Good piece by George Bragues in the Financial Post:
The strangest thing about the ongoing financial crisis is that U.S. Fed Chairman Ben Bernanke has so far come out of it relatively unscathed. Except for the narrowing of some credit spreads over the last few months, economic indicators have not sustainably improved since Bernanke initially moved to address the crisis. In fact, matters have grown significantly worse.
Most observers have seen little or no connection here. But there is one. By setting interest rates too low right from the outset, Bernanke aggravated the crisis. He did so by putting a destructive chain of events in motion, starting in the foreign exchange market, then moving into the oil trading pits, the latter eventually making itself felt in the economy, and all of this culminating in the financial conflagration experienced this past fall.