"What you are getting is a stimulus at the very wrong moment," Bernanke said at the American Enterprise Institute, a Washington think tank, Bloomberg reported Thursday. "The economy is already at full employment."

Stimulus packages are used when the economy is flagging. When the economy does slump in the future, there may be few reserves to spend to get it going again. Bernanke predicted a "Wile E. Coyote" moment when the fallout hits, referring to the endlessly failing character in the "Road Runner" cartoons.

The stimulus "is going to hit the economy in a big way this year and next year, and then in 2020, Wile E. Coyote is going to go off the cliff," Bernanke warned.

Comments: Be the first to add a comment

add a comment | go to forum thread