Bernanke presented himself as an expert on The Great Depression; corporate media ran with it. Sadly, it seems he learned the wrong lessons. There are reasons TGD lasted as long as it did. He should have studied the period 1913-1928 instead.
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True. That is where all the juice was. Actually the Great Dep was typical overhang of excess debt (WW1). The fact the Fed dropped the ball only added to the miserly. Classic deflationary spiral.
The #fed also started buying treasuries during the war, something that moved it from "real bills" which was the original premise put together by people like Henry Parker Hills. This caused the gov't to have a piggy bank to...
The Fed came into being in 1913. As early as 1920s (maybe earlier) it moved away from its core mission & N2 setting interest rates & buying securities. The Fed was supposedly created to stop panics; they increased in frequency & magnitude.
...siphon from the private sector. When the buying died down, banks turned to private lending at the same rate. Oops.