Ben’s finest hour
Although written some weeks ago, we can’t but mention this piece on Fed and Ben, especially a day like today, where Ben shows off with the big Bazooka. By PIMCO’s Toni Crescenzi.
- Amid great economic stress, policymakers have missed many opportunities to improve the situation and better the lives of people.
- The leadership void in the U.S. was illustrated by the dismal display of policy dysfunction that led the country to lose its AAA credit rating. European leaders have fared no better.
- Ben Bernanke and the Fed, however, have demonstrated leadership. What is both remarkable and instructive for the outlook for monetary policy is how active the Fed remains even though it has reached the zero-bound for interest rates.
Amid great individual valor, the competent and resolute leadership demonstrated by world leaders in times of war played a critical role in uniting and inspiring people to a common purpose and in harnessing the inner strength and abilities people needed to withstand and fend off the ravages of war.
Threats to nations and the welfare of people extend beyond national security to the vitality of financial markets and economies. Leadership on this front is critical for nations to successfully battle the ravages of unemployment, underemployment, economic malaise and income disparity.
In this vein, Franklin Delano Roosevelt on March 4, 1933, in his first inaugural address spoke passionately and with determination about how he intended to lead the U.S. out of the Great Depression. The tenor of his words would be refreshing if today’s “leaders” were to utter them with the same passion that Roosevelt did:
“Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war…”
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