the stock market, and have brought liquidity back to the banking system. And yet back in the summer of 2008, the Federal Reserve actually drained reserves from the banking system, which left the banking system in a condition of poor liquidity. That draining of reserves arguably led to the events of September 2008, when Lehman Brothers went bankrupt and the stock market collapsed. Can you tell us who at the Federal Reserve was involved in making that decision to drain reserves in 2008?"
The recession of 2008 was due to the housing bubble and the surrounding exotic leveraged derivatives built around a unsustainable mania and the subsequent collapse of the same. An irresponsible and i must add a clueless Fed helped stoke the housing bubble and when it went out of control, they over did with the tightening. If QE was a panacia for all ills, then printing money is all that's required to create a utopia. I think you will reach your uncle point pretty soon in terms of your tolerance for inflation. Be prepared ! It could be more than you could handle.
My question to Ben would be "How come you still have a job, when you failed to foresee a crises, failed to contain it, and despite those few trillion dollars addition of liabilities to your balance sheet in the aftermath of the crises, you have failed on your twin objectives of containing inflation and generating employment ?"
Edited by NAV, 26 April 2011 - 09:59 PM.