financialsense.com / By Danielle Park / February 28, 2013
Bernanke’s testimony to the House Finance Committee yesterday morning is disturbing in so many ways. But only a few of the committee representatives are wise enough to ask the right questions. In an early part of the hearing Bernanke was asked what we should be saying to seniors who are struggling to make ends meet with 100 year lows in interest rates today. (Not just seniors, this is a problem for everyone–pensions, insurance companies, individuals–everyone who is needing to keep capital secure and earn some reasonable level of guaranteed income.) Bernanke had offered the insane, reckless response that we should take money out of guaranteed deposits and put it into the stock market to earn more yield.
Representative Scott Garrett, R-New Jersey highlighted the ludicrous nature of this comment to Bernanke in his 5 minute questioning time. Big Ben was quick to recant with “I was not giving financial advice, I apologize…”
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