Author Topic: The Bernanke Brief  (Read 185946 times)

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Offline boomerkel

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Similar to Chairman Cox's prior responses

Before SEC Chairman Cox ... "Senator Robert F. Bennett Questions Naked Short Selling"

Chairman Cox's responses are pathetic!

"I believe that banking institutions are more dangerous to our liberties than standing armies." ... Thomas Jefferson

Offline boomerkel

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They just spoke about how well the Securities and Exchange Commission (SEC) investigates.  The reality is, as originally designed, they inhibit investigations and they attack little people like Martha Stewart, using them as examples of how efficient they operate.  On the flip side John Mack chairman of Morgan Stanley gets away with murder.

Here is an email that I sent out to every email address that I could put my hands on:

Date: Wed, 18 Apr 2007 17:11:45 -0700 (PDT)
From: "Boomerkel" <[email protected]>   
Subject: PBS Special Featuring Gary Aguirre - What A Loon! A Kook! Oh, Wait, He Isn't...

Everyone who claims that those concerned over a systemic collapse due to Wall Street larceny, personified by a corrupt SEC and all-powerful hedge funds, are a bunch of loons, have a tough job now after the Bloomberg, and now the PBS special...
 
Everyone needs to watch the PBS special featuring Gary Aguirre. It's a great program, and underscores the reasoned, calm, rational demeanor of the man (Gary Aguirre) that the SEC is trying to paint as a crazy.
 
And it is chilling, in that when you listen to it, the truth cuts through like a laser light.
 
The system is broken, powerful hedge funds are untouchable, and those chartered with protecting the public are bought and paid for by the hedge funds.... Watch the program.

"Who's keeping an eye on those high-stakes hedge funds?"


"I believe that banking institutions are more dangerous to our liberties than standing armies." ... Thomas Jefferson

Offline Loungin

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Thanks for the update on this Boom!  Too busy at work to tune in and see what is happening.  If we get a clip of RP grilling these crooks, lets link it up for all to see.

Offline boomerkel

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One Final Comment:

Black Rock has been designated by the FED to manage the 29 Billion that is being loaned (which is our fiat money that the FED has control of) to J. P. Morgan to foot the acquisition of Bear Stearns by J.P. Morgan.  Does anyone on this forum know anything about BlackRock and the origin of their huge wealth?  BlackRock and others sucked HUD (Housing and Urban Development) dry.  Catherine Austin Fitts won a bid to design a software system that would automate and increase efficiency with respect to properties being taken in by those defaulting on homes (sound familiar).  Ms. Fitts increased recovery from approximately 30% to 90% with her technology by putting these properties out to bid.  The Boys Club didn't like that ... so they framed her. Read the DOC below ... This is a pretty incredible read and EYE OPENING!

Excerpts from Catherine Austin Fitts' "Summary of Events as of February 2001"
http://www.dunwalke.com/media/summary.html 

"The next day, Ervin also filed a Federal False Claims Act "whistleblower" or “Qui Tam” lawsuit under seal alleging that Hamilton and HUD had engaged in bid rigging and insider trading to favor certain investors, including Goldman Sachs and BlackRock/PNC.  (See summary of False Claims Act)  Because the Qui Tam case was under seal, Hamilton had no knowledge of the existence of the case, that Hamilton had been named, or the nature of the allegations.  As a debt collector for a large portion of HUD's portfolio of defaulted mortgages, Ervin had lost a substantial amount of its business as a result of the success of the HUD loan sales. (See copies of Qui Tam and Bivens suits) Ervin’s efforts to interest Wall Street in hiring it to help with bids, and to bid, had also been unsuccessful. (See Penn Capital memorandum)"

"In August of 2000, Ervin served the Qui Tam complaint upon Hamilton for the first time. Just before it served the complaint, Ervin voluntarily dismissed Goldman Sachs and BlackRock/PNC and other bidders as defendants, notwithstanding the fact that they were the bidders who, according to Ervin’s imaginative and baseless allegations, had made away with billions of dollars worth of mortgage notes for hundreds of millions less than fair market value.[6] (See Hamilton's motion to dismiss Qui Tam case)"

"[6] The initial July 1996 complaint named Hamilton, Goldman Sachs and BlackRock Capital as defendants.  In the subsequent amendment in 1999, Ocwen Capital (formerly known as Berkeley), a loan sales bidder, and Williams Adley, a minority contracting firm that provided due diligence services for most of the loan sales, were added as defendants.   When the government elects not to adopt a qui tam case, the “relator” [Ervin, in this case] must decide whether to go forward with the case without the government.  Although the government is no longer a party, it is permitted under the False Claims Act to reenter the case.  Its permission was required (and given) for Ervin to drop all of the loan sale bidders as defendants."

THIS IS THE COVER UP ... Over Eighty (80) Years of COUNTERFEITING, COUNTERFEITING, COUNTERFEITING, Ad Infinitum, Ad Nausea


"I believe that banking institutions are more dangerous to our liberties than standing armies." ... Thomas Jefferson

Offline mickswann

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Paul Lectures Bernanke
« Reply #44 on: April 03, 2008, 01:17:12 pm »
I just watched the video on pp.
Just what the hell is going on with that guy sitting behind Ron Paul?
Is he having some kind of seizure?
'The great and mighty only appear so because we are on our knees. Let us rise.'  -James Connolly

"I hate to be the bearer of sad news, there Mick, but most who pound those subjects, are not among ourselves, much as you, my slithering friend, are not one of ourselves."  - JT Coyote

Offline boomerkel

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UPDATE:

I just heard Allen Schwartz complaining on the Tele (BoobTube) that his poor little company was shorted (Huuuuum ... Could it have been Naked Shorting ???) and he is not haaaaaappy :-[ HHHHhhhhhaaaaaaaahahahahahahahhahahh ;D I love it ... The biggest shorter got shorted! ;D

       

More Bailouts Could Follow Bear Stearns

BY RUSSELL BERMAN - Staff Reporter of the Sun April 4, 2008
URL: http://www2.nysun.com/article/74155


WASHINGTON — Top financial regulators are defending their decision to rescue Bear Stearns from collapse last month, but under intense and skeptical grilling from lawmakers they could offer no assurances that the extraordinary move would be the only taxpayer-backed bailout of a major Wall Street bank.

In congressional testimony yesterday, the officials said they took the best option available to them when they offered up to $30 billion in government funds to back the sale of Bear Stearns to JPMorgan Chase, insisting that the potential failure of Bear Stearns could have brought down other major firms as well.

