Scared Monkeys Discussion Forum

Bernanke’s attempt to re-embrace the free market are pathetic:

“Having institutions that are too big to fail also creates competitive inequities that may prevent our most productive and innovative firms from prospering. In an environment of fair competition, smaller firms should have a chance to outperform larger companies. By the same token, firms that do not make the grade should exit, freeing up resources for other uses. Our economy is not static, and our banking system should not be static either.”

We know Bernanke is just hamming it up for the audience. Because if he really thought that big companies should fail and small ones should prevail then the Federal Reserve would have let GoldmanSachs, Citigroup and Bank of America go bust in 2008 rather than pillaging the taxpayer to prop them up.

But we can see other evidence that Bernanke and the Federal Reserve have no interest in embracing “an environment of fair competition”. The evidence is that in 2009 a grand total of 140 US banks failed.

And already this year, another 37 US regional banks have gone bust.

How many regional banks did the Federal Reserve bail out? None.