Bernanke Finds Time To Write An Op-Ed

After a stunning up day in the markets and what looks to be another one today, Fed Chair Ben Bernanke feels comfortable to stick his neck out and start declaring a modicum of victory. Surely he’s been pretty busy, but not too busy to pen an Op-Ed in the WSJ, explaining why they’re implementing the right tools to get the recovery going.

Over the past year, the Federal Reserve has actively used all its powers and authority to try to help our economy through this difficult time. Central banks around the world have also consulted closely and cooperated in unprecedented ways to reduce strains in financial markets and to bolster our economies. We will continue to do so. However, clearly the time had come for a more comprehensive and broad-based solution.

History teaches us that government engagement in times of severe financial crisis often arrives very late, usually at a point at which most financial institutions are insolvent or nearly so. In these conditions, the consequences and costs of inertia and inaction can be staggering. Fortunately, that is not the situation we face today.

The point about timing strikes us as the most remarkable and important thing here. As the crisis (eventually fades into history) it will stand apart from other equivalent instances by the speed of government action. Hopefully that will actually prove decisive.

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