Ben Bernanke: Someone pay him to go & study the Great Depression or do anything else

http://online.wsj.com/article/SB121001844532568435.html?mod=hpp_us_whats_news

The program seems like it is working just fine according to this chart:

http://countrywide-foreclosures.blogspot.com/

They really don't get it, prices are at unsustainable levels and short of putting the whole society in vastly more debt to keep home prices inflated nothing other than price stabilization at lowers levels will bring confidence and buyers back to the housing markets and more importantly the housing backed debt.

This guy knows what he is talking about and I agree that home prices are just not at levels were supply and demand are in equilibriium in this new tighter and more realistic credit environment.

http://www.youtube.com/watch?v=1PDeMZYRjLQ
http://mrmortgage.ml-implode.com/

$70K income can't and shouldn't be buying a $700K house as they have been as we have clearly seen it is unsustainable. Maybe Paulson and Bernanke need to look up the word unsustainable in the dictionary. Whats more it isn't in the greater economic interest to have a lot of people house poor and unable to spend any money for obvious reasons.
 
Quote from mokwit:

He is overly focussed on this one reference point and the fact that they did not cut rates. There are other more recent examples that will tell him things he clearly does not know, e.g. Japan where they DID cut interest rates but did not allow clearing and bank failure to take place (sound familiar?). Result. A great Depression that lasted 10+ years.

A condition of IMF (i.e US) aid in the South East Asian crisis of '97 was that failed banks and financials that the central bank was supporting in the same way the Fed is supporting banks now were CLOSED DOWN. Just by coincidence GS and LEH then came in the wake of the IMF and bought the assets for pennies on the dollar and made huge profits. Why is the medecine the US dished out elsewhere not applicable to US banks when they are insolvent?

This academic buffoon/bank poodle, whichever he is has to go as does the Fed. Rogers is right, Bernanke is out of control. It is insane that the whole world is dramatically impacted and held to ransom by decisions made by a handful of banks/a committee of academic buffoons. You only have to look at the boom and bust history of the US post 1913 to see that the Fed does not achieve what it was supposedly set up to achieve.
More...

Very well stated.
 
Quote from Mvic:

http://online.wsj.com/article/SB121001844532568435.html?mod=hpp_us_whats_news

The program seems like it is working just fine according to this chart:

http://countrywide-foreclosures.blogspot.com/

They really don't get it, prices are at unsustainable levels and short of putting the whole society in vastly more debt to keep home prices inflated nothing other than price stabilization at lowers levels will bring confidence and buyers back to the housing markets and more importantly the housing backed debt.

This guy knows what he is talking about and I agree that home prices are just not at levels were supply and demand are in equilibriium in this new tighter and more realistic credit environment.

http://www.youtube.com/watch?v=1PDeMZYRjLQ
http://mrmortgage.ml-implode.com/

$70K income can't and shouldn't be buying a $700K house as they have been as we have clearly seen it is unsustainable. Maybe Paulson and Bernanke need to look up the word unsustainable in the dictionary. Whats more it isn't in the greater economic interest to have a lot of people house poor and unable to spend any money for obvious reasons.
More...

Very well stated, also.
 
I'm surprised that so many traders have no understanding of basic economics. It is actually quite sad. Bernanke may have have literally saved this country from another Depression. Maybe the OP should study the Great Depression like Bernanke did and then maybe they would have something intelligible to say on the topic. Until then take comfort in the fact that smarter men then you are dealing with this problem.
 
This is the exact mindset that is so dangerous. The fed is the wizard of oz.

Would the USSR still be around if it just tweaked its interest rates right?
 
And for $1500 per year you too can be wrong for almost 30 years straight.

Quote from JamesVU2000:

Jim Grant has stated many times that he has never seen any country or society sustain unlimited prosperity.
More...
 
He a thorough egg-head who writes well and over charges and could not make a dime in the financial markets if it weren't for Vanguard Index Funds.

Quote from JamesVU2000:

He does good work
More...
 
Quote from bkveen3:

I'm surprised that so many traders have no understanding of basic economics. It is actually quite sad. Bernanke may have have literally saved this country from another Depression. Maybe the OP should study the Great Depression like Bernanke did and then maybe they would have something intelligible to say on the topic. Until then take comfort in the fact that smarter men then you are dealing with this problem.
More...

Yeah, I should really brush up on central planning, because that's very nearly what Bernanke engaged in.

I have a great respect for Buffet, because he keeps things simple, but his approval of Bernanke's actions in cherry picking BSC to save (out of an allegation he was trying to save the world financial markets) is pure crap.

Will you teach me basic economics? Milton Friedman really disappoints.
 
You must log in or register to reply here.
Back
Top