Marketwatch published an article today that was Bernanke apologia at its worst. “Bernanke hasn’t thrown grandma under the bus. If you are poor, low interest rates help more than hurt.” If you want to read this swill, it’s here.
I could only get through a couple of paragraphs before I lost it. I berated the writer, Rex Nutting, with a stream of invective on Twitter. I swore and cursed at him. So he blocked me from his feed. I expected that, and I don’t apologize for what I wrote. It was the best verbal punch in the gut I could deliver. I know that he saw it and I know that it shook him up. So be it. That was my aim.
Those without a conscience can’t understand that it’s wrong to punish those who followed the rules all their lives. My father worked hard, never took risk, and put aside whatever money he could throughout his 88 years so that when he was gone, my mother would still be ok. I promised him when he was dying that I would be sure of that. But an evil and immoral government policy hastened reaching the end of those savings and has exhausted all of my own as well, as the expenses of caring for her have grown.
I have seen this with many other families of people in their 80s and 90s. People who worked hard, saved what they could, and led lives of honesty and decency are now being punished for that by being robbed of income on their savings. They are forced to spend down their principal until nothing is left.
The fact that there are winners under this policy is not news and changes nothing. This is a transfer of wealth and misallocation of resources that steals from the righteous to give to others for no good reason. The costs that ZIRP Bernankecide imposes, both the actual costs which offset dollar for dollar the benefits that the fortunate few receive and especially the moral cost, are things that our society may never regain. The damage to our soul as a caring people is incalculable.
So I cursed out Rex Nutting for writing this Bernanke apologia. It’s a disgraceful article, representing the lowest level to which financial journalism can stoop, a perfect example of the Washington/Wall Street/academia echo chamber justifying its own existence. Meanwhile, the rest of the world suffers at its hand. Nutting should be ashamed of himself.