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August 30, 2009

Bernanke Has Done An Horrific Job

He has done an horrific job as Fed chairman. Certainly if you want to say he's done a good job in temporarily easing the pain, he's done that. But with major negative long-run consequences. He's simply repeated the mistakes of Alan Greenspan, who did the same thing, who inherited a busting stock market bubble in a recession. And he “saved the economy.” He made sure that the recession of 2001 and 2002 was very mild. Yet the actions he took to do this is the reason that we had all the problems in 2008.

We would never had a housing bubble, we wouldn't have had a sub-prime mortgage crisis, had it not been for what the Fed did to ease the pain of that recession. And that, of course, was why Greenspan was so widely heralded as the greatest Fed chairman ever, when I correctly labeled him the worst Fed chairman ever. Now Ben Bernanke is receiving accolades for making the same mistakes.

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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