Crack of Doom: Did Ben Spill the ABCP Beans?
Posted Sep 6 2010
With the Fed possessing a world-class stable of lawyers, it’s a safe bet that every jot and tittle of the boss’ sworn testimony is rock-hard supportable. Here I’m more interested in what he doesn’t say.
Hat tip to Crane’s on this one. Last Thursday Ben Bernanke unleashed a long, turgid clot of prepared Congressional testimony. (Now there’s a falsifiable statement and if you find it to be wrong congratulations on your good fortune! ) The prose was evidently so mind-numbing that even the Fed’s ace proofreaders’ glazed eyes read right through the not over-subtle typo in this sentence (towards the end) …
… However, studies of the empirical linkage between monetary policy and house prices have generally found that that that linkage is much weaker than would be needed to explain the behavior of house prices in terms of FOMC policies during this period.[refers paper's note 9] …