From time to time I post quotes from others regarding Ben Bernanke.
Here is one from this week’s Barron’s (June 4) “Mailbag” section. It is a quote from J. Eftin Frenett. While I don’t necessarily agree with (all of) it, I thought it was an interesting perspective and one that deserves contemplation:
To the Editor:
The Federal Reserve’s Ben Bernanke is like an engineer who fails to properly define system scope. While the models and simulations appear robust, real-world application leads to seemingly inexplicable failure. What Bernanke has failed to account for are the resources and circumstances out of his control.
The coming crash in U.S. financial markets will be triggered by failures overseas. Investors will suddenly realize that the appropriate risk premium for even top-tier assets is far higher than what they had previously believed.
J. Eftin Frenett
Spencerport, N.Y.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 1289 as this post is written