FakeBen says: "This MarketWatch article reveals the tremendous institutional bias at the Fed towards excessive credit growth. The problem was caused by excessive credit. The solution? More credit!"

WASHINGTON (MarketWatch) -- There is nothing fundamentally broken on Wall Street that a little regulation and incentives for participants to be slightly more honest couldn't fix, said Federal Reserve Chairman Ben Bernanke said Thursday.

Bernanke's comments put him at odds with former Fed chairman Paul Volker, who said in a speech earlier this week that the financial turmoil that began last summer showed that the "new Wall Street" hadn't passed the market test...

The Fed is concerned that a lack of credit is creating a vicious downward growth spiral. "Healthy, well-functioning financial markets are essential to sustainable growth," Bernanke said.

FakeBen says: "Is there anything good about higher interest rates and less credit? According to Bernanke's statements, you would think not! But aren't higher interest rates and less credit what allows a market economy to be self-regulating, i.e. to encourage savings, to bankrupt the inefficient companies, and to prevent inflation, such that speculative credit bubbles do not arise?"

Read more at:
http://www.marketwatch.com/news/story/bernanke-nothing-broken-wall-stree... [1]