Biting the Fed’s Hand

How is the Fed doing?

In the idyllic setting of Jackson Hole, central bankers meet, greet, and eat. Between schmoozing, they listen to papers and presentations. This last week a London School economist gave Obi-Wan Bernanke and Don Kohn a serious dressing down.

Willem Buiter presented a 144-page paper, 143 pages of which were devoted to slamming the central bank for its handling of the past year’s financial crisis. He says the Fed overreacted to what is essentially a Wall Street problem and is now risking its long-term credibility for short-term financial stability. Many of his points are well considered.

It’s good to note that only a truly healthy institution can listen to deep criticism of its core assumptions. Buiter’s critique just proves the point that our economic system is adaptive and self-correcting. His sound criticism gives room for broad optimism.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-03T20:57:40+00:00August 29th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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