Fed Chairman Bernanke is giving a speech at London's School of Economics. Here's the Associated Press's headline:
"Bernanke: Obama Stimulus Would Lift Economy."
That's the spin that the average reader is supposed to take away, if they get nothing else. The AP, like every other mainstream press organization, is so convinced that you're stoopid, that they try to get away with blatantly biased statements like this.
You have to read Bernanke's words to get a clearer picture of what Bernanke is saying here. And what he's really saying matches closely with what I've been telling you here for weeks now:
A fiscal stimulus is fine as far as it goes. It will certainly pump up reported GDP statistics for a while, but it doesn't fix the real issues. We still have major problems in the financial system that must be solved before any kind of sustained economic recovery can take place.
The only thing I hate more than when people lie, is when they get away with it.