When I was listening to Bernanke, I said he "Was Schooled"

By Senator Toomey. The disagreement was on the Taylor rule, which is an essential policy formula to setting interest rates. Bernanke argued that Taylor supported a different variation of the rule 6 years after the original formula.

Interestingly in a blog post, Taylor, the creator of the rule agrees with Senator Toomey and thus Bernanke who in part has justified quantitative Easing on the Taylor rule, doesn't even understand what the man who created it believes. The end result? QE is based of Bernanke's misunderstanding of the Taylor rule, that's a pretty big "ooops".

Here's more of the story and I'm sure right about now, Bernanke is hoping to never hear the name "Taylor" again in his lifetime.

As for my own call on getting it right, it was simply this-"Bernanke was schooled by a Senator who understands economics better then the Fed chairman".  Now I'm even a little embarrassed.