Mr Bernanke, please
do what you know needs to be done. Cheap credit has caused ridiculous housing overpricing. Everyone earning minimum wage realizes that everything people need to survive has inflated in price and is continuing to do so. Maybe the cost of toys and eating out has stayed the same but healthcare, energy, and a place to live have all gone up. The price of my favorite companys has gone up as well. Food has started to rise. Easy money has made otherwise decent people awfully full of themselves. Poorly run companys are getting investment dollars. Rather than shame their egos and face the mistakes they have made they are begging and crying for more cheap money.
Do what needs to be done. Take care of the people whose jobs earn them more than their stocks. Take care of the peole working 60 hours for minimum wage and getting beat out of their time and a half. Make what little money they earn worth something more. Raise the rate .50 and warn that more raises might be coming. Let the banks struggle and learn to invest money like it is valuable because it will be.
And do not get caught up in the "cheap money is good for America" lie. Do not buy into the idea that giving money to wealthy investors is good for creating jobs for the poorest. The wealthy (people who are good at collecting and keeping money) leave as little of that money as possible to the poorest (people who are not good at keeping money).
Do the right thing. Get on board with Dennis Kucinich. Invest American money into Americans rebuilding American infrastructure and into our schools. Do not make the money available to banks. Make it available to the States. And let the states spend it. And when my friends come home tired from rebuilding the Whitestone Bridge, let them take their familys to Panera. When they come home from drilling geothermal heat wells for the Elementary School, let them drive home in a mid-size Toyota. Because lets face it. There is one thing that these businesses absolutely have to have. More than cheap credit, more than hedge fund investment, more than anything else they need someone who can buy the car and have a sandwich.
Raise the rates. Let the business community cry. And then some of the bankers and appraisers will pick themselves up and start doing the jobs they were supposed to be doing. And some of them will fail. And for their incompetence they can have shovels and brooms. And if they do a good job, I will show them how to fix brakes.