"We judged that a sudden, disorderly failure of Bear would have brought with it unpredictable but severe consequences for the functioning of the broader financial system and the broader economy," the president of the Federal Reserve Bank of New York, Timothy Geithner, told members of the Senate Banking Committee on Capitol Hill.

Yesterday's hearing amounted to a public post-mortem on the rescue of Bear Stearns, as federal officials and executives from the two banks recounted a round-the-clock flurry of conference calls and meetings that precipitated the takeover of Bear Stearns three weeks ago.

While the chairman of the Securities and Exchange Commission, Christopher Cox, said regulators had been monitoring Bear Stearns on a daily basis since 2007, its rapid deterioration in value March 13 — caused by customers scrambling to withdraw cash and lenders refusing to extend credit — caught officials by surprise.

The firm's chief executive, Alan Schwartz, blamed the collapse on the lightning-quick spread of "unfounded rumors and attendant speculation" that Bear Stearns was in the midst of a liquidity crisis. The rumors, he said, "became a self-fulfilling prophecy."

"There was, simply put, a run on the bank," Mr. Schwartz said.

Federal officials said they offered the $30 billion in public backing once JPMorgan concluded it could not buy the firm on its own without great risk to its shareholders. "This wasn't a negotiating posture. It was the plain truth," the chief executive of JPMorgan, Jamie Dimon, said. The bank agreed to assume the first $1 billion in losses if the deal does not earn a profit. "We went absolutely as far as we could go," he said.

Lawmakers from both sides of the aisle pressed the regulators — occasionally in exasperated tones — to explain how they could be caught off-guard by the Bear Stearns collapse and what they were doing to prevent defaults by other major financial institutions. "There were an awful lot of red flags, not just in the last six weeks, not just in the last six months," Senator Bunning, a Republican of Kentucky, said.

"Nobody was watching the store. So it was eventually going to happen. It just happened to be Bear Stearns," he added.

A Democrat of New Jersey, Senator Menendez, similarly scolded the panel. "I think what we have here is a clean-up brigade," he said, "not a protector of all the institution that we need protected for the well being of all Americans."

The chairman of the Federal Reserve, Ben Bernanke, acknowledged that the Fed's action constituted a "bailout," but he characterized it as a bailout of the economy and not Bear Stearns investors. "If you wanted to say we bailed out the market in general, I guess that's true," he said.

He expressed confidence, but could not guarantee, that taxpayers would get most of their $30 billion back. "We believe we will recover most or all of it. Probably all of it," Mr. Bernanke said.

Mr. Geithner stressed that the threat of future instability was not over, and he called for regulatory changes that established better safeguards to ensure greater liquidity for financial firms and a reduced risk of sudden failure.

Officials said they recognized that the Fed's move raised "moral hazard" concerns, but they sought to underscore that Bear Stearns investors were not in an enviable position and that the risk of inaction to the broader economy outweighed the worry that the rescue would encourage dangerous betting.

Still, the committee's Democratic chairman, Senator Dodd of Connecticut, urged the SEC to investigate claims of short-selling in advance of the Bear Stearns collapse, pointing out that investors who bought $600 worth of stock before the deal could have made out with $37,000 just days later.

"Your hopes will be, I think, met and exceeded," Mr. Cox replied, though he avoided discussing an ongoing inquiry. "The rumors," he added, "are too big to miss."

"I believe that banking institutions are more dangerous to our liberties than standing armies." ... Thomas Jefferson

Offline boomerkel

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April 10, 2008: 12:48 AM EST

NEW YORK (Dow Jones) -- Former Federal Reserve Chairman Paul Volcker on Wednesday challenged recent moves by the central bank, including its $29 billion bailout of Bear Stearns Cos. and interest rate cuts, saying both could create more problems than solutions.

Last month's rescue of Bear Stearns (BSC) and the subprime mortgage mess that led up to it illustrate sharp differences between investment and commercial banks, with the latter better capitalized and regulated, and therefore better able "to protect against these crises," said Volcker, speaking at the Harvard Club of New York City.

The Fed intervention also calls into question what role the central bank might be expected to play if and when other such scenarios arise, said Volcker, who chaired the Fed from 1979 to 1987.

"Taking this kind of action in an emergency does create a precedent in people's minds... the more you support the market, the more political concerns arise. The Federal Reserve is supposed to be above all that," said Volcker.

"Financial crises don't come along unless there are underlying problems," said Volker, who pointed to years of the U.S. consuming more than it produces, with U.S. debt financed by money from abroad and Americans buying cheap goods from overseas.

"The only trouble is you can't go on forever spending more than you're producing," he said.

Volcker, whose Fed is credited for halting the stagflation crisis of the 1970s, also maintained the central bank's interest rate cuts won't be an easy fix to current financial problems. "The history of markets is littered with the idea you can solve problems by raising inflation," he said.

Addressing the same audience, former Treasury Secretary Lawrence Summers said the U.S. economy is "currently in recession," but the next administration would likely inherit an economy on the cusp of recovery.

"In a technical sense the recession will have ended when the next president takes office," although the climate may not feel much improved, said Summers, a Harvard University professor who led the U.S. Treasury during the Clinton Administration.

David Walker, up until recent weeks the country's comptroller general, lashed out at the "imprudent and immoral practices of the Federal government," saying the current policy of low taxes and high government spending means "tomorrow's taxpayers will pay the bill, (including) those too young to vote and some of them not born yet."

For a financial system to work, it needs to have incentives "for people to behave the right way," adequate transparency, and individual and institutional accountability when things go wrong, said Walker, who for a decade headed the Government Accountability Office.

UPDATE: Former Fed Chief Volcker Questions Wisdom Of Bear Bailout, Cuts

  (END) Dow Jones Newswires
  04-10-08 0048ET
  Copyright (c) 2008 Dow Jones & Company, Inc.


