Dobbs: I don't think there's any question that the Fed has missed, grievously, a number of its policy choices, not understanding the bubbles that it was creating. And this is, if you will, a Greenspan-Bernanke responsibility. Because their failures absolutely conflate. And Bernanke unfortunately carries on some of those failures that began with Greenspan. But the lack of understanding, it seems to me, that they have a regulatory role, which they advocated. Secondly they seem to pay, for whatever reason, no attention whatsoever to the impact, the consequences of low interest rates and expansive monetary policy. Peculiar because everyone is fond of saying elections have consequences. So does Fed policy. And we are going through, I think, in large measure, some of the consequences that find their origin principally at the Fed.
Forbes: It's amazing. When the Fed messes up the free markets get the rap.
Dobbs: Exactly, exactly. And that may continue for some time. Ben Bernanke, the open question as to, you know, his leadership to the degree of which he should be replaced. We find ourselves in an odd place. Because here is a man who in my opinion should definitely be replaced. There are lots of capable, bright folks who understand the role of the Federal Reserve--the proper role of the Federal Reserve--[and] understand the policies that should be followed.
Video of the interview here. He hates Obama and the bailouts, loves Volcker and Glass-Steagall.