My memory is unclear about this... but Bernanke disagreed with Greenspan's credit cuts in the aftermath of the Dot Com bubble. Arguing it fueled a Housing Bubble which begat the Mortgage Bubble which begat the Subprime Bubble. Another bubble of sorts was the rise of the Hedge Funds, and when those group fell by the way side (poor returns), the Privare Equities began throwing money around (because credit was cheap, really cheap). Of course it wasn't just Bernanke that was questioning the wisdom of The Rate Cut but a host of arm-chair central bankers too... as well some actual Central Bankers.
Bernanke instituted a BIGGER rate cut, by 25 basis points than Greenspan's. And, just a week before a FOMC meeting to boot.
At that meeting, another rate cut was decided upon.
Wonder what sort of monstrous bubble is this going to create.
