Blame It on Greenspan

• Posted by Greg Harmon
• on September 19th, 2013

It is 10:00am and already I have heard more about how Ben Bernanke confused the market, leading it on as if he would cut off the heroin, only to deliver a new fix, than I care too. But even in this deluge of commentary I have to wonder. What has happened to the art of listening, comprehending and reading? Ben Bernanke has been nothing but crystal clear about his monetary policy. He is an open book. Look at his record. he has shortened the timeframe to release the FOMC minutes. he has added press conferences after the statements to explain what the Committee thinks. And what does he say? he has said all along that there will be a need to reduce stimulus when the economy is ready for that. But he went even further and told us all what to look for to show that the economy was ready. He pointed to the unemployment rate and growth and inflation. And guess what happened? None of his criteria for cutting stimulus were met, so he did not do it.

Ben Bernanke is not the problem. He is almost like that guy who has no friends because he does not know when to stop telling the truth. The real problem is Alan Greenspan. For almost 20 years Mr. Greenspan ran the Federal Reserve with a completely opposite view. He went out of his way to try to obfuscate anyone who was listening to him. The rumor is that he and Andrea Mitchell got married at city hall so that she could be certain that he did sign the marriage certificate and agree to be married. The investing public and media got so accustomed to trying to figure out what he really meant that it became a part of the fabric of the Federal Reserve. But times change. Bernanke is not Greenspan (I hear he is considering this epitaph for his tombstone, “I was not Greenspan!”). The parlor game has to stop. It has been 7 years since Greenspan left the Fed. Forget about him. Stop making your life or job harder than is should be. The Bernanke era is coming to a close and we can only hope that the openness continues under the next Chairman.

See also:

Bernanke Reaction

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