The past decade saw a housing market frenzy create an economic bubble that has caused the worst global economic crisis since the Great Depression of the 1930s.
Federal Reserve Chairman Ben S. Bernanke predicts that economic growth will be “frustratingly slow” but asserts that quantitative easing - the trading of worthless dollars for Treasury bonds or mortgage-backed securities from banks - stimulates credit, not inflation, if interest rates are kept low.
Mr. Bernanke is irrational and so are the people who believe they will get easy credit and loans if they transfer their money from major banks to minor banks and credit unions. Like the major banks that cling to their tax-dollar bailouts, these lesser lending institutions know our $20 bill could soon be worth only $10, as we continue to see high unemployment and record-high poverty destroy the middle class.
Is it time to panic?