On Sat, Aug 29, 2009 at 3:57 PM, Doug Pensinger<[email protected]> wrote:

> In your initial post in this thread, particularly in the last
> paragraph, you seemed to be belittling the idea that we are in the
> midst of a major economic crisis.  That's what I was responding to.
> Perhaps I was mistaken.

I'm not sure how to rate the severity of an economic crisis on any
absolute scale, since the complexity of a large economy such as the US
defies any such simple metrics. So I did not mean say that there was
not (or was) a bad situation.

My point was rather that Bernanke, and others like him, were invested
in making the situation seem dire AND that unless there were swift and
large government intervention, that the consequences would be
inconceivable. After painting that picture, and intervening, Bernanke
et al. then began proclaiming how their intervention had prevented
such a calamity. All with no real proof -- in fact, the success of the
whole scheme depends on there being no possible way to disprove their
alleged genius and heroics --  but just scare tactics and bluster.

So, it was a one-two punch. Make the situation sound unimaginably bad,
and then persuade people that he saved them from disaster.

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