At a recent town-hall meeting, Federal Reserve chairman Ben Bernanke said he had to ‘hold my nose’ over bailouts. I wish he had expressed some of those misgivings when lobbying for the bailouts last year, instead of the “do it now!” testimony he actually gave. (On a side note, here is a video of Bernanke in 2005 saying there is no housing bubble, housing prices would not decline, and in 2006 that housing would not have a drag on the economy, while car sales would climb; and in 2007 that the subprime market was not a problem. Just point this out because a lot of intelligent folks seem to trust Bernanke’s judgment more than their own).
In a similar story, Treasury Secretary Tim Geithner insist that the path to economic recovery is through lower deficits. It is too bad that earlier in the year, he was advocating that the path to economic recover was through a $787 billion in a deficit-funded stimulus bill.