"I believe that banking institutions are more dangerous to our liberties than standing armies." ... Thomas Jefferson

Offline boomerkel

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"I believe that banking institutions are more dangerous to our liberties than standing armies." ... Thomas Jefferson

Offline bigron

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  • RON PAUL FOR PRESIDENT 2012
Message To Fed Chief Bernanke: "Enough With The Cuts, Already"
« Reply #48 on: April 23, 2008, 06:44:55 am »
Message To Fed Chief Bernanke:
 "Enough With The Cuts, Already"
 
By Mike Whitney
http://www.informationclearinghouse.info/article19787.htm

22/04/08 "ICH" -- -- Stop Last week's stock market blowout added more than 4 percent to the Dow Jones Industrials, but it had no affect on Libor rates. Libor rose steadily from Tuesday through Friday signaling more troubles in the banking system. Libor, which means London Interbank-Offered Rate, is the rate that banks charge each other for loans. It has a dramatic effect on nearly area of investment. When the rate soars, as it did last week, it means that the banks are either too weak financially to lend to each other or too worried about the ability of the other bank to repay them. Either way, it puts a crimp in lending. Banks serve as the transmission point for credit to the broader economy via business and consumer loans. When they're bogged down by their own bad investments or when risks increase; rates go up and the whole process slows to a crawl. When banks are unable to extend credit freely, business activity decreases and GDP shrinks.
 
The sudden surge in stocks is not a sign that things are back to normal; far from it. If anything, things are worse than ever. Credit remains unusually tight despite Bernanke's cuts to the Fed Funds rate or the creation of various “auction facilities” that remove mortgage-backed securities (MBS) from banks balance sheets. Businesses and consumers are still having a hard time getting funding, which means that the velocity of money in the financial system is decelerating rapidly increasing the likelihood of a system-wide freeze-up. Libor is just the flashing red light.
 
A rise in Libor adds billions in additional interest payments for homeowners, businesses and other borrowers. According to the Wall Street Journal:
 
“Libor is one of the world's most important financial indicators. It serves as a benchmark for $900 billion in subprime mortgage loans that adjust -- typically every six months -- according to its movements. Companies globally have nearly $9 trillion in debt with interest payments pegged to Libor, according to data provider Dealogic.”

 Commercial real estate deals are mostly pegged to Libor as are adjustable rate mortgages (ARMs). In fact, most of the mortgages that were written up during the boom-years were tied to Libor. That's why Peter Fitzgerald, chief financial officer at Radco Cos., said, "If Libor were at 4% instead of under 3%, there would be a disaster that would take years to unwind.” (WSJ)
 
Rising Libor puts the Fed and the Bank of England in a tough spot. They're trying to keep rates artificially low so the banks can increase their lending and recoup their losses, but the market is not cooperating. The market is driving Libor upward, which means the Fed is losing control. The real cost of money is going up.
 
The Bank of England was forced to intervene on Monday. Mervyn King, the UK's central bank governor, launched a “Special Liquidity Scheme” to “improve the liquidity of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks.” The plan will provide $100 billion for "illiquid assets of sufficiently high quality” (Mortgage-backed securities) to “unfreeze” bank lending. The plan is similar to the Fed's auction facilities which have provided over $200 billion in exchange for dodgy MBS, collateralized debt obligations (CDOs) and commercial paper (ABCP) According to Bloomberg:
 
“The Central Banks move allows financial institutions to add government bonds to their inventory of liquid assets and make it easier for them to raise cash and lend, especially to consumers seeking home loans. In return the government will hold the riskier mortgage-backed securities.” The BOE said the swaps would be for a period of one year and could be renewed for up to three years, although the banks would be on the hook for losses on their loans. Its a sweet deal for the investment banks and a total loser for the British taxpayer who could get stuck with hundreds of billions of worthless MBS.
 
The $100 billion liquidity-injection is the biggest bailout in the BOE's history, and it was granted without public input or Parliamentary authorization, just like the Bear Sterns transaction. The bankers call the shots while the public picks up the tab. The BOE's action puts to rest the idea that “the worst is behind us”. It isn't; in fact, recent estimates suggest that the losses to the banking system could exceed $1 trillion. There's still a lot of carnage ahead.
 
The $100 billion will help to stabilize the money markets and put the banks on sounder footing, but it does nothing to help the housing market. The British real estate market is on life support because most of the mortgage financing was coming from investors who bought MBS. Mortgage securities are currently down 92 percent from the same period last year, which leaves potential buyers without a funding source. The BOE is considering creating a British-style Fannie Mae to kick-start the flagging housing industry by providing government-backed loans. The private sector will not be a big player in the housing market for the foreseeable future.
 
The same is true in the US. If the Fed can't bring Libor down with interest rate cuts, then it will have to develop a back-up plan. The next step would be “quantitative easing”; a monetary policy that was implemented by the Bank of Japan in 2001 “to revive that country's economy that was stagnant for a decade. Quantitative easing entails flooding the banking system with excess reserves, resulting in pushing the benchmark overnight bank lending to zero.” (Reuters) There are indications that Bernanke is preparing for this radical option already, but there's little chance that it will succeed. Whether the banks are able to lend or not is irrelevant. Public attitudes towards indebtedness have changed dramatically in the past few months. Overextended consumers are looking for ways to pay off their debts and live within their means. This will make it more difficult for Bernanke to reflate the equity bubble through credit expansion. When people are frightened or pessimistic about the future, they naturally curtail their spending. A recent poll conducted by the Washington Post/ABC illustrates how the publics attitude towards the economy has darkened in a matter of months. According to the survey:
 
“Nine out of ten Americans now give the economy a negative rating, with a majority saying it is in 'poor' shape, the most to say so in more than 15 years. And the sense that things are bad has spread swiftly. The percentage who hold a negative view of the economy is up 33 points over the last year, and the percentage who rate the economy 'poor' has increased 13 points in the last two months. That is the quickest 60-day decline since the Post and ABC started asking the question in 1985” (Washington Post)
 
The average American is showing a better grasp of the deteriorating economic conditions than the stock market. Housing sales continue to tumble, manufacturing is off, unemployment is steadily increasing, retail sales are flat, and inflation is soaring. Consumers are feeling the pinch of rising food and energy costs, loss of home equity and a general downturn in the credit markets. Money is tight and jobs are scarce.
 
ARE YOU BETTER OFF THAN YOU WERE 8 YEARS AGO?
 
When George W. Bush took office in 2000, oil was $28 per barrel, the euro was $.87 on the dollar, gold was $274 per ounce, and the national debt was $5.9 trillion. Today, oil is a record $114 per barrel, the euro is nudging $1.60 on the dollar, gold is $945 per ounce, and the National Debt is $9 trillion. The country is presently engaged in a $2 trillion war in Iraq with no end in sight. The federal government has expanded over 30% under Bush. Wages for working people have stagnated, unemployment has risen, 47 million Americans are without health care, and the economy is slipping into recession. By every objective standard, the country is worse off today than when Bush first took office.
 
