In his testimony today in the Senate he said "This (the 700 billion dollar blank check proposed by Paulson) is a precondition for a good, healthy recovery of our economy". We are not asking the banks to do us a favor. They are asking for us to bail them out, if the crisis is real. They cannot put conditions on what they will accept, we can put conditions on what we will do. Somebody needs to explain this to Bernanke. His threats of a recession are hollow. Does he not think that this massive bailout will not severely weaken the dollar and cause massive, possible run away inflation. Is not inflation the supposed boogie man the Fed, which Bernanke heads, constantly tries to minimize? The Fed has caused recessions in this country to keep down inflation. Now the chair of the Fed raises the specter of recession to pursue a very inflationary policy? What gives?
If he thinks he can scare us into giving him and his pals 700 billion dollars with no oversight, and no possible challenge, legal or otherwise, for how the money is used, he can kiss my ass.