News Release

Bernanke at the Fed: Captain of the Titanic?

Professor of public affairs at the University of Texas at Austin, Auerbach is author of the book Deception and Abuse at the Fed. He said today: “The Federal Reserve operates with far too much secrecy. The officials leading the Fed today preside over an organization that is run in substantial part by the bankers they regulate.”

DEAN BAKER, [via Alan Barber]
Available for a limited number of interviews, Baker is author of Plunder and Blunder: The Rise and Fall of the Bubble Economy and is co-director of the Center for Economic and Policy Research. He said today: “Reappointing Ben Bernanke because of how he has dealt with the crisis is like giving another command to the captain of the Titanic based on how effectively he got people into life boats.

“Even his recent performance raises serious questions. Why does lending from the Fed’s special facilities have to be secret, when anyone can go to the Treasury’s website and find immediately all the loans made under the TARP? And why is Goldman Sachs still speculating like an investment bank now that it is chartered as a bank holding company and enjoys the security blanket of the Fed and the FDIC?”

Baker was one of the leading economists warning of the housing bubble and its likely negative effects. His his blog is here.

See “Did Ben Bernanke Pull the TARP Over Eyes?

For more information, contact at the Institute for Public Accuracy:
Sam Husseini, (202) 347-0020; or David Zupan, (541) 484-9167