The Federal Reserve has played a major role in America's economic decline. Greenspan's “weak dollar” policy pushed trillions of dollars of credit into the hands of people who had no realistic prospect of paying it back. Now the banks are buried beneath a mountain of bad investments and foreclosures are at record highs. (In California 65,000 homes are now in some stage of foreclosure while the total number of homes sold in February—new and used---was a mere 20,513) Michael S. Rozeff explains the current downturn in his article “The Subprime Crisis and Government Failure”:
 
“How are we to explain and understand the details of the subprime crisis? Is it a sudden outcropping of market madness? Is this an instance of a free market gone haywire? Is it a case of mass lender stupidity? Is it a case of greed and corruption? Is it a case of inefficient regulation by the states?
 
The subprime crisis is none of these. Its origin lies in a housing price bubble brought about by excessive central bank money creation and the subsequent puncturing of this bubble...
 
Fiat money inflations often bring on real estate booms followed by busts. These inflations are the common element in real estate cycles that span many countries and many centuries, and they put the lie to the hypothesis that bad lending practices are the culprit. Fraudulent money creation is the culprit, not faulty evaluation of the credit risks of borrowers.” (Michael S. Rozeff , “The Subprime Crisis and Government Failure”, lewrockwell.com)
 
The knock-on effects of the housing bust are just now rippling through the broader economy. Consumer spending is sluggish, growth is weak, and the stock market is more volatile than anytime since the 1930s. The Fed has usurped congressional powers to deal with insolvency problems at the banks. Public money is now being provided for the purchase of dubious assets held by unregulated investment banks owned by private speculators. The Fed is simply making up the rules as it goes along. Bernanke's actions have not yet been challenged by any congressman or senator.
 
The Fed's monetary policies have triggered a run-up in commodities prices which is driving up the cost of everything from corn to copper. Food riots have broken out in capitals around the world and leaders are worried about growing political instability. The media is blaming drought, high energy prices, and biofuels for the sudden rise in prices, but these are only secondary factors. Currency devaluation has played a bigger role than shortages or blight. The world is awash in dollars which are steadily losing value. Pension funds and foreign central banks are diverting dollars into commodities rather than keeping them in corporate bonds or the sagging stock market. Here's an excerpt from the Wall Street Journal that sums it up:
 
“Inflation is rising throughout the world due to dollar weakness, and the prices of such commodities as oil and corn have soared. ..As former Fed Chairman Paul Volcker noted last week, we are already in a “dollar crisis”. Even the IMF---typically the temple of devaluationists—is alarmed by the dollar's fall. Dollar weakness has already contributed to soaring commodity prices that have walloped US consumers just when their spending is most needed to offset the housing slump. ...The commodity boom is result in large part of the Fed's weak dollar policy, and it may have tipped the US into recession that could have been avoided.” (Wall Street Journal)
 
Economics editor for the UK Telegraph, Ambrose Evans-Pritchard, draws the same conclusion in his recent article, "Oil, Surges as Investors hunt for Anti-dollar":
 
“Société Générale said the near $30 spike in prices since early February is largely due to money pouring into commodity index funds, now worth some $200bn. Crude has taken on a "safe-haven" role for investors fleeing the dollar, or those betting that central banks will let rip with excess liquidity.
 
"This is now entirely investor driven," said Dr Frederic Lasserre, Société Générale's head of commodities research. He added that most of the money is coming from pension funds, insurers and other long-term investors. They view the US recession as a mere hiccup in a powerful upward cycle, convinced that Chinese and Mid-East demand will hold up long enough for America to recover. "They are all convinced by the fundamental tightness of the market," he said.” (UK Telegraph)

Commodities prices are now being driven by an ever-weakening dollar. As Pritchard notes, oil futures have become a sort of “anti-dollar”; a more reliable store of value than the anemic greenback.

The Fed's loose money policies have put the dollar at risk of losing its role as the world's reserve currency. If the dollar falls from its perch, the empire will soon follow. The macroeconomic impact of Greenspan's low interest rates will be seismic. Foreign banks and investors currently hold $6 trillion in dollar-based assets and currency. When the dollar falls; speculation will increase and prices will rise. Currently, the US is exporting its inflation and fueling political unrest in the process. If Bernanke continues to slash interest rates, the problems will only get worse. The Fed could raise rates by 50 basis points tomorrow and the commodities bubble would explode overnight, but that doesn't look likely.
 
The idea that soaring commodity prices are the result of speculation is controversial. (I could be wrong!) Economist Paul Krugman does not think that “low interest rates and irrational exuberance” are responsible for the high prices. Rather, he thinks they are the result of “rapidly growing demand and constrained supply”. This is certainly possible. Perhaps, there is no bubble at all.
 
Currency Intervention to Save the Dollar
 
The G-7 finance ministers met in Washington last week and announced their “resolve” to minimize the volatility in the currency markets. Many people took this to mean that foreign central banks would take a more active role in shoring up the dollar. So far, there's been no indication of support. The dollar has stayed within the $1.58-1.59 per euro range for more than a week. Help could be on the way but, then, maybe not. The only one who can really save the dollar now, is Bernanke. All he needs to do is indicate that the rate cuts are over and the bleeding will stop. But that might be too much to hope for. Bernanke has already cut the Fed Funds rate from 5.25 percent to 2.25 percent since September. (way below the 4.1 percent rate of inflation) Its clear that he sees a deflationary tidal wave about to hit sometime in the next few quarters. Why else would he slash rates so aggressively while stretching the Fed's mandate (“make sure the markets function properly”) to the limit? 
 
Last week, former Fed chairman Paul Volcker took the unusual step of publicly chastising Bernanke in a speech he gave to the Economic Club of New York. Volcker's comments indicate the level of frustration with the Fed's dollar-savaging rate cuts which have caused problems around the world. Volcker said “The recession is not the Fed's problem. It's the government's. The Fed's job is to defend the currency and fight inflation—exactly the opposite of what this Fed is doing.” The former Fed chief thinks Bernanke should raise rates now, because if he doesn't, he'll have to raise them even more later, “with even more awful consequences.”
 
