Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spirit. The blog name is also intended as a good-humored gesture of admiration for distinguished Chicago School economists and fellow travelers.
The American economy may or may not experience a recession in the near future, but either way nobody can tell me that this is the face of a happy man.
* The German title is in reference to this book. Old Ben could sure use some of that Sturm und Drang spirit right now.
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I’ve read that Goethe actually added a disclaimer to later versions of the book, something along the line of “Caution–do not let this book persuade you to actually kill yourself.”
Bernanke isn’t unhappy. He is receiving a message from the spirit of Arthur Burns.
He is actuall jovial about the economy. But, that kidney stone … .
Yers, young, impressionable men did kill themselves all over Europe after reading the book, but that is not what I have in mind for Ben. I hope he finds a way to cheer upo and show some fighting spirit. If he pulls that kind of face too often, the ledges of high wondows all over Wall Street are going to become pretty crowded. Briefly, that is. We might lose the greediest of our generation. Did I say greediest? I meant the best of course!
If I had to put up with Jimmy Carter as Burns had to, I would have looked like that all the time. I imagine the feeling was quite indistinguishable from a kidney stone.
Don’t miss the Bernanke rock blogging.
More like G. William Miller than Arthur Burns. And just as successful.
Isn’t anyone old enough to remember the recession that took off during the Carter administration? Double digit inflation and interest rates [which for many people never returned to 3 points above prime, check your credit card]. Unemployment approaching double digits nationally and making it locally?
With Iraq off the front page, the MSM is trying to make the next crisis. Otherwise, who’s going to read or watch their product? So, its hype, hype, hype. Doom and disaster. Self fulfilling prophecy. I’m sure we’re in store for an economic ‘hockey stick’ display any day now, devoid of any historical context. We’ll see if enough of us have moved on to other media to lessen the impact of this circus.
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I think that video is a bit unfair to Ben Bernanke. He has inhesrited most of the problems it shows from Greenspan.
As long as the banks and other financial institutions don’t really know what liabilities they have and also don’t trust each other, we will be facing a credit crunch. Let’s see how that develops. As to infaltion, it isn’t double digit, but the official numbers definitively understate it. Countries whose currencies have appreciated is respect to the Dollar are facing infaltion pressure imports are becoming more expensive, but official numbers for US the claim that the American economy isn’t. Something is fishy here.
Let’s hope that the problems blow over quickly, but going into denial is no solution.
Ralf,
You underestimate the magnitude of the orgy of residential overbuilding from the sub-prime, no down, interest only, easy money regime of the last 20 years. We pigged out while the Chinese subsidized us with low and slave labor manufactured goods that kept inflation under control. But now our currency is debased and the piper is going to be paid, one way or another, quickly or slowly. But there will be pain until the housing market returns to something approaching equilibrium, the dollar is made strong again, and the financial institutions relearn discipline through blood letting as they must each generation.