Tag: Bernanke wins Nobel Prize

Guest Post by David Stockman

Oh, puleese!

Ben Bernanke got the Nobel Prize for his early 1980s work on, well, why banks exist!

That’s right. What all students of banking knew 100 years ago—-that banks are inherently risky because they lend long and borrow short—got gussied up into a fancy theory of “maturity transformation”, and a further claim that the severity of the Great Depression was owing to the failure of maturity transformation in the private banking market.

That proposition, of course, implies that banks and other financial intermediaries are inherently defective and need the helping hand of the central bank to ameliorate their mistakes. Or as Fed and Bernanke fanboy Greg Ip wrote in the WSJ this AM:

Continue reading “David Stockman on Ben Bernanke’s Risible Prize”

Submitted by Steve Z.

Guest Post by 2nd Smartest Guy in the World

When one of the most sociopathic and mendacious economists whose predictive track record was around 0% is awarded the Nobel Prize on the eve of the Greatest Financial Crisis that he was instrumental in creating with his profligate QE money printing, you know we have finally reached peak Ponzi.

by Tyler Durden

The Nobel Memorial Prize in Economic Sciences was awarded to former Federal Reserve Chair Ben Bernanke and two others for their research in the 1980s on banks and financial crises.

Bernanke served as chairman of the Fed between 2006-14 and famously unleashed a tidal wave of debt monetization by the central bank during the GFC over a decade ago to save the so-called ‘too big to fail’ banks. At the time, the Fed’s balance sheet was approaching $2.5 trillion. Multiple rounds of money printing later and a massive expansion during the Covid crisis, the balance sheet stands at around $9 trillion today.

Continue reading “The Nobel Criminals: Ben Bernanke And Two Others Win Nobel Prize In Economics For Crisis Research”