Martin Feldstein, chairman of the Council of Economic Advisers under Ronald Reagan, joined Volcker in blasting the Fed and calling for an end to the rate cuts. In a Wall Street Journal editorial on April 15 Feldstein said:
 
“It's time for the Federal Reserve to stop reducing the federal funds rate, because the likely benefit is small compared to the potential damage....Lower interest rates could raise the already high prices of energy and food, which are already triggering riots in developing countries. In order to offset the inflationary impact of higher imported commodity prices, central banks in those countries may raise interest rates. Such contractionary policies would reduce real incomes and exacerbate political instability....lowering interest rates stimulates economic activity to a point at which labor and product markets cause wages and prices to rise. That is unlikely to happen in the U.S. in the coming year. The general weakness of the economy will keep most wages and prices from rising more rapidly.....But high unemployment and low capacity utilization would not prevent lower interest rates from driving up commodity prices.
 
Lower interest rates induce investors to add commodities to their portfolios. When rates are low, portfolio investors will bid up the prices of oil and other commodities to levels at which the expected future returns are in line with the lower rates.”
 
Feldstein is right. Additional cuts will probably have negligible effect on housing and consumer spending, but they could be a death-blow to the dollar. It's not worth it. Lower rates will be devastating for people living in poorer countries. In the US, middle class families spend only 15 percent of net earnings on food. In poorer countries people spend upwards of 75 percent of their income just trying to feed themselves. That's why riots are breaking out everywhere; the Fed's monetary policy is a catalyst for political instability.
 
Besides, lower interest rates don't necessarily increase demand or make credit more easily available. The only way to spark demand is to make sure that wages keep pace with production so that workers can buy the things they produce. That's the only way to create a prosperous economy, too; build a strong and well-educated work-force.
 
“Economic recovery will require resolving the difficult problems of the credit markets, dealing with the millions of homeowners who may now be tempted to default on mortgages that exceed the value of their homes, and reducing the risk that the ongoing decline in house prices will push millions of additional homeowners into a vulnerable, negative equity condition,” says Feldstein. “A lower fed funds rate will not solve any of those problems.”
 
Right again. The problems we face can't be resolved with rate cuts and auction facilities. They require new thinking, fiscal solutions and public engagement. There's no quick fix and no perfect solution; not everyone will get a fair deal. But its pointless to wreck the currency when nothing is gained by it.



Offline InsideJob

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Volker rips Bernanke a new one (very unusual)
« Reply #50 on: April 23, 2008, 04:35:26 pm »
http://www.myprops.org/content/A-blunt-former-Fed-chairman-takes-on-Bernanke-take-heed-of-what-he-says/

A blunt former Fed chairman takes on Bernanke.

Take heed of what he says

AVNER MANDELMAN 00:00 EDT Saturday, April 12, 2008

A few days ago an unusual event took place: Paul Volcker, the mythical U.S. Federal Reserve Board chairman from the Reagan years, criticized the policy of the current Fed chairman, Ben Bernanke, in a speech to the Economic Club of New York.

Just so you grasp how extraordinary this was, you should first understand that normally a past Fed chairman scrupulously avoids saying anything at all about current Fed policy - for the simple reason that the current Fed chairman's words are one of his most important tools: They can sway markets.

This ability does not fade entirely when a Fed chairman leaves.

So when a past Fed chairman speaks, his words can clash with those of the present one and make that one's job difficult. Out of professional courtesy, past Fed chairmen therefore keep quiet; Mr. Volcker especially - the man who hiked interest rates to 20 per cent to kill inflation, at the cost of a deep recession. But last week Mr. Volcker spoke his mind bluntly. He said, in effect, that the current Fed is not doing its job.

This would have been unusual enough. But Mr. Volcker went further. Not only is the Fed not doing its job, he said, but it is doing the wrong job: It is defending the economy and the market, instead of defending the dollar. And just to stick the knife in, Mr. Volcker added that this bad job now will make the real job - defending the greenback - much harder later. It'll cause even greater economic suffering.

In plain words, Mr. Volcker implied that the current Fed is not only incompetent, but that its actions are dangerous.

There is no record of Mr. Bernanke's reaction, nor that of anyone else inside the Fed. But there was plenty of buzz in the market because what Mr. Volcker said amounted to a rousing call to raise interest rates. Yes, raise rates, and do it now.

Can you imagine what this would do to the market? I sure can, which brings me to the gap between physical economic reality as we witness it every day in our physical investigations, and the surreal market chatter we see and hear on TV. This gap has never been wider - but it will inevitably close as markets catch up to reality - as just forecast by former president Ronald Reagan's Fed chairman. Let me cite three items, then go back to Mr. Volcker.

First, commercial real estate. You surely have read about the residential real estate problems - subprime loans syndicated and resold, causing the implosion of several U.S. financial institutions. The writeoffs and damage here total close to a trillion dollars, said the IMF recently. That's about one-seventh of the U.S. gross domestic product, or more than three years of growth.

But what of commercial real estate? I heard recently from some savvy private real estate investors that although commercial real estate fell by 20 per cent, it should fall by a further 20 to 30 per cent before it provides a reasonable rate of return. So whatever economic damage was done to the economy by residential real estate speculation may eventually be equalled by commercial real estate. Say another 10th or seventh of GDP erased, or another two-three years of growth gone.

Second, there's also the war in Iraq. Some U.S. economists recently estimated it has cost about two trillion dollars to date - another two-sevenths of U.S. GDP. That's five more years of GDP growth gone.

And third, we haven't even begun to tally the private equity blowups that are surely coming.

Taken all together, the economic damage spells a very bad and long recession. How to fix it? No problem, say the actions of Mr. Bernanke's Fed. Let's print the missing money - and it doesn't matter if it causes inflation and tanks the dollar. Because that's not our job.

Up to now Mr. Volcker kept quiet, but no more. In his speech he just said, in effect, that the recession is not the Fed's problem. It's the government's. The Fed's job is to defend the currency and fight inflation - exactly the opposite of what this Fed is doing. The solution? Raise interest rates, Mr. Volcker practically said, no matter the consequences now, because if you don't, you'll have to raise them even more later, with even more awful consequences.

Will rates indeed rise? I have no doubt they must. Not now, perhaps, but at the end of this year or the beginning of 2009, with a new president in the White House. The stock market, which usually looks six to nine months ahead, already understands this and may soon react. In fact, when Mr. Volcker's words sink in, the markets are likely to sink as this bear market rally ends.

For surely you understand we are still in a bear market - and only in the beginning of it? Yes, we are experiencing a rally, and like most bear rallies, it is sharp and spiky. But when bear rallies end, they leave a lot of spiked bulls behind - and this rally should be no different. When it is over - in the next few weeks, methinks - the waterfall could continue, as the market begins to digest the inevitability of higher inflation and higher interest rates ahead.

