full proceeding of House FinServ Cmte Bernanke testimony

link to full proceeding of House Fin Serv Cmte Bernanke testimony (windows media)

Barney Frank seems to think that doom-and-gloom predictions that have not materialized disqualify further inputs from those sources, whereas the thing to remember is that the administration had predicted 4% GDP growth early in '10 and 7% late in '10 and the reality was a little over half of that prediction - of course that other wonderful prediction that unemployment would be contained under 8% by the stimulus packages turned out to be a little demon that is still making insulting faces at the genie

whatever recovery there is results from the extraordinary resilience (speaking of the buildup of savings), creativity (speaking of the likes of Apple) and work ethic (speaking of those whose labors have increased from payroll cuts at the firm) of the American people, who have not stopped doing the right thing just because their government is frustrating and infuriating them relentlessly, by refusing to act in alignment with their actions, stubbornly reflating failed ideas the people have rejected, certainly intuitively and increasingly consciously

an example is indefinite suspension of mark-to-market accounting, the institutionalization of the TBTF concept as a "necessity", after having raised it as a "problem", the rather naked cronyism between finance and government that has infuriated the people - an example is the stubborn denial that a massive paradigm shift has occurred in the perception of home ownership and real estate, not to mention labor mobility in the age of globalization and the life options presented, i.e. stimulus designed from past behavior will not have the expected effect (this of course is a perpetual hazard of the Keynesian way)

frustrating savers with artificially low interest rates does not make sense, because the loss of appetite for credit has nothing to with the rates in this present time, and is not going to accelerate significantly for a longish while, whereas acceleration in savings will enable banks to get healthier quicker - as the whole system is restructuring and rebalancing in a typically complex, human way, essentially what I am saying is that as far as employment is concerned getting smaller, local banks lending is the key, not a mountain of capital reserves at the top, and of course I am always also saying, not by "policy", by freedom

link to full proceeding of House Fin Serv Cmte Bernanke testimony (windows media)