random notes

Bernanke Says Low Rates Didn’t Cause Housing Bubble (Update2)

Jan. 3 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the central bank’s low interest rates didn’t cause the past decade’s housing bubble and that better regulation would have been more effective in limiting the boom.

“The best response to the housing bubble would have been regulatory, rather than monetary,” Bernanke said today in remarks to the American Economic Association’s annual meeting in Atlanta. The Fed’s efforts to constrain the bubble were “too late or were insufficient,” which means that regulatory actions “must be better and smarter,” he said.
...

... he is probably right ...
... the dismantling of oversight over the banking system ...
... has made profitable to create the bubble ...
... and the dismantling of oversight ...
... was the result of excessive power of the financial world ...
... over the public interest ...
... and this has not changed since the creation of the banking cartel ...
... at jekyll island ...
... so the only practical solution ...
... is nationalizing the federal reserve ...
... and put in charge fbi, cia and irs ...
... inspecting the books ...
... of "all" financial institutions in the country ...