Bernanke is a complete goof

Quote from day7793:

Look you are the moron who doesn't understands how things work.
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Uh, I'd be careful of calling Pabst a moron. He's pretty much one of the smarter individuals here.
 
Quote from Ivanovich:

He certainly sounds like the guy.
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LOL..

You know when something is better left unsaid because mentioning it ruins the fun of the inside joke?

yeah, this is one of them.
 
really, it's his job to react.

it's the market's job to act.

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my only observation about the new Fed chief is that he seems -- and this is just a sense -- he seems to be a bit scared.

at least, the sequence of pronouncements suggests that to me, as have most of the headlines this week -- but that's entirely subjective.
 
Quote from AAAintheBeltway:

I think Bernanke is developing into something of a disaster as Fed Chairman. He is close to having the markets totally lose confidence in him. The last time that happened was with Jimmy Carter's Fed Chairman, and the results were not pretty.

I said before the last meeting they should cut 50 bps, and I was attacked by many of you. Now, after saying risks were contained, Bernanke will be forced to cut at least 50. Fed futures are now pricing in incredible cuts by summer. He looks like a friggin' idiot. The banking system is coming down around his ears, FNM and FRE will require huge bailouts, there is no way the bond insurers can make good on all their exposure, and people are worrying about the cost of corn or oil? If you want ag prices down, do something about the idiotic ethanol policy. If you want oil down, talk to the Saudis. Oh wait, Bush already did that and they told him to f*ck off.

Bernanke's incompetency is now leading to congress wanting to pass "economic stimulus", which will be some collection of the most mis-guided giveaways possible. Incredibly, Bernanke seems to be encouraging it. He seems to lack the respect of his fellow Fed members, as they seem to feel free to go out and say whatever crosses their mind. This did not happen with Greenspan.

I will repeat my advice. We have a serious financial problem. One way to make things better in a hurry is to lower rates aggressively. There are costs to that policy but they pale in comparision to what we will piss away if somethng isn't done.
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Excellent commentary.

My only problem is that our national debt is financed in [short-term] treasury bills. What are we going to do to stop this inflation? The only way to slow inflation is to tighten monetary policy--raise rates. What happens when we are paying $1+trillion in interest on foreign debt?

How is this game of Writing Checks We'll Never Cash going to solve anything?

Lowering rates won't solve anything, it will only push the problem to a later date, and the more we push it off the worse it's going to be. Is the fed going to have $2 and $3 trln TAFs??!?

This isn't liquidity issues, it's inflated paper assets being repriced, it's bankrupcy.

You're absolutely right we are in serious, serious trouble.
 
Quote from Pa(b)st Prime:

...you just cannot allow a situation where you PUNISH savers by keeping rates artificially low while consumer prices and commodities ratchet higher...
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I do believe you're right. Savers had been pummelled under Greenspan perhaps unlike any other time in US history, and Bernanke seems to be a quick study. The cautious are paying for the mistakes of the lazy and stupid. If Aesop were alive today, I wonder if he would have to rework his fable about the ant and the grasshopper.
 
Quote from Daal:

the fed's is choosing a semi-repeat of the 70's to avoid a 30's repeat. and they are right to do that
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It's different this time. We can't afford to see rates in the mid teens, our debt is too high.
 
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