Thursday, February 28, 2008

Another day and Ben Bernanke smokes more crack

Federal Reserve chair Ben Bernanke today told Congress the nation isn’t “anywhere near” the dangerous stagflation situation of the 1970s.:

“I don’t anticipate stagflation,” Bernanke told the Senate Banking Committee. “I don’t think we're anywhere near the situation that prevailed in the 1970s.”

Oh, really? Well, Big Ben, let me help you read the tea leaves.

Some people are worried the credit crunch that has followed upon the collapse of the housing bubble, and related credit alphabet soup “instruments,” could also affect commercial real estate.

Oil futures closed today at $102/bbl.

The dollar hit another new low against the euro, which broke the $1.53 mark.

So, credit is continuing to tighten up while inflation is continuing to loosen up. And, you’re not worried about stagflation.

Time to trademark your nickname: Worst Fed Head Since Greenspan™, because you’ll keep it after somebody else replaces you, unless that person is really clueless.