Bernanke defends models that missed crisis

A drunk Keynesian on his way home from a bar one night realizes that he has dropped his keys. He gets down on his hands and knees and starts groping around beneath a lamppost. A policeman asks what he’s doing.

“I lost my keys in the park,” says the Keynsian.

“Then why are you looking for them under the lamppost?” asks the puzzled cop.

“Because,” says the Keynsian, “that’s where the light is.”

Of course the drunk Keynsian had drank too much Animal Spirits!

I intend to look for the speech(if you have a link to the video please post). The very thought that Bernanke would claim that a solvency crisis was a liquidity issue makes me really question the intelligence of our Fed officials.

More on how Keynsians get stats wrong.

http://www.youtube.com/watch?v=D9kfMx8Llcc&feature=player_embedded

The puur genius of pelosi....... "For every dollar a person receives in food stamps, $1.79 is put back into the economy", and that, "It is the biggest bang for the buck when you do food stamps and unemployment insurance,"

Yep, one can defend food stamps on humanitarian/social policy grounds, but it's not stimulus

Right, Jersey Housewife, because when you take your foodstamp dollar to Bohack's they put it in a drawer and it just stays there.

If only RS & juliag understood the concept of the velocity of money, it would be so, so much easier. But when you're talking to people who support the gold standard because they believe that the government would actually exchange your money for gold, there's no hope.

More genius from pelosi...

"Every week we don't pass a Stimulus package, 500 million Americans lose their jobs.''

"I believe in natural gas as a clean, cheap alternative to fossil fuels. It's cheap, abundant and clean compared to fossil fuels."

"We have an estimated 12 million illegal immigrants in our country who need our help along with millions of unemployed minorities. Stock market profits taxes could go a long ways to guarantee these people the standard of living they would like to have as "Americans.""

"First Bush cut taxes for the rich and the economy has rebounded with new record low unemployment rates, which only means wealthy employers are getting even wealthier at the expense of the underpaid working class."

Lets see alanhart.... The government gives someone $500 in unemployment benefits. Where does the $500 come from alanhart?

From the people who benefit from a robust well-flowing capitalist economy, including those who spend money that's provided as a safety net by the government.

The government is the key organization that facilitates robust well-flowing capitalist economies, so places where government is marginalized -- like Liberia -- fail.

Gov't does have the role of ensuring a level playing field, that contract law is enforced. Red tape and redistribution of income is another matter.

But the point is that the wealth transfer or theft from one person to another doesn't have a multiplier effect. ( That's just plain pelosi stupidity.)The welfare recipients pay off utility bills and rent or mortgage payment and buys food. How the hell does that create jobs. Does the utility company hire another person because an existing customer pays a bill alanhart?

I think the point is that if gov't spends more, then consumers have to either in aggregate consume less or save less.

alan things his extreme example, Liberia, is some valid point, when really it is idiotic. Why not use a dictatorship in Africa as an example of the ideal liberal model?

This liberal idea that a person who earns a dollar and spends it (or saves it which leads to it being invested through the banking system) is worth less than if it is redistributed to someone else who spends it, is nonsense. Not surprised steve believes it.

All u fkers sound like you've taken unemployment at some point and will be first in line for social security. Stfu

For the record, I love my $200 twice a month cleaning lady. And if she's illegal, it's the teabagger vigilantes' fault. You let one in, WTF?

Oh, I get it don't blame the vigilantes, it's hard to pick out the illegal Irish IRA terrorists bc minority profiling donset work.

I dont think govet should have cut benefits right now. whats another 6 months or a year. Its not that much and we're so close to everything getting better.

The immigration policy => most legal racist policy in the lands. But I take sOlace in the fact
1) japan
2) France
3) Iran
4) Egypt
5) north korea
Are worse