My lioness asked me in interesting question this evening: "Who do you like better, Bernanke or Greenspan?" This stopped me cold because the question never occured to me. After a moment I answered; "Actually, I don't really care for either of the bumbs." I told her that I don't like Bernanke because he believes in setting "inflation targets". I told her that (IMHO) this is akin to giving a blind man a target pistol and telling him to hit the bulls eye! The assumption behind inflation targets is that we understand our financial system, it's causes and effects, it's dependent and indepent variables. I think the current crisis is evidence that we really don't understand these things. If you want a sobering read, do some research on Collateralized Debt Obligations!!!
I told her I don't like Greenspan because he rejected the Fed's role in anything but the money supply. Basically he said (and I paraphrase): It's not the Fed's responsibility to react to asset prices. Meaning he didn't give a damn if there was an asset bubble and nobody could present him convincing evidence that there really was an asset bubble. To this I say: YO, GREENSPAN! Get it now?
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