Earlier today, PIMCO managing director Paul McCulley took to the company blog to offer a word of congratulations to Ben Bernanke. “Bravo, Ben,” McCulley, a fan of QE2, wrote. How has the mustachioed investor come to the conclusion that the Fed’s program is the right move for the economy? It passed his litmus test when it was panned in equal measure by both smart, savvy individuals and Sarah Palin. Sayeth McCulley:
It brings me great angst to observe professional critics – many of them acquaintances and friends of mine – rhetorically beating Fed Chairman Ben Bernanke about the head and shoulders for launching QE2. At the same time, the fact that Sarah Palin has joined the chorus brings me great joy. If what Ben is doing offends both the learned and the unlearned, then he is clearly acting unconventionally relative to orthodoxy. And this is good, very good.
So just, you know, get on board. And if you can’t get on board, just shut the hell up and take it. This is happening, so buckle up. Read more »
“Did Ben Bernanke see the crisis?” Nassim Taleb asked on Bloomberg TV today. “No,” Taleb answered himself, “He was flying the plane and he crashed the plane…[Bernanke] reminds me of the LTCM people. They had brilliant people with great academic records and they blew up the fund and almost blew up Wall Street…Bernanke is someone who talks about returns without talking about risk. It’s identical to a pilot who is talking about speed — not talking about safety. The measures he is using, this quantitative easing, may work but should it fail the risks are humongous.” Read more »
Things look, you know bad, but really, nothing is fucked. Read more »
Someone’s gonna be splurging at Jos A. Bank tonight. Read more »
Facial hair, of the ‘stache variety. One used to have an epic handlebar, as evidenced by his Harvard yearbook photo and the other wears a fake and goes around asking Deutsche Bank investor relations bunnies if he can interest them in a ride. Read more »
Ben Bernanke is looking into Goldman’s Greek shenanigans, which may or may not have been strictly kosher- depending on if you pray at the House of LB or the house of Taibbi. The deals were brokered in 2001, so yeah, nine years seem about a reasonable amount of time for the Fed to start worrying. Bernanke, testifying this morning before the Senate Banking Committee, said that the ever-so-quick-to-take kids over at the SEC don’t want to miss on the action either. They’re “interested in the issue.”
Mr. Bernanke said credit default swaps can be useful in hedging, but added, “obviously using these instruments in a way that intentionally destabilizes a company or country is counterproductive.”
Bernanke won’t be able to testify tomorrow before the House Financial Services Committee on the Fed’s exit strategy, because he’s “snowed in.” Right.
What should Ben do with his snow day, besides snow angels with Timmy?