On February 1, 2006, Ben Bernanke took over as Chairman of the Board of Governors of the Federal Reserve System. This is his final day on the job.
In preparation for his reign of error, students at the Columbia Business School (CBS) produced one of the great music videos of all time. In it, the singer warned of rising interest rates (“bips,” or basis points) and an inverted yield curve (90-day T-bill rates above 30-year T-bond rates), which soon happened. Then came the collapse of 2008-9.
So, as Dr. Bernanke rides into the sunset, leaving behind a monetary base 4.8 times larger than when he arrived, let us sing along.