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When Bernanke became chairman of the Fed on Feb. 1, 2006, this was the organization he led: It had $861 billion worth of securities on its balance sheet, almost all of it in simple Treasury bonds. The Fed’s most recent policy statement was a simple 110 words long. The chairman never took on-the-record questions from the media. The Fed regulated banks, but that job was considered a backwater within the organization. The idea of the Fed bailing out an investment bank or an insurance company was downright preposterous. The unemployment rate was 4.7 percent.

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