Thursday, September 12, 2013

Blinder Lies

Former Fed vice chairman Alan Blinder  was on CNBC's "Squawk Box" Wednesday morning, continuing to promote Janet Yellen for Fed chair. It really doesn't matter what establishment crony gets the position, but it should be made clear that Blinder is spreading total myth when he promotes Yellen as a great forecaster.

On "Sqauwk Box," he said:

She was one of the early members of the Federal Open Market Committee to see that this [housing crisis] was not just a financial catastrophe. This was going to really damage the real economy and the Fed ought to do something about it.
Blinder speaks total nonsense. As I detailed in The Truth About Janet Yellen's Forecasting Record., she never saw the severity of the financial crisis until it was very obvious.

1 comment:

  1. Since (1) Blinder said that "she was one of the early members" to see a larger problem, and (2) she did not see the problem until well after the problem hit, does it mean that the other members are even worse at forecasting than Yellen is?

    So, the blind leading the Blinder? (What an appropriate name!)