Against all protocol, Mr. Volcker just went out on a limb and warned you of this. I urge you to heed his words.

© The Globe and Mail

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Source http://www.wallstreetbear.com/board/view.php?topic=49097&post=158942
crash - Mon, Jun 30, 2008

BY ROB KIRBY

Do any of you ever wonder who this guy is really working for, anyway? Well, in case anyone cares, here’s what he’s supposed to be doing:


    Mission

    The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.
    Today, the Federal Reserve’s duties fall into four general areas:

          o conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
          o supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
          o maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
          o providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system

Appearances Vs. Realities

Just last week, the good folks over at Barclays Bank chimed-in with this assessment of Benedict Bernake’s efforts to-date:

    “Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. If it hesitates, the bond markets will take matters into their own hands. "This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility," said Mr Bond.”

Perhaps Mr. Bond [James, perhaps?] should have mentioned that the Fed and the old lady of Threadneedle St. [The Bank of England] have the same ownership. Not to worry. Surely there’s room for both of them “under the bus.”

Who Owns the Federal Reserve?
         
The private ownership of the Fed is a closely guarded secret. However, it is generally believed that the following banks/families have at least some stake:

1. Rothschild Bank of London
2. Warburg Bank of Hamburg
3. Rothschild Bank of Berlin
4. Lehman Brothers of New York
5. Lazard Brothers of Paris
6. Kuhn Loeb Bank of New York
7. Israel Moses Seif Banks of Italy
8. Goldman, Sachs of New York
9. Warburg Bank of Amsterdam
10. Chase Manhattan Bank of New York.

Now, the long answer is more complex.

According to the information presented there (assuming not much has changed since 1976) it would appear that the Bank of England actually owns the Federal Reserve and the IRS.

The Bank of England is, in turn, almost certainly owned by the Rothschild family, though if they saw fit to sell shares, they would not be required to report this since these are privately traded companies we're talking about.

Please note that to determine who controls these institutions, it's not enough to simply list the shareholders. One must also take into consideration who, in turn, owns the shareholders themselves. Furthermore, the influence and connections of the chairmen cannot be ignored, as these men are the ones making the decisions.

Then again, perhaps the good folks over at Barclays Bank are simply getting upset with recent declines in the value of their investments [data compliments of Great Red Dragon]: Chart http://www.financialsense.com/Market/kirby/2008/0630.html
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Offline ekt8750

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Bernanke to Testify to Congress Today
« Reply #52 on: July 15, 2008, 09:04:28 am »
This should be really good. Hopefully he gets to face another round of wrath from Ron Paul.
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Offline HeismaN

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Re: Bernanke to Testify to Congress Today
« Reply #53 on: July 15, 2008, 09:08:09 am »
Do you know around what time,  he will testify?

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Re: Bernanke to Testify to Congress Today
« Reply #54 on: July 15, 2008, 09:09:39 am »
Sometime in the 10AM ET hour.
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Offline SuzakaDusk

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Re: Bernanke to Testify to Congress Today
« Reply #55 on: July 15, 2008, 09:11:20 am »
Will Ron Paul be in attendence?
Words can not describe how I feel, I am exiled in the UK away from my husband and babies and I so much love and miss them, I am heartbroken about my ordeal. I am so upset and overwhelmed by it all. I am not taking anything for my depression. I'm trying to hang in there, but it is hard.

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Re: Bernanke to Testify to Congress Today
« Reply #56 on: July 15, 2008, 09:14:28 am »
One would hope so.
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Offline SuzakaDusk

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Re: Bernanke to Testify to Congress Today
« Reply #57 on: July 15, 2008, 09:16:28 am »
Me to. I like how Ron Paul questions the traitor;)
Words can not describe how I feel, I am exiled in the UK away from my husband and babies and I so much love and miss them, I am heartbroken about my ordeal. I am so upset and overwhelmed by it all. I am not taking anything for my depression. I'm trying to hang in there, but it is hard.

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Re: Bernanke to Testify to Congress Today
« Reply #58 on: July 15, 2008, 09:19:22 am »
He will be testifying to the House Banking Committee (Ron Paul's committee) later. Right now he's talking to the Senate Banking Committee.
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Offline Real Truth

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Re: Bernanke to Testify to Congress Today
« Reply #59 on: July 15, 2008, 09:19:57 am »
Me to. I like how Ron Paul questions the traitor;)
time to watch the traitors squirm in their seats
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Offline changedname

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Re: Bernanke reports on sound of Economy.
« Reply #61 on: July 15, 2008, 10:04:18 am »
Your url is linking to new topics here! maybe you need to check your link again?

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Re: Bernanke reports on sound of Economy.
« Reply #62 on: July 15, 2008, 10:11:36 am »
http://www.c-span.org/watch/cs_cspan3_wm.asp?Cat=TV&Code=CS3

Sorry Guys...Disregard link on first post...lol Sorry!
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Offline Kregener

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Re: Bernanke reports on sound of Economy.
« Reply #63 on: July 15, 2008, 10:14:23 am »
Ben Bernanke reporting on a sound Economy = John Wayne Gacy reporting on childcare...
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Re: Bernanke reports on sound of Economy.
« Reply #64 on: July 15, 2008, 10:14:43 am »
Did he just say the devaluation of the Dollar is 25%?

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Offline Kregener

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Re: Bernanke reports on sound of Economy.
« Reply #65 on: July 15, 2008, 10:17:40 am »
25% since Bush took office alone.

Their Great Ponzi Scheme is teetering on the edge.

Brace yourselves...
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Offline dr4gon

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Re: Bernanke reports on sound of Economy.
« Reply #66 on: July 15, 2008, 10:19:53 am »
Ok so he is still talking but let me just say that was one of the most amazing things ive ever seen. The market was plunging big time, all of a sudden Bush and Bernanke are both making statements. I chose to listen to Bush (im not in the mood for Bernankes too cool for school bullshit, i wanted to see someone sweat) and ... wow.....ive never seen him so shit scared. I was, and still am shaken up by it.

