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Federal Reserve Board Statement from February 7,1929, as quoted by Galbraith in The Great Crash 1929
When [the Board] funds that conditions are arising which obstruct the Federal reserve banks in the effective discharge of their functions of so managing the credit facilities of the Federal reserve system as to accommodate commerce and business, it is its duty to inquire into them and to take such measures as may be deemed suitable and effective in the circumstances to correct them; which, in the immediate situation, means to restrain the use, either directly or indirectly, of Federal Reserve facilities in aid of the growth of speculative credit.
Galbraith suggests that connoisseurs may wish to read it both backwards and forwards, but either way, it is one insanely long sentence, utterly devoid of content. It is well-known that Bernanke is a student of the Great Depression. How have inept statements like this impacted his public statements?
