Bend the Fed by Bill Sardi

Mr. Bernanke doesn’t rate with this central banker
At least one central banker isn’t at all impressed with Mr. Bernanke, and he is none other than Hervé Hannoun, Deputy General Manager for the Bank for International Settlements (the central bankers bank) in Basel, Switzerland. Oh, Mr. Hannoun doesn’t take Mr. Bernanke to task by name, but he is certainly pointing a recent message at Ben, not others.
Hannoun says central banks have lost their mandate by expanding their balance sheets (taking all those bad home mortgages off the accounting books of lenders and placing them on the public's liability ledger). He says four years after the start of the credit crisis beginning mid-2007 there is still no exit strategy from the unconventional monetary policy actions that are extolled in Lowenstein’s article about Mr. Bernanke. Hannoun says: "This is a dangerous precedent if it takes hold in the minds of policymakers and of the public."
Hannoun goes on to say: "And while markets and governments are all too eager to see central banks come to the rescue, they are bound not to be pleased to see them withdraw. All this increases the risk of exiting too late and too slowly, as has been the case all too often in the past."
Hannoun forcefully says: "Fiscal policymakers (how could he not be talking about Bernanke?) should also… make clear that inflation cannot be the solution to the problem of government debt overhang… and that monetary policy should be refocused on maintaining lasting – and the key word here is "lasting" – price stability." The Federal Reserve has a miserable track record on that measure of performance.
Fixing today with yesterday’s answers
Bernanke is a student of the Great Depression of the 1930s. And in reading Lowenstein’s article, you get the distinct idea that Bernanke is fixing today’s unprecedented worldwide financial crisis with solutions to the 1933 collapse in the stock market.
Lowenstein: "By 2008 Bernanke was confronting the very type of banking meltdown he had spent his academic life studying. No one was better suited to the job; indeed, the Fed had adopted the remedies Bernanke had outlined in his 2002 address nearly point for point."
Lowenstein quotes Stanley Fisher, Bernanke’s thesis advisor at MIT and current governor of the Bank of Israel to say that Mr. Bernanke found that the failure of the 1930s was not a matter of not printing enough money. "What Bernanke discovered was that it wasn’t the quantity of money, it was that the banks stopped lending." 
Bend the Fed by Bill Sardi complete article here