Anyway traders seem to be buying Bernankes bullshit because they couldn't have been listening to Bush. Although oil dropped about 9 dollars after he was talking about 'supposed reserves' (supposed my ass). Another bandaid applied, but i feel this is the last chance we will all get before it all goes to hell. Get your gold, get your food, and get ready for total pandemonium.
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Offline dr4gon

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Re: Bernanke reports on sound of Economy.
« Reply #67 on: July 15, 2008, 10:24:30 am »
*Sorry if this is off topic*

And ill add he (Boosh) also let slip that 'covert ops' were going on 'in other fronts' while talking about iraq/afghanistan (iran maybe?) lol I couldnt believe my ears. He slipped up numerous times, like reading from the list of reporters questions in front of him he would say 'ok olivier, next question' and point to the wrong reporter. Then oops he's over there.

I could be wrong but i think today was the day it dawned on him just how far his masters have bent him over and left him for dead.

*edit* also talked about 'groups' (read truth movement) and said 'like moveon.org' (free plug, why didnt he say infowars! ><)

He was a mess

Anyway gonna try get some sleep, who knows what ill wake up to. (<< aussie)
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Paulson and Bernanke Stampede Washington - Continue Raid On The Public Purse
« Reply #70 on: September 19, 2008, 06:50:01 am »
Paulson and Bernanke Stampede Washington - Continue Raid On The Public Purse

Citing Grave Financial Threats, Officials Ready Massive Rescue

Lawmakers Work With Fed, Treasury To Try to Restore The Flow of Money

By Binyamin Appelbaum and Lori Montgomery
Washington Post Staff Writers
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/18/AR2008091804200.html?hpid=topnews

19/09/08 "Washington Post" -- - Friday, September 19, 2008; Page A0 -- The Bush administration is urgently preparing a massive intervention to revive the U.S. financial system, including a plan to sweep away the unpaid loans that are choking banks and blocking the flow of money to borrowers.

Congressional leaders gave bipartisan support to the administration's efforts after a meeting last night with Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke.

Paulson and Bernanke presented a "chilling" picture of the state of the financial system, according to a participant in the meeting who spoke on condition of anonymity. Lawmakers were told that the consequences would be grave if they failed to pass legislation by the end of next week. Sen. Harry Reid (D-Nev.) and Rep. Nancy Pelosi (D-Calif.) committed to meeting that deadline.

The plan involves using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems, according to two sources familiar with what was said at the meeting.

After the meeting, Paulson told reporters the proposal was "an expeditious solution that is aimed right at the heart of this problem."

Also last night, the Fed was considering offering backing for money-market mutual funds, which have had massive withdrawals in recent days, said a source familiar with the discussions.

And the Securities and Exchange Commission is considering further limits on short-selling, a practice that allows investors to bet on a decline in a company's stock price, according to a person familiar with the matter. Critics of the practice say short sellers are driving down the share prices of financial companies, thereby contributing to their destruction.

The government has already tried three times this month to keep money flowing through the financial system. It took over the two largest providers of funding for mortgage loans, Fannie Mae and Freddie Mac. It created a new source of funding for investment banks. And it took over the insurance giant American International Group.

Now the government is contemplating its broadest -- and perhaps most expensive -- intervention to date.

The urgency has only grown with each successive intervention because the first three tries have not worked. People are withdrawing money from money-market mutual funds. Banks are refusing to lend to one another. Several large financial companies need money to stay in business, including the bank Washington Mutual, which is seeking a buyer.

Regulators and the banking industry are increasingly concerned about customer withdrawals from money-market funds. Crane Data, which tracks the industry, said total deposits in money-market funds fell Wednesday by at least $79 billion, or about 2.6 percent. Financial executives have told government officials in recent conversations that the rising pace of withdrawals is the equivalent of a bank run and that if it continues, it will drain a massive and critical source of funding.

Money-market funds are particularly important because they buy short-term debt, which is used by financial companies and other corporations to finance day-to-day activities.

According to legislative aides, yesterday's meeting was arranged after Pelosi called Paulson's office mid-afternoon to discuss the state of the markets. During that call, Paulson asked to meet with Pelosi, Reid and key lawmakers from the banking committees. That meeting took place at 7 p.m. in Pelosi's office on the second floor of the Capitol.

Paulson and Bernanke did not present lawmakers with a written proposal but are expected to do so by tonight, congressional aides said.

During the meeting, one lawmaker worried aloud that Paulson was asking for "a blank check," according to a participant. There was also a "healthy debate" about whether this action would finally stabilize the markets.

"They couldn't answer yes to that question," the participant said.

Paulson and Bernanke generally have kept Congress at arm's length as they have sought to deal with the financial crisis. Yesterday, however, after meeting with congressional leaders, they exchanged awkward compliments with the lawmakers at a news conference. Lawmakers had been increasingly critical of the Fed and Treasury leaders for failing to consult with Capitol Hill. The administration will need congressional approval to commit taxpayer money to its new plan.

"We'll do this as quickly as we can. We're not talking about a month," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, which would probably review the plan before it went to the House floor.

A hearing on the topic that Frank had scheduled for next Wednesday could now become a legislative drafting session, he said.

Also yesterday, Sen. Charles E. Schumer (D-N.Y.), chairman of the Joint Economic Committee, suggested that the government create an entity that would operate much like the Depression-era Reconstruction Finance Corp. -- it would buy "equity and possibly secured debt," providing desperately needed cash to companies while permitting the government to share in any profit.

"The government would get repaid before the others in the financial chain," Schumer said.

If a plan does move forward, Democrats may try to demand concessions from the suddenly humbled industry, Schumer said, including support for a proposal to permit bankruptcy judges to modify mortgages for distressed borrowers. Currently, judges may set new terms for mortgages on second homes but not on primary residences.

That idea is contentious and has been fiercely opposed by the banking industry. Frank said he would instead demand that banks reduce the number of foreclosures.

Still, it's not clear that Democrats would insist on such concessions at the expense of passing the plan quickly.

"The costs of doing nothing are enormous," Frank said. He added that with the recent deterioration in the financial markets, "I think the timetable for something has been greatly sped up."

© Copyright 1996-2008 The Washington Post Company

Offline DCUBED

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Bernanke: Not Only Should Taxpayers Buy the Toxic Waste...
« Reply #71 on: September 24, 2008, 05:11:25 pm »
http://cryptogon.com/?p=4225

Bernanke: Not Only Should Taxpayers Buy the Toxic Waste, They Should Pay Premium Prices for It



In a sane world, these monsters would be torn limb from limb and shredded into maggot food—a role in which they could actually do some good.

Drill holes around the base of a bucket. Place some banker parts in the bucket with a bit of straw and hang it a couple of feet above your chickens. After a few days (during warm weather), the maggots will spill out onto the ground. The chickens will gather below the bucket, waiting for the protein packed morsels to fall from above.

