Yes, it was way back in the fall of 2008, but we do know that the economy was on the brink of economic collapse. We know that the Fed brought the economy to the brink of collapse because that it is what Federal Reserve Board Chairman Ben Bernanke told Congress when he was trying to get to approve the $700 billion TARP program.

Mr. Bernanke’s memory may not extend back to last year, but the memory of the reporters who cover the Fed should. This means that when Bernanke warns that taking away regulatory powers from the Fed could lead to stability, reporters should provide this crucial piece of background as ridicule. Mr. Bernanke’s concern over the Fed’s role in maintaining financial stability is a bit like Hormel expressing concern over the treatment of cattle.

–Dean Baker

Dean Baker is senior economist at the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, including Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Read more about Dean.