Ben Bernanke, who helped guide the country through the 2008 financial crisis, is calling out the Fed. Bernanke, who served two terms as Fed chairman, told CNBC, “The question is why did they delay that…Why did they delay their response? I think in retrospect, yes, it was a mistake.” Yet, he said he understood why current chairman Jerome Powell waited. “One of the reasons was that they wanted not to shock the market,” he said. “Jay Powell was on my board during the Taper Tantrum in 2013, which was a very unpleasant experience. He wanted to avoid that kind of thing by giving people as much warning as possible. And so that gradualism was one of several reasons why the Fed didn’t respond more quickly to the inflationary pressure in the middle of 2021.” In other news, the crypto crash continues and experts say it doesn’t look good. Delta Blockchain Fund founder Kavita Gupta told Fox that the crypto market is currently experiencing a “correction” from its “crazy speculative highs,” warning that “it looks like it’s going to stay.”
Fortune via Yahoo Finance/Andrew Marquardt
Ben Bernanke helped the U.S. recover after 2008 and now sees huge warning signs on inflation, stagflation and student debt
Former Federal Reserve Chairman Ben Bernanke said the U.S. central bank’s decision to delay its response to the highest inflation rates in four decades “was a mistake.”
Bernanke, who served two terms as chair of the Federal Reserve during the Bush and Obama administrations, helped guide the country through the 2008 financial crisis—another time in which the central bank played an outsized role in trying to help the economy recover.
But speaking to CNBC on Monday, Bernanke said that while he understands the reasoning behind the Fed’s delayed response, the Jay Powell-led Fed should have acted sooner to help bring down inflation rates that rose as high as 8.5% year-over-year in April.
You can read the full story, here.
What is the point of crypto?
When it comes to crypto, all the questions sort of boil down to one: What, actually, is the point of it? Crypto is supposed to be special, i.e., not like other markets — at least if you listen to its boosters. But what if it’s not? It’s felt pretty spectacularly unspecial lately.
The crypto market has been in a bit of a meltdown. The price of bitcoin, the godfather of the space, has fallen by more than half of its 2021 peak, and billions of dollars of value were lost from cryptocurrencies in a matter of hours. Coins that are supposed to be “stable” are looking anything but, and one of the major trading platforms in the space has warned users their money might not always be safe there.
The claims proponents have long made about cryptocurrency — that it’s an inflation hedge, that it’s digital gold — appear increasingly dubious. Well before the current downturn, a lot of what was going on was fishy. Hackers have stolen tens of millions of dollars in crypto, and the sector is rife with stories about various scams. One big trend in the space might pretty blatantly be a Ponzi scheme.
Continue reading, here.
Fox Business/Talia Kaplan
Crypto ‘winter is here’: Expert
Delta Blockchain Fund founder Kavita Gupta explained on Monday why she believes a “a crypto winter is here” as bitcoin traded below $30,000.
Speaking on “Mornings with Maria” on Monday, Gupta noted that “we are seeing one of the biggest dips in the [crypto] market in a long time” as prices have been “slashed down” from all-time highs.
She pointed out that bitcoin and ethereum are currently trading at about half the price of their highs and that is why she believes “a crypto winter is here.”
Gupta also noted that the crypto market is currently experiencing a “correction” from its “crazy speculative highs,” warning that “it looks like it’s going to stay.”
Read the full story, here.