[lbo-talk] DD & Max on Bernanke: (Thank Heavens) He's no Feldstein

Doug Henwood dhenwood at panix.com
Tue Oct 25 15:23:07 PDT 2005


Max Sawicky wrote:


>If you harken back to 1980-81 you can see how wrong things can get.
>
>The Fed is also supposed to regulate banks, and there are some activist
>groups who bird-dog their failure to do so, especially in the fields of
>red-lining and lending discrimination.

All true, but monetary policy can't solve the fundamental problems of poverty and income distribution. Sadly, a lot of populists seem to think it can. I can understand the appeal of perpetually loose money - the temptation is that it could help the bottom half of the income distribution without moving to expropriate the top half. But it can't.

Doug



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