Monday, March 16, 2009

The only way is up?

Developments in the last day highlight the power/effectiveness(?) of the optimistic central bank forecasting.

I sincerely hope he's right and the market seems to have confidence in his projections. Like Tricet in another recent post I feel he has very little to lose and a lot to gain by making optimistic projections.

However, I cautiously note that Bernanke also said the following at Milton Friedman's 90th conference in 2002:

"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

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