John Hussman writes:
Over the short run, two policies have been primarily responsible for successfully kicking the can down the road following the recent financial crisis. The first was the suppression of fair and accurate financial disclosure - specifically FASB suspension of mark-to-market rules - which has allowed financial companies to present balance sheets that are detached from any need to reflect the actual liquidating value of their assets. The second was the de facto grant of the government's full faith and credit to Fannie Mae and Freddie Mac securities. Now, since standing behind insolvent debt in order to make it whole is strictly an act of fiscal policy, one would think that under the Constitution, it would have been subject to Congressional debate and democratic process. But the Bernanke Fed evidently views democracy as a clumsy extravagance, and so, the Fed accumulated $1.5 trillion in the debt obligations of these insolvent agencies, which effectively forces the public to make those obligations whole, without any actual need for public input on the matter.
No taxation without representation. Wasn't there something about that back in the early days of the USA? Oh yeah, right, that was the entire economic basis of the country's formation.
Since Bernanke is only representing his own point of view (and perhaps that of some Banksters who are at the receiving end of this insane wealth transfer) about how to manage the US economy and currency, then let him pay the bill for it.