No banker is in right mind would make trillion dollar bets the way Bernanke has. He’s supposed to be guarding against systemic risk, but his actions are amplifying it. Bernanke is a wonk (studious, hardworking, detail oriented). He thinks that by making a list of risks, he somehow knows what they all are and, after consulting some academic studies by his staff and others, can decide that these risks are manageable: “the costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant. “ Ha-ha-ha. … Continue reading Bernanke Is Increasing Systemic Risk