Bernanke throws in the towel.NOW WHAT?
- Thread starter noob_trad3r
- Start date
BUBBLE ben bernanke is clueless on how to fix this economy, as I said a thousand times over this credit crisis cannot be fixed, the only thing that can fix it is time and when I say time I'm not talking a few days or 4 years I am talking decades. QE1 and QE2 did NOT work and QE3 and QE4 will not work either, all it does is create rapid inflation and a wider gap between the rich and the poor. The market is now telling BUBBLE ben bernanke that it wants more stimulus that it wants more free hand outs, the market will continue to sell off until BUBBLE ben bernanke comes out and starts to create another system or way to help prop up equity markets.
Section 8 housing for one and all.
time is exactly what Bubble Ben is buying. He's been buying time so that the cronies can offload all their shares of stock and convert it into physical assets...they know the Titanic is sinking, they are just allowing the rest of us to sink with the ship while they prepare the life boats.
That is effectively what a 30-year mortgage is.
We are all welfare recipients.
The mortgage market in the US was always socialist. I posted this before, but here we go:
1 - The mortgage interest deduction.
2 - The property tax deduction, which became a special subsidy when sales & gas taxes were not allowed to be deductible against Federal tax.
3 - Fannie & Freddie keep the secondary mortgage market afloat, which keeps rates lower than they would otherwise be.
4 - The Federal Home Loan Banks, a sort of Fed for mortgages, with about an equal number of branches around the country (I think they have 12 to the Fed's 13, something like that).
5 - The Interstate Highway system, which made the farther-flung suburbs possible. (New York state built its own interstate-grade highway before these were built starting in the 50s. It eventually was "reimbursed" by the Feds for its expense in building it and this one then became Highway 87.)
6 - FHA loans. The FHA has its own limits on mortgages, which for where I live (NYC burbs) is higher than the Fannie/Freddie limits.
The average corporate employee wanders out of his tax-subsidized, mortgaged to the hilt house, said mortgage's value on the secondary market supported by the FHA/Fannie/Freddie/FHLB and probably all kinds of other agencies I don't know about, into his car and then onto the Interstate to go to work for a company with massively tax-subsidized health care (this was before Obamacare, before someone has a coronary about that one) and pension plans, and then goes home on the Interstate back to his house to have a barbecue where he then - if you believe all the hoopla about the Tea Party - flips burgers under a "Don't Tread On Me" yellow flag and rails about the Feds and their bailouts and, just now, the debt ceiling, to his friends and neighbors.
Life in America.
1 - The mortgage interest deduction.
2 - The property tax deduction, which became a special subsidy when sales & gas taxes were not allowed to be deductible against Federal tax.
3 - Fannie & Freddie keep the secondary mortgage market afloat, which keeps rates lower than they would otherwise be.
4 - The Federal Home Loan Banks, a sort of Fed for mortgages, with about an equal number of branches around the country (I think they have 12 to the Fed's 13, something like that).
5 - The Interstate Highway system, which made the farther-flung suburbs possible. (New York state built its own interstate-grade highway before these were built starting in the 50s. It eventually was "reimbursed" by the Feds for its expense in building it and this one then became Highway 87.)
6 - FHA loans. The FHA has its own limits on mortgages, which for where I live (NYC burbs) is higher than the Fannie/Freddie limits.
The average corporate employee wanders out of his tax-subsidized, mortgaged to the hilt house, said mortgage's value on the secondary market supported by the FHA/Fannie/Freddie/FHLB and probably all kinds of other agencies I don't know about, into his car and then onto the Interstate to go to work for a company with massively tax-subsidized health care (this was before Obamacare, before someone has a coronary about that one) and pension plans, and then goes home on the Interstate back to his house to have a barbecue where he then - if you believe all the hoopla about the Tea Party - flips burgers under a "Don't Tread On Me" yellow flag and rails about the Feds and their bailouts and, just now, the debt ceiling, to his friends and neighbors.
Life in America.