I think the last two paragraphs of that reference say it all.
“Bernanke told lawmakers it’s ‘important’ for Fannie Mae and Freddie Mac bonds and stocks to rise…Paulson said the two companies are ‘essential’ because they represent the only “functioning” part of the home loan market.”
Check that out. Bernanke said it’s important for the stock market to rise (specifically Fannie Mae). How many mandates does the Fed have now?
Bernanke doesn’t seem to understand a basic principle that most stock investors do.. don’t catch a falling knife. It is ok to pick up the pieces after it fell.. but not while it is falling. Looks like he is planning to do this with taxpayer money too.
