Quote from johnstang:
Bernanke has a phd from MIT. He knows exactly what he is doing.
Quote from AAAintheBeltway:
The conclusion doesn't doesn't necessarily follow the premise. Paul Krugman is also a phd from MIT and he is demonstrably clueless. In fairness, he is afflicted with a terrible case of Bush Derangement Syndrome, and that may explain some of it.
Quote from aeliodon:
When Bernancke does his 'liquidity injections' - where does he get the money from? Does he create it out of thin air by pressing a few buttons? Of course nothing is free - that kind of stuff (liquidity injections) has created the massive inflation in the past few years that has hurt the poor and middle class more than anything else. So every time he injects, he is sticking it to the poor and middle class to bail out wall street banks hedge funds that can't trade for shit.
The ECB and Fed have already done the largest injections since 911? What more do people want them to do? Lower rates down to 2-3% and start the whole RE bubble all over again?
When I make a bad trade, no one bails me out.
Quote from jficquette:
Greenspan was the modern day "Emperor without Clothes". He set the stage for this and the only remedy is letting the chips fall where they may.
Greenspan was a fool to lower rates as low as he did and he knew a Bond bubble would come out of it. Either that or he believed his own bs that he use to spout off to Congress.
John
Quote from aeliodon:
Don't forget Bush and the republicans/democrats in congress. They could've ended the no doc., interest only loans from the loan sharks thru legislation - if they weren't all bought and paid for. Worst political/economic leadership in over 200 hundred years. I think their approval rating will drop sub 5% - after all is said and done. Ron Paul for president, anyone?
Quote from johnstang:
What I mean is - he is fully aware of the results that his actions will bring about, but he is doing them for the Feds own unique reasons. He has a number of people he can refer to, all with advanced degrees in Business/Economics, its not like he is the only person who decides thing. Just like Bush is not the only person who decides what happens in America - many people work behind the scenes.
Quote from jficquette:
There was no reason to for congress to get involved. Determining who can buy a house is not one of congresses duties.
This is entirely Greenspans fault. He set the stage for this by dropping rates so low that it was basically free money for the financial guys to loan.
You can't blame the mortgage industry. They were only doing what they are in business for. They could not have taken the risk of no doc, liar loans unless the Fed gave them free money.
Bernanke is going to let the house of cards fall which is what he should do.
John
Quote from AAAintheBeltway:
No way. I think congress should get involved and enact a mandate that people can get no doc interest only loans with teaser rates. Do we want to live in a country that denies poor people the right to speculate in real estate. I don't think so.
Quote from AAAintheBeltway:
No way. I think congress should get involved and enact a mandate that people can get no doc interest only loans with teaser rates. Do we want to live in a country that denies poor people the right to speculate in real estate. I don't think so.