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THAT THE ECONOMY IS GETTING
STRONGER.
BERNANKE CAN LEAVE HIS POST ON
SOMEWHAT OF A HIGH NOTE AFTER
WHAT'S BEEN AN ROCKY RIDE.
LET'S START, DIANE, WITH TODAY'S
DECISION.
BERNANKE SAYS EVEN WITH THE
TAPER, EVEN WITH STOPPING SOME
OF THIS MONEY, ONLY $10 BILLION
A MONTH, BUT STOPPING IT,
INTEREST RATES WILL STAY LOW, HE
SAYS.
DO YOU THINK THIS IS THE RIGHT
CALL?
>> IT IS THE RIGHT CALL.
I THINK WHAT WE'RE SEEING, IS
YOU KNOW, THE FED -- TWO THINGS
THAT ARE IMPORTANT.
FIRST OF ALL, TREASURY ISSUANCED
AND MORTGAGE-BACKED SECURITY
ISSUANCES HAVE ACTUALLY FALLEN
SINCE THE FED BEGAN THIS PROGRAM
A YEAR AGO, THE NEW ISSUANCE SO
EVEN THOUGH THEY ARE TAPERING
THEY ARE BUYING A LARGER
PROPORTION OF THOSE MARKETS THAN
THEY WERE SO THEY ARE NOT REALLY
EASING UP, NOT GOING AWAY AND
DID THE PIVOT THAT WE KNEW HE'D
DO.
WE'LL LEAVE THAT PUNCH BOWL OUT
THERE LONGER THAN YOU EVER
THOUGHT POSSIBLE, AS SOME OF YOU
GET TIPSY AND THE PARTY GETS
GOING AND MORE PEOPLE ARE ON THE
DANCE FLOOR.
THE PROMISE TO LEAVE THE PUNCH
BOWL OUT LONGER THAN
HISTORICALLY, LONGER THAN PEOPLE
THOUGHT POSSIBLE, THAT HELPED TO
DAMPEN THE EFFECT OF TAPERING
ALONG WITH THE CONCEPT THAT IT
REALLY IS SMALL.
THIS IS A TOE IN THE WATER.
THE FED DIDN'T DIVE INTO THE
WATERS OF EXITING IT.
THE INTENT IS CLEAR.
BEN BERNANKE IS LEAVING WITH
LITTLE HOPE ON THE FUTURE OF
2014 BEING BETTER.
THE ELEPHANT IN THE ROOM OF
FISCAL DRAG, HIGHER TAXES,
HIGHER GOVERNMENT SPENDING, THE
21-MONTH BUDGET TAKING SOME OF
THIS OFF THE TABLE AND THERE'S
HOPE THAT WE CAN GET A BETTER
ECONOMY ABOUT THE FED PLAYING
TAILWIND RATHER THAN FIGHTING A
HEAD WIND.
FINALLY RIDING THE HORSE INTO
THE SUNSET.
>> BEN BERNANKE HAS A LOT OF
CRITICS, MANY CONSERVATIVES AND
SOME CONSIDER HIM A HERO FOR IN
HIS VIEW SAVING THE COUNTRY FROM
ANOTHER DEPRESSION IN ADDITION
TO THE STIMULUS PLAN.
WHAT DO YOU THINK HE'S DONE
RIGHT?
>> I THINK ONE OF THE BEST
THINGS HE DID IS HE DID AVERT
ANOTHER GREAT DEPRESSION.
SORT OF SERENDIPITY THAT THIS
MAN PREDICATED HIS CAREER, WAS
ALL CREDITED ON UNDERSTANDING
THE GREAT DEPRESSION,
UNDERSTANDING FINANCIAL CRISIS
AND WHAT TO DO DIFFERENT.
HE SORT OF ECHOED SOME OF THAT
SENTIMENT TODAY.
HE SAID, LISTEN, I FEEL IN HIS
OWN WAY, A LITTLE BIT
IMPLICITLY, FELT INDVINDICATED
BECAUSE OTHER CENTRAL BANKS
AROUND THE WORLD ARE NOW
ADOPTING THE POLICIES HE TOLD
JAPAN TO DO AGES AGO.
THEY ARE FINALLY DOING IT NOW
WITH SOME SUCCESS AND THAT OTHER
BANKS ARE DOING THIS WHICH
SUGGESTS MAYBE HE GOT IT RIGHT.
ALSO, WE DID AVERT ANOTHER GREAT
DEPRESSION.
THIS ECONOMY IS NOT THE MOST
ENCOURAGING ECONOMY, BUT WE
AVERTED A GREAT DEPRESSION WITH
THE WORST FINANCIAL CRISIS IN