Bernanke - Hero or Heal?

[audreyh1]

Quote:

Originally Posted by anethum I would consider Greenspan one of your so-called arsonists, not Bernanke.

+1 geez!

[easysurfer]

Quote:

Originally Posted by MichaelB Not so sure, myself, and am thinking this person is even more powerful than Mr. Bernanke

I've never seen the picture before. But I assume, Mrs Bernanke?

[MichaelB]

Quote:

Originally Posted by easysurfer I've never seen the picture before. But I assume, Mrs Bernanke?

Yup.

[MichaelB]

Cullen Roche writes the blog Pragmatic Capitalism. He describes the modern monetary system as "Monetary Realism" and provides an excellent overview. Folks fading this thread might want to take a look. Blog here PRAGMATIC CAPITALISM, link for monetary realism here Understanding the Modern Monetary System by Cullen Roche :: SSRN

[Midpack]

Quote:

Originally Posted by anethum I would consider Greenspan one of your so-called arsonists, not Bernanke.

+3. Wonder how he's enjoying his retirement, with all that time to reflect on his "accomplishments?"

[MichaelB]

Quote:

Originally Posted by Midpack +3. Wonder how he's enjoying his retirement, with all that time to reflect on his "accomplishments?"

He is not retired and runs an economic consultancy business.

[AndrewJackson]

Quote:

Originally Posted by Independent Well, you certainly picked the right screen name.

Yep. Two most beloved Facts about Andrew Jackson:

1. Paid off the national debt.

Quote:

I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country. –Andrew Jackson

2. Killed the National Bank!

The Best Quote imo

Quote:

Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.

Given quote number 2 and his revoking the national bank's charter, what kind of sick joke were the men at the mint thinking when they stamped Jackson's figure on the twenty dollar bill?

[anethum]

Quote:

Originally Posted by MichaelB He is not retired and runs an economic consultancy business.

I wonder if some of the companies that hired him for his economic expertise were Circuit City, Sharper Image, Linens 'n Things, or Hostess Brands?

[slaternuthink]

I appreciate all the comments and links. Thank you

[rmark]

'I wonder if some of the companies that hired him for his economic expertise were Circuit City, Sharper Image, Linens 'n Things, or Hostess Brands? '

I think those companies had financial not economic problems. Hostess was floundering for years.

[sheehs1]

After he left the fed, Greenspan joined with John Paulson's hedge fund company. . You know the guy that made billions betting against the mortgage market prior to it's collapse? Yes, that guy!

[oldnews]

I'm sorry but this is a stupid question. Remember 2007-2009 and the panic/pain of a crashing market. There are real people barely hanging on. The only one's truly unhappy right now are those hedge fund managers who make a killing in a bear market...looking at you Greenlight and Einhorn...so I think Bernanke should get the Nobel. Will this be great in 5/10/20 years?...who knows. But for the 99.99% of us not betting heavily against the market, and with past ability to manipulate trading with short sells, I'm very happy.

[clifp]

It seems to me the grade is really incomplete.

Yes Bernake, along with Geitner, Sheila Bair, Hank Paulson and other deserve some kudos for the adroit handling of the events of 2008 and 2009. Pretty much all of the many accounts I've read and watched of the crisis point out that situation could have been worse, much worse if things were handled differently.

My issue with Bernake is the continued qualitative easing from 2010 on. I think in the long run the country would have been better off with a return to normalcy. The free market should have set interest rates after the major crisis had passed. Rather than the heavy hand of the Fed keeping rates low and punishing savers.

Instead the Feb balance sheet is filled with trillions of dollar in IMO overpriced Treasury bills, Fannie Mae mortgages of dubious credit worthiness and who knows what else.

If Ben and/or his successor manage to sell the unprecedented amount of assets the Fed has purchased over the last 5 years, without sparking a huge increase inflation and/or interest rates, then I'll perfectly willing to call the man a hero.

If on the other hand inflation and interest rates spike as I fear, then the benefits of inflated our debt will be largely canceled by hurting the feds balance sheet as the trillions of dollars on the balance sheet shrink in value.

But my real fear, is that China and other countries decide that soundest of the dollar can no longer be trusted. Perhaps the RMB supplements or even replace the greenback as the worlds reserve currency. If this ugly scenario occurs in the next decade then Uncle Ben, deserves to be vilified not praised.

[HighRoller]

Quote:

Originally Posted by clifp It seems to me the grade is really incomplete. My issue with Bernake is the continued qualitative easing from 2010 on. I think in the long run the country would have been better off with a return to normalcy. The free market should have set interest rates after the major crisis had passed. Rather than the heavy hand of the Fed keeping rates low and punishing savers.

Certainly agree with that.

[Gatordoc50]

Quote:

Originally Posted by AndrewJackson Anyone who believes that Fed Policy is correct in any shape or form doesn't understand the dynamics of a free market. Outcomes will always end up worse when you have ONE man FIXING the price of the most abundant and important commodity on the planet, money. If there were ever an honest chairman, here is what they would do: 1. Sell bonds to get balance sheet to pre crisis QE levels. 2. Forgive the remaining debt owed by the US that is held on its books. 3. Remove any operations to fix the price of money and let a completely free market take over.

Unfortunately, we don't have anything that resembles a free market. The government is entangled in everything and thus the Fed has to work in that framework. It's easy to say that we should just allow deflation, but what do you do about the millions of government workers with constitutionally protected pensions? So you either have to whack the pensions or inflate everyone else's assets. It's not about creating efficient markets. It's about creating markets that are under the complete control of central banks and thus governments. It's a game. Play well.

[FinanceDude]

Bernanke is an idiot. At least Greenspan made some of his own decisions, and din;t rubber stamp everything the Executive branch wanted all the time...........

[bjorn2bwild]

[QUOTE=oldnews;1318831]I'm sorry but this is a stupid question.


Given how far reaching Fed policy has become, it is certainly fair to ask the question. We all have a dog in this fight whether we like it or not.

[oldnews]

As everyone should know by now...if you bet against the dollar YOU LOSE...the dollar remains the go to currency until we find life on some other planet. If you are crazy enough to go into the FOREX market without being one of the insiders, then bless you.

[explanade]

People have been predicting inflation since the crisis.

Even when deflation was a bigger looming threat.

[oldnews]

Exactly! ^^^