16 votes

Bernanke missed signs of crisis

http://www.nydailynews.com/news/national/bernanke-missed-sig...

“I do not expect insolvency or near insolvency among major financial institutions,” Bernanke said at the Fed’s December 2007 meeting, as the economy was already starting to spiral into the Great Recession."

I mean, how could he have POSSIBLY known? It is not like there was a Congressman in his face badgering him about it....

FLASHBACK!
Ben in 2002:
"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm"

Got rope?

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Uncle Ben's eulogy of the US economy (in his own words)

[Clasp hands.] Let us pray. Uncle Ben, will you say you eulogy, please.

    Remarks by Governor Ben S. Bernanke, 2004
    At the H. Parker Willis Lecture in Economic Policy, Washington and Lee University, Lexington, Virginia
    March 2, 2004

    Money, Gold, and the Great Depression (73 references to depression) By Ben Bernanke, the Greatest Depressionist
    (Posted by Uncle Ben's employer, The Federal Reserve)

    In September 1931, following a period of financial upheaval in Europe that created concerns about British investments on the Continent, speculators attacked the British pound, presenting pounds to the Bank of England and demanding gold in return. Faced with the heavy demands of speculators for gold and a widespread loss of confidence in the pound, the Bank of England quickly depleted its gold reserves. Unable to continue supporting the pound at its official value, Great Britain was forced to leave the gold standard, allowing the pound to float freely, its value determined by market forces.

    With the collapse of the pound, speculators turned their attention to the U.S. dollar, which (given the economic difficulties the United States was experiencing in the fall of 1931) looked to many to be the next currency in line for devaluation. Central banks as well as private investors converted a substantial quantity of dollar assets to gold in September and October of 1931, reducing the Federal Reserve's gold reserves. The speculative attack on the dollar also helped to create a panic in the U.S. banking system. Fearing imminent devaluation of the dollar, many foreign and domestic depositors withdrew their funds from U.S. banks in order to convert them into gold or other assets. The worsening economic situation also made depositors increasingly distrustful of banks as a place to keep their savings. During this period, deposit insurance was virtually nonexistent, so that the failure of a bank might cause depositors to lose all or most of their savings. Thus, depositors who feared that a bank might fail rushed to withdraw their funds. Banking panics, if severe enough, could become self-confirming prophecies. During the 1930s, thousands of U.S. banks experienced runs by depositors and subsequently failed.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

"The Greatest Depression" by Uncle Ben, the Depressionist

New & improved! The greatest depression.

  • Excess of excesses!
  • Liquidity of liquidity!
  • Too-Big-To-Fail banks swallow each other!
  • Helicopters rain down even more liquidity... Direct drop cash bundles! Free cash!

Uncle Ben meticulously studied the Great Depression in college. He presides over the ever deepening "Greatest Depression!" He is the "Greatest Depressionist!"

Terms & Conditions: Duration too long to conclude anything. Abysmal conditions everywhere. Pockets of extreme depression.

Disclaimer: Depression claims to be underwritten by taxpayers. Helicopters sold separately.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul