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In the Jan. 8 article, “Outlook is mixed for 2009,” the commentator (Gregory Clark) seems highly biased. Keynesian fiscal policy and dangerously loose monetary policy is what caused the “subprime mortgage crisis” in 2007 and 2008 — not a lack of regulation. U.S. interest rates were artificially low from 2001 to 2004, and this cheap credit fueled the bubble in real estate.

When inflation pushed U.S. Federal Reserve Chairman Ben Bernanke to raise rates in 2005, this burst the bubble. Now Bernanke is irresponsibly printing money in a reflationary attempt that could result in hyperinflation, since the U.S. dollar is the world’s reserve currency. Why are the REAL causes of the crisis not mentioned?

jonathan kay

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