“Bernanke is an orthodox monetary conservative, adhering to scripture taught by Milton Friedman, not John Maynard Keynes. As Keynes taught, what excites the “animal spirits” of businesspeople is the sight of willing customers with money to spend, eager to buy stuff. But consumer demand is exactly what bankers and business guys can’t see at present. The economic problem is located on the demand side. Alas, the country is still governed by policy-makers enthralled by supply-side theory.”
Read Mr. Korten’s commentary on upcoming Fed action here.