Bernanke on CBS’s ‘60 Minutes’ - Real Time Economics - WSJ

BAILING WATER VS. FIXING THE CRACKS IN THE HULL: Bernanke on CBS’s ‘60 Minutes’ - Real Time Economics - WSJ

One of the old sayings I used to like is that "its the net not the gross".

For the small business person noted by Mr. Bernanke, the fact that interest rates might be low isn't as material as the present value of net after tax return for taking on risk and work. This also applies to big businesses and international corporations - who have options outside their local community and the US.

Bernanke may be making a valiant effort to overcome the fiscal drag from Democratic (and some Republican) policies, but, if it is 'pushing on a string' - then the outcome will be more like the 1970's in the US than the 1980's.

Clearly the states are in a whole over too much spending and too much given to public employees via unions. The Feds are borrowing (and would like to tax) a greater share of GDP. This reduces the funds to support education and economic investment.

Clearly cheap loan money isn't the answer to what is ailing the US economy. The Democratic expansion of government is also clearly exacerbating the lack of jobs rather than helping to ameliorate it. But, the Democrats haven't a clue that they and their policies are part (a big part) of the problem.

So, Bernanke may be trying to get a bucket brigade going to bail out an economic ship with a number of major breaks in its hull, but the Administration captaining the ship is deluded to think the structure of the ship is in good shape.

If the high tech and platform corporate economy may be doing OK, it may be because they are on the top deck of the ship where there are lifeboats and it may also be that they are already moving away from the ship in these lifeboats. Again, the Administration/captain may not like to see these people leave, but the Administration doesn't understand that the water is building up in the ship and it makes no sense to stay on board a boat that's effectively wallowing in the water making little headway.