LOL! I thought you were blaming him for what he did as Fed chairman?
Don't repeat the threat through 2008 causing rates to crash and exacerbate the bubble.
The bubble burst before then.
I was under the impression you were asking what I would do now that we have started QE.
No. I was asking you to do things differently, since you became Fed chairman, instead of Bernanke.
But since you are asking what I would do in the past, that's a much easier answer: no QE.
And what would that have done to prevent the situation we found ourselves in?
The bubble that popped in 2007/8 was a debt bubble created since around 87. BB inherited it, but also played a role in creating it as a Fed board member. As I said above the correct response to deleveraging is to allow it, but put in place policies to quickly shift money from speculation or sidelines into the productive economy. That unfortunately could not be done by BB, but requires the politicians to eliminate long term capital gains tax (at least temporarily) to bring money from old investements into new ones.
Another thing I suggested here last fall was printing money, not for QE, but just to counteract the credit deflation. What could have been done was a large but short inflation shock. What is bad about inflation is when it is anticipated and never ending. But past inflation is not nearly as bad. You wake up one morning and the dollar is worth less (not worthless), but the Fed also promises that it was a one-time event so there is no anticipatory inflation spiral.
I can't have prevent last year's market crash and this year's economic fallout from the crash unless I go back to 1987 and stop the boom/bust cycles (some would argue going back to the 1970's or 1930's or earlier).