QUOTE
http://www.wallstreetwindow.com/drupal/node/4621
Bernanke built his career on a doctoral thesis that claimed that the Fed didn't cut rates fast enough during the 1929 stock market crash. But if you look at a chart of the Depression bear market with an overlay chart of interest rates you'll see that the Fed cut interest rates as the market topped. A few years later when the market finally bottomed you'll see that they had been lowering rates all of the way down.
What Bernanke believes is that the Fed should have cut rates all at once during the start of the bear market instead of gradually over two years. He seems to be putting this belief to work right now. It means that he is gravely concerned about the state of real estate and banking in the United States.
Bernanke built his career on a doctoral thesis that claimed that the Fed didn't cut rates fast enough during the 1929 stock market crash. But if you look at a chart of the Depression bear market with an overlay chart of interest rates you'll see that the Fed cut interest rates as the market topped. A few years later when the market finally bottomed you'll see that they had been lowering rates all of the way down.
What Bernanke believes is that the Fed should have cut rates all at once during the start of the bear market instead of gradually over two years. He seems to be putting this belief to work right now. It means that he is gravely concerned about the state of real estate and banking in the United States.