Bernanke Confuses

OK. Now I get it. The key qualification for any aspiring Chairman of the Federal Reserve Board goes as follows:

Give a long awaited speech outlining Fed policy.

Give a spirited and detailed defense of that policy.

Clearly explain that although that policy is a little unusual its risks and costs are far outweighed by its benefits.

Give lots of examples of said benefits.

Refer to the current economic situation as disturbing, not very good, and otherwise grim.

Explain at length that the longer the grim times linger the more damage is suffered both now and down the road.

Re-iterate that last bit about down the road. Make sure everyone is clear that action is needed to limit that down-the-road damage.

Double down on the grim.

Emphasize the call for action.

The need for action. And the urgency of said action.

Shout out loud that urgent action is absolutely necessary.

And.

Then.

Do nothing.

Maybe there was a sentence in Bernanke’s speech today about the need for inaction that somehow trumps all the other sentences that called for immediate and big action. I don’t know. I must have missed it.

Confused?

I am.