trumans was politically weakened. paul: everybody was saying only a month ago or two months ago that bernanke and the fed saved the world from great depression, that they d intervened when they had to. they had to ease money, that was the complaint and that was some of the senators made that argument. first of all, everybody wasn t saying that. paul: not mary, that s true, that s true, not us, but the popular view. i think one thing that concerns some senators is the fact that ben bernanke had never acknowledged the fed s role in 2003 and 2004 in creating the asset bubble. he has never acknowledged the failure of the fed to do its supervisory job and now he wants more regulation and he blames the whole crisis on regulation rather than on monetary policy so this brings up the question of is he the right person because he has so much discretion, i mean, the fed
where the disconnect is. why not the compulsion to vef the money? it s there. folks want to go and take that money and expand their businesses and hire more people. i ve seen it. it s going to happen. but you re saying they should be compelled to? can we go back? the fact we re lowering the tax rate that s not true. i got to tell you, if you go back, there s no evidence that tax cuts actually create growth. that s a bipartisan thing. post-financial crisis under obama, you didn t get growth from tax cuts. you have an asset bubble because wealthy companies have tons of money, buying back their own stock, that s what s going to happen if we give money that
obama, you didn t get growth from tax cuts. you have an asset bubble because wealthy companies have tons of money, buying back their own stock, artificially inflating the market, that s increased the wealth gab, and that s what s going to happen if we give money that have money on the balance sheet already. there is something to say about if you go back to reagan, the last time we had fundamental tax reform, not just tweaking of the rates, and doing nothing on the corporate side, 15 million jobs were created, and per capita income went up 20% in the following year. my only question is democrats like to make the government make people do things. one at a time. republicans on the hill are saying that this will compel businesses. we ve had businesses on the record saying we re not injecting this money into the pockets of the american people. they said we re giving this money to your shareholders.
of oil like frying oil. that s an insane that s like tripled in price. so that s been crazy. the highest inflation in 40 years i, highest inflation in 4a years. so the official numbers which of course bearum no resemblance to the day to day reality, everything is mucher more expensive. and that s especially true of the big things. the big things are o the most expensive of all the why is that simple? the declining power of us currency has created an unprecedented asset bubble . that means investors around the world are rushing to convert increasingly worthless u.s. dollars into objects that might hold valued over time. so anything tangible costs a lot more , a lot more than it did a year ago. there s noo mystery in this. this is exactly what happensn when you pump too much money into an economy. the money becomes worth less son where is this going?fo how is it going to unfold? nobody believes the interest
you have corporate profits an all time high. so i think it was an indication by bernanke that we are seeing these indicators and these good forecasts and that please look at this because we may if we hit 7% unemployment, we may start ultimate putting on the brakes as it relates to easy money, if you will. john, is this a bubble about to burst? are we about to see what happens to the housing market? no i think what happened is a bubble was starting to form because of the low rates. the market was getting ahead of the real economy which is still a little lackluster in a lot of areas especially employment. and what the federal government wants to do is keep encouraging growth in the economy, yet stop an asset bubble forming like we had in real estate in the 2000s. so maybe keep the heat on so you don t have to pull the stimulus away. you don t want to have to start