Tuesday, September 4, 2007

"Why Bernanke's Critics Have it All Wrong" by Jeremy Siegel, Ph.D.

http://finance.yahoo.com/expert/article/futureinvest/43359

It talks about Bernanke's move and analyzed what's going on in the capital market and overall economy. He said that Bernanke's moves are right and would remind investors that real liquidity lies in stock and old fashion bonds, not in hedge funds and asset backed securities. I agree to what he says and feel that Bernanke's move is painful in the short term but will make the capital market more efficient in the long run. By providing liquidity to banks and warned speculators the government would not bail them out, Bernanke is placing a good balance between saving the economy and controlling inflation.

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