Oh, this is so good.
One trader explains what he thinks are the origins of such Bernanke hatred:
Some guys don’t understand monetary policy and think he’s doing wrong thing.
Others think it’s immoral that markets aren’t let to clear (meaning, collapse to a point where someone will swoop in and just by). Others are pissed because they missed rally so they blame Bernanke as the exogenous factor that made them wrong. Like “if not for this STUPID policy I’d be making money.”
And then here’s Krugman’s perspective:
I don’t really know, although at some level I’m not surprised: finance types just hate, hate easy money policies, although you would think that these policies are often good for their bottom lines. I do wonder in this case whether there’s extra hatred of Bernanke because he keeps proving them wrong: they keep predicting terrible things from QE, runaway inflation, and all that,and instead the bearded academic stuff keeps turning out right.
Again, and I know at this point I’m belaboring the point, but how did it happen that me, a nobody who just reads the generic news, could be so right and those pompous overpaid hedge fund managers could be so wrong?
3 thoughts on “Origins of Bernanke Hatred.”
A clear mind, unclouded by that strongest of Wall Street emotions, greed.
I’m not completely immune from human emotions such as greed and fear, David. Maybe the trick is that I’m just aware of it, of my own and others’ fallibility.
Then less arrogance, their second most powerful emotion. I saw neither in Buffet’s quotes…
I’m sorry I missed the lively discussion with Vladimir. You’re on the right path. The dog that’s beaten too often, and fed too little, is more likely to bite the master’s hand.