Of course, I’m not actually suggesting that people should kill bankers and turn them into maggot food.

The stench would be overpowering. And that’s before the maggots could do their handy work.

Via: AP:

Federal Reserve Chairman Ben Bernanke told Congress Tuesday the government should pay more than “fire-sale” prices for the toxic assets it would acquire under a proposed $700 billion bailout plan. That could mean both higher initial costs for taxpayers and reduced returns when the assets are later resold.

Bernanke’s comment was the first indication of how he and Treasury Secretary Henry Paulson are thinking about formulating the rescue plan’s medicine in a way that doesn’t kill the patients. Requiring banks and other financial institutions to sell troubled loans and other assets anywhere close to recent sales prices of only a few cents on the dollar could wipe out the net worth of many and lead to a new wave of bank failures.

The Fed chairman said he favors buying the assets based on their “hold-to-maturity” value, which would require an estimate to be made of what each security will eventually be worth as payments come in over the years.

“If the Treasury bids for and then buys assets at a price close to the hold-to-maturity price, there will be substantial benefits,” Bernanke told the Senate Banking Committee. “First, banks will have a basis for valuing those assets and will not have to use fire-sale prices. Their capital will not be unreasonably marked down.”
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Offline Dig

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Are Bush/Paulson/Bernanke paying off a gambing debt due on October 1st?
« Reply #72 on: September 25, 2008, 11:20:00 am »
WTF is the rush with the $trillions of dollars being stolen from 300 million American citizens?

The president acts like a fricking gambling junkie that says...

"I need X money by Y...

But I cannot explain why."

Does anybody buy this total bullshit scam?
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Re: Are Bush/Paulson/Bernanke paying off a gambing debt due on October 1st?
« Reply #73 on: September 25, 2008, 11:21:33 am »
Absolutely Not, Arrest the criminals.

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Markets holding steady, but Bernanke will cut fed rate to devalue the dollar!
« Reply #74 on: October 07, 2008, 07:07:01 am »
The federal reserve has to be the greatest threat to the free world ever.

International markets held steady and things were calming sown/leveling off. 

So what does the fed do?

DROPS INTEREST RATES TO DEVALUE THE DOLLAR!

WTF is wrong with these financial terrorists?
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Bernanke hints at rate cut
« Reply #75 on: October 07, 2008, 01:47:51 pm »
http://biz.yahoo.com/cnnm/081007/100708_bernanke_speech.html

Bernanke sees worsening economy, hints at rate cuts

Federal Reserve Chairman Ben Bernanke predicted that the global financial markets crisis is likely to restrain the economy well into next year and signaled that the Fed may be getting ready to cut interest rates.

But he said he believes the unprecedented steps taken to have the Treasury Department and the Fed intervene in financial markets were done in time to prevent more expensive and permanent damage to the nation's leading financial institutions.

In a speech before the National Association of Business Economics in Washington on Tuesday, Bernanke said the threat of inflation has receded recently, while the economy has continued to weaken. This could be interpreted as a sign that the central bank might be preparing to lower its key fed funds rate soon.

"Overall, the combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased," he said.

"In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate," he added.

The fed funds rate is the primary lever the central bank uses to influence the economy. Lower rates can help reduce the borrowing costs for businesses and consumers on a wide range of loans, including business lines of credit, credit card rates and home equity loans. These cheaper loans can increase economic activity.

But lower rates can also add to inflation pressures since they tend to reduce the value of the dollar and make imported goods, most notably oil, more expensive.

The Fed cut rates seven times between September 2007 and this April, but held them steady at 2% at its past three meetings due to inflation concerns.

The Fed's next scheduled meeting is Oct. 28-29. Some investors and economists have suggested the current financial crisis could lead the Fed to announce an emergency rate cut ahead of that meeting.

Bernanke again pointed to falling housing prices as a primary cause of the problems in the nation's financial sector. But he warned "the slowdown in economic activity has spread outside the housing sector."

And he added that tighter credit conditions mean that the economic weakness is likely to continue into 2009.

"The heightened financial turmoil that we have experienced of late may well lengthen the period of weak economic performance," he said.

Bernanke defended the $700 billion bailout package passed by Congress and signed into law last week. The rescue plan will allow Treasury to buy damaged mortgage-backed securities from financial firms.

Bernanke said the bailout, as well as moves by the Fed this week to inject hundreds of billions more into the banking system and buy commercial paper used by many businesses to finance their day-to-day operations, were necessary actions to take at this time of economic stress.

"These are momentous steps, but they are being taken to address a problem of historic dimensions," he said.

And he predicted that the efforts would be successful in returning the economy into a growth path.

"The steps being taken now to restore confidence in our institutions and markets will go far to resolving the current dislocations in the markets," he predicted. "I believe that the bold actions taken...together with the natural recuperative powers of the financial markets, will lay the groundwork for financial and economic recovery."
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Offline heavyhebrew

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Re: Bernanke hints at rate cut
« Reply #76 on: October 07, 2008, 01:55:02 pm »
This clown has no clue.
Need to manufacture a crisis but worried about deniablity? Put someone in clown shoes in charge.
We work jobs we hate to pay for stuff we don't need to impress people we don't like. Am I the crazy one here?

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Re: Bernanke hints at rate cut
« Reply #77 on: October 07, 2008, 01:55:24 pm »
People are already maxed out on credit (or unemployed), so who the heck can even qualify for a loan these days?

Indeed, the last I heard major banks were denying loans even to those with high credit ratings.
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Re: Bernanke hints at rate cut
« Reply #78 on: October 07, 2008, 02:08:41 pm »
Exactly, you don't solve a debt crisis by making more debt available.

I'm actually glad that I had to quit work to stay home and take care of my vaccine-injured child (who is recovered now).  We had to cut way back on our spending and we experienced some bad credit for a while that prevented us from being tempted to charge everything or borrow on our home equity.  I really don't think I would have done that though because I saw how stressful it was to manage the little debt we had.  But losing one income forced us to learn to live frugal.  Now I'm not so afraid of living through all this chaos.  It will be tough but at least I won't be clueless like the rest of my friends who are living paycheck to paycheck to keep up with their credit card/ home equity payments.

Offline larsonstdoc

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Re: Bernanke hints at rate cut
« Reply #79 on: October 07, 2008, 02:13:38 pm »



  A rate cut will tank the dollar and gold and silver SHOULD GO UP.
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