Fed Chairman Ben Bernanke is puzzled by the pace of the economic wreckovery:
The economy’s continuing struggles aren’t just confounding ordinary Americans. They’ve also stumped the head of the Federal Reserve.
Fed Chairman Ben Bernanke told reporters Wednesday that the central bank had been caught off guard by recent signs of deterioration in the economy. And he said the troubles could continue into next year.
“We don’t have a precise read on why this slower pace of growth is persisting,” Bernanke said. He said the weak housing market and problems in the banking system might be “more persistent than we thought.”
The is the folly of central planning. They believe they can create an economy and make it do what they want it to do or “stimulate” it when it struggles. The shocking revelation, at least to The Ben Bernank, that central planners may have not been able to revive a struggling economy, despite bailouts to rent-seeking businesses deemed “too big to fail,” including financial institutions and automakers, massive spending; I’m reminded of truism from F.A. Hayek, a Nobel Prize winning economist, from his book, The Fatal Conceit:
The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.