Bernanke - Hero or Heal?

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Free Market and invisible hand should be the market not ben bernanke. This is a dangerous precedent.
 
I do not think Bernake or the Fed regardless of who is running it is trying to 'BE" the market. That may be a natural consequence of their primary goal which is make sure there is liquidity in our economy and also in the global economy. Remember guys, there was over 55 trillion in CDO/derivatives in the "shadow banking system" that was going to send us into a depression. May still as Bernake came out today to say risks remain in that shadow banking system. I say 55 trillion but that was just a guess as no one knew or knows the real number. Our Congress and Presidents are just as responsible as anyone for this. Look up the Commodity Act of 2000. It is where they voted that the shadow banking system would not have to come under regulation. And then look up Glass Steagall Act and make your own determination. Not trying to get political but the paths for the financial crisis to happen occurred long before it happened. The mechanisms to "protect" were voted away.....
I just think there is so much we do not know, so many reasons things were done that we have not one real clue about so interpretation or coming to conclusions with truthful clarity remains difficult, at least for me.
 
Ah...The Fed Chair... the most powerful person in the world :)
 
easysurfer said:
Ah...The Fed Chair... the most powerful person in the world :)
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Not so sure, myself, and am thinking this person is even more powerful than Mr. Bernanke
 

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For all those foolish enough to think that the federal reserve != wall street, please google Jekyll Island 1910 and report back your findings.

Bernanke/Fedco exist to protect the interests of the banks and nothing else. They are not there to protect the interests of the people. If they were, they wouldn't purposely cause inflation (which hurts the most vulnerable in society-fixed income and the poor) and allocate capital by fixing interests rates.

Another thing: The federal reserve can not create economic wealth or help prosperity. Can they stop intervening and do less damage then they are currently causing? Certainly! But they, by themselves with their magic funny money, can not make things better in the long run. If we want to fix the economy, we need to let the free market reign supreme. And that means letting banks fail/governments fail/rates to rise/stocks to fall/etc. Freedom and liberty is the answer to economic problems, not control and manipulation, which is what the federal reserve does by its own textbook definition.
 
I'm sure he is a well mannered and pleasant cocktail guest. Fed decisions? An absolute disaster, exactly the opposite of what should be done (created new market bubble) (housing, investors are buying to rent for return). Policies will prolong the downturn, which will soon re-introduce itself. Jest: Stocks prices low now? Ok, buy them and watch how much lower they can go...
 
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I have over 1 million and not feeling comfortable because of the printing
 
You'll be in great shape for the meantime if you stay out of mutual funds (stock, bonds, muni's, sectors). The $ is and will remain the Int'l Reserve Currency. Why? Almost all international debt is denominated in $ (you have to sell Euro's to buy $ to pay off your creditor). Deflation is not falling prices is the rising value of the $. When the markets implode again (soon) and house prices tanks, $ supply is reduced (someone does not 'get' the $, it's just gone.) If your house is worth 200k now and next year $100k, no one got the $100k - it's gone, $ supply reduced. As the amount of $'s decline they go up in purchasing power because of the demand for the $ to pay off debt and the $ supply is lower, supply /demand; $ will go up for sure. In 2007 (before great recession said the Euro would come undone, people laughed, I smiled, take a look today) Is there ANY replacement for the $ as a global reserve currency - no. After the markets & commodities crash, (prices lower because $ worth more, less $ supply and more demand) and then buy stock indices and commodities at great prices. The goal: Buy low ($ now, but not much longer, take a look at it's pattern - bullish long term) Sell high ($ for LOW priced stocks, commodities etc., which will be cheap because the dollar will be worth more).
 
sheehs1 said:
I do not think Bernake or the Fed regardless of who is running it is trying to 'BE" the market. That may be a natural consequence of their primary goal which is make sure there is liquidity in our economy and also in the global economy. Remember guys, there was over 55 trillion in CDO/derivatives in the "shadow banking system" that was going to send us into a depression. May still as Bernake came out today to say risks remain in that shadow banking system. I say 55 trillion but that was just a guess as no one knew or knows the real number. Our Congress and Presidents are just as responsible as anyone for this. Look up the Commodity Act of 2000. It is where they voted that the shadow banking system would not have to come under regulation. And then look up Glass Steagall Act and make your own determination. Not trying to get political but the paths for the financial crisis to happen occurred long before it happened. The mechanisms to "protect" were voted away.....
I just think there is so much we do not know, so many reasons things were done that we have not one real clue about so interpretation or coming to conclusions with truthful clarity remains difficult, at least for me.
Click to expand...
+1
 
He did what he had to do given what he inherited. Yes, he may have skewed too much toward saving banks*, but I think he kept us out of much more trouble.

I don't think he had enough clout on the Fed before he was chairmen to head off the disaster. No telling if he would have done better than Greenspan had he taken over sooner.


* I'd say that Paulson and Geithner were worse.
 
AndrewJackson said:
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.
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Well, you certainly picked the right screen name.
 
sheehs1 said:
I do not think Bernake or the Fed regardless of who is running it is trying to 'BE" the market. That may be a natural consequence of their primary goal which is make sure there is liquidity in our economy and also in the global economy. Remember guys, there was over 55 trillion in CDO/derivatives in the "shadow banking system" that was going to send us into a depression. May still as Bernake came out today to say risks remain in that shadow banking system. I say 55 trillion but that was just a guess as no one knew or knows the real number. Our Congress and Presidents are just as responsible as anyone for this. Look up the Commodity Act of 2000. It is where they voted that the shadow banking system would not have to come under regulation. And then look up Glass Steagall Act and make your own determination. Not trying to get political but the paths for the financial crisis to happen occurred long before it happened. The mechanisms to "protect" were voted away.....
I just think there is so much we do not know, so many reasons things were done that we have not one real clue about so interpretation or coming to conclusions with truthful clarity remains difficult, at least for me.
Click to expand...

+1 Yeah... pretty much the case.
Shadow banking, off-balance sheet vehicles, out of sync trading and a non-operative SEC broke the laws that were in place, and resulted in a patchwork map to disaster.
IMHO, adherence to the law might not have prevented the crisis, but would have shortened the recovery time.
I believe that the Wikipedia article (work in progress) covering the financial crisis is not only an interesting read, but provides a fair and balanced analysis of the mechanics of the power of private interests and the failure of government regulation.
https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932008
 
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MichaelB said:
Not so sure, myself, and am thinking this person is even more powerful than Mr. Bernanke
Click to expand...

I've never seen the picture before. But I assume, Mrs Bernanke? :LOL:
 
anethum said:
I would consider Greenspan one of your so-called arsonists, not Bernanke.
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+3. Wonder how he's enjoying his retirement, with all that time to reflect on his "accomplishments?"
 
Midpack said:
+3. Wonder how he's enjoying his retirement, with all that time to reflect on his "accomplishments?"
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He is not retired and runs an economic consultancy business.
 
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Independent said:
Well, you certainly picked the right screen name.
Click to expand...

Yep. Two most beloved Facts about Andrew Jackson:

1. Paid off the national debt.

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
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2. Killed the National Bank!

The Best Quote imo
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.
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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?
 
MichaelB said:
He is not retired and runs an economic consultancy business.
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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 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.
 
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