Give the Washington Post credit, in its article on Ben Bernanke's reappointment as Fed chair, it did point out that Mr. Bernanke bears considerably blame for getting us into this economic crisis in the first place. While all the other reporting emphasized his efforts to prevent a financial collapse over the last year, only the Post noted that Bernanke consistently ignored the risks building up as a result of the growth of the housing bubble.
While Bernanke bears less responsibility than Greenspan, he was a Fed governor from 2002 to 2006, and then head of President Bush' Council of Economic Advisors, until he took over as Fed chairman in January of 2006. There were few people better positioned than Bernanke to head off the growth of the housing bubble.
None of the reporting mentioned the secrecy surrounding the Fed's lending policies. Bernanke has refused to make any information public about who has received loans under the various spending lending facilities created by the Fed over the last two years, or under what terms. This is the topic of a lawsuit by Bloomberg, which the Fed lost yesterday in district court. This secrecy has also been a big factor motivating most members of the House to sponsor a bill calling for a GAO audit of the Fed.
It would have been appropriate to mention this issue in a discussion of the case for Bernanke's reappointment.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved
