J. Eftin Frenett Quote On Bernanke

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

One thought on “J. Eftin Frenett Quote On Bernanke

  1. Ben Leet

    You may be interested in a recent report from Northeastern University scholars, “The ‘Jobless and Wageless’ Recovery from the Great Recession of 2007 – 2009, The Magnitude and Sources of Economic Growth Through 2011 I and Their Impacts on Workers, Profits, and Stock Values.” I found this report in an article by Jeff Madrick, published at New Deal 2.0 (dot) org, June 8, 2011. Also you might look at Sylvia Allegretto’s report “State of Working America, Wealth” from March 2011, published at Economic Policy Institute. I’ve been researching the economy, my blog is http://benL8.blogspot.com, and I’m not as careful or as well-informed as you, but my thinking is creative, and not without opinion. Good luck.

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