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a propos bernanke analysis August 17, 2007

Posted by agarvin in comedy, econ.


by Johnny Debacle

Hi, my name is Ben. I am in charge of the economy, more or less. To my left, a man far less important. To my right, Greenspan. The three of us held a secret meeting in our hidden Fed safehouse. There we drank, ate, told some amazing jokes and then decided to cut the Fed Discount Rate 50 basis points.

The rate cut was approximately this big. The technical issue as to what the Discount Rate actually means is largely irrelevant — the takeaway for you is that we cut a Rate 50 bips. Does that make you happy?

I knew it would make you happy. It made me happy too, that’s why I did it. Some have concerns that this is a ham-handed intervention into a free market and worse, a temporary salve, that will give people a delusional sense of comfort. These are really good points, so let’s switch to a profile shot.

As I mentioned above, I am in charge of the economy, more or less. And the economy, more or less, is the stock market. As you can see there is nothing temporary about today’s bump in the DJIA. Also did I mention that the cut was this big?



1. KG - August 18, 2007

gq puts benny boy at #23:

Chairman, Federal Reserve

It didn’t take this former Princeton econ professor long to emerge from Alan Greenspan’s shadow. And while he hasn’t yet faced a huge crisis, he’s kept market confidence high, largely by displaying a trait that Greenspan never developed: openness. “I’m most impressed with his transparency,” says CNBC’s Maria Bartiromo. “Investors understand the markets more than they ever have, so it’s important for people to know what the Fed is thinking. It’s been a huge positive for the economy.”

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