I wonder what sort of father Ben Bernanke was to his kids.
Like a pentulant child, the market has found that Big Ben is a softey. He's willing to pour cheap money into the economy at the slightest downward twinge. His easy money approach only encourages the market not to rally because they can try to get more and cheaper money by not reacting in a positive manner when he puts money into the market.
You don't give into a tantrum with a child, you just ignore them until they realize that it is a lot of work to have a tantrum and not get any result. This way, you help your children understand that bad behavior is not rewarded. In teh case of the economy, the bad behavior is pricing interest rate cuts into the market before they are announced. We've rewarded the estimatation of Ben's softness on
While Bernanke might be an expert on the Great Depression, he's ignoring the reality that our government and our financial industry are effectively bankrupt. The false subprime securities sold as assets to investors are falling apart, and only his relaxation of the regulations have kept the financial industry afloat.
For the amount the government is investing in the stimulus program, they could have bought the bad loans from the banks and provided much needed good valued assets to both the government and the banks. Instead, we are going to inflate the size of the problem by stimulating more false loans on bad property. Not to mention destroying the US currency as a store of value.
Subscribe to:
Post Comments (Atom)
4 comments:
Gold manipulation
Testimony of Chairman Alan Greenspan
The regulation of OTC derivatives
Before the Committee on Banking and Financial Services, U.S. House of Representatives
July 24, 1998 Potential Application of the CEA to OTC Derivatives
"The vast majority of privately negotiated OTC contracts are settled in cash rather than through delivery. Cash settlement typically is based on a rate or price in a highly liquid market with a very large or virtually unlimited deliverable supply, for example, LIBOR or the spot dollar-yen exchange rate. To be sure, there are a limited number of OTC derivative contracts that apply to nonfinancial underlying assets. There is a significant business in oil-based derivatives, for example. But unlike farm crops, especially near the end of a crop season, private counterparties in oil contracts have virtually no ability to restrict the worldwide supply of this commodity. (Even OPEC has been less than successful over the years.) Nor can private counterparties restrict supplies of GOLD, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease GOLD in increasing quantities should the price rise."
The economy is a hot air balloon and No one has any idea the amount of hot air available to keep it afloat. I think there is a good deal of hot air left myself if based on nothing else than the belief that the system will rise again to new heights. You would be amazed how long a failed system can keep operating if enough people believe in it. Don't underestimate group belief dynamics. Thus don't be surprised by all upside to the economy.
The world wealthies Family and the Financial arm to the Queen of Enlgand the Rothschild Empire of Gold, Oil & Drugs is worth an estimated 400 Trillion Dollars.
After his wedding he and his wife stayed in the White House. He is responsible for the coming depression and is the arhitech of the NWO. Their quest is world government, Religon and God Amun.
Vatica=Reiligon,Spiituality
London=Finance
DC=MilitaryForce
Watch "Secret Rulers 1/27"
Well, the city is probably going to remain one of the financial headquarters of the world. I can't say the same for NYC. Hey, Rothschild interest set the price of gold every afernoon right there in London. People that are job hunting right now already know things are horrible here in the U.S. We have very bright engineers that can't find work. Sadly, even the People on TV will have to admit we are in a depression 12 months from now. There will be NO denying it.
The average person may think that these names represent foundations that help the people of the world (and would be mistaken). What most don't know is that these powerful families had help from the very Rothschild fortune which today is the largest unknown entity that affects the future freedom of every person on the planet.
Post a Comment