http://theeconomiccollapseblog.com
Did you see Federal Reserve Chairman Ben Bernanke on 60
Minutes the other night? Bernanke portrayed the Federal Reserve as the
great protector of the U.S. economy, he claimed that unemployment would be 15
percent higher if the Federal Reserve had sat back and done nothing during the
financial crisis and he even started laying the groundwork for a third round of
quantitative easing. Unfortunately, 60 Minutes did not ask Bernanke any
hard questions and did not challenge him on his past record. It was
almost as if they considered Bernanke to be above criticism. But someone
in the mainstream media should be taking a closer look at this guy and his
record. The truth is that the incompetence that Bernanke has displayed
over the past few years makes the
Not that Bernanke is solely responsible. His
predecessor, Alan Greenspan, was responsible for many of the policies that have
brought us to this point. In addition, most of the other presidents of
the individual Federal Reserve banks across the
But you would think at some point someone in authority would
be calling for Bernanke to resign. Accountability has to begin somewhere.
The Bernanke quotes that you will read below reveal a pattern
of incompetence and mismanagement that is absolutely mind blowing.
Looking back now, we can see that Bernanke was wrong about almost everything.
But the mainstream media and our top politicians keep
insisting that Bernanke is the man to lead our economy into a bright future.
It is almost as if we have been transported into some bizarre
episode of "The Twilight Zone" where the more incompetence someone
exhibits the more they are to be praised.
The following are 30 Ben Bernanke quotes that are so stupid
that you won't know whether to laugh or cry....
#1 (October 20, 2005) "House prices have risen by nearly 25 percent
over the past two years. Although speculative activity has increased in
some areas, at a national level these price increases largely reflect strong
economic fundamentals."
#2 (On 60
Minutes in response to a question about what would have happened if the Federal
Reserve had not "bailed out" the
#3 (February 15, 2006) "Housing markets are cooling a bit.
Our expectation is that the decline in activity or the slowing in activity will
be moderate, that house prices will probably continue to rise."
#4 (January 10, 2008) "The Federal Reserve is not currently
forecasting a recession."
#5 (When asked directly
during a congressional hearing if the Federal Reserve would monetize
#6 "One myth that’s out there is that what we’re doing is
printing money. We’re not printing money."
#7
"The money supply is not changing in any significant way. What we’re doing
is lowering interest rates by buying Treasury securities."
#8 (November 21, 2002)
"The
#9 (March
28, 2007) "At this juncture, however, the impact on the broader economy
and financial markets of the problems in the subprime market seems likely to be
contained. In particular, mortgages to prime borrowers and fixed-rate mortgages
to all classes of borrowers continue to perform well, with low rates of
delinquency."
#10 (July, 2005) "We’ve never had a decline in house prices on a
nationwide basis. So, what I think what is more likely is that house
prices will slow, maybe stabilize, might slow consumption spending a bit. I
don’t think it’s gonna drive the economy too far from
its full employment path, though."
#11
"Although low inflation is generally good, inflation that is too low can
pose risks to the economy - especially when the economy is struggling."
#12 (February 15, 2007) "Despite the ongoing adjustments in the
housing sector, overall economic prospects for households remain good.
Household finances appear generally solid, and delinquency rates on most types
of consumer loans and residential mortgages remain low."
#13
(October 31, 2007) "It is not the responsibility of the Federal Reserve –
nor would it be appropriate – to protect lenders and investors from the consequences
of their financial decisions."
#14 (On the possibility
that the Fed might launch QE3) "Oh, it's certainly possible. And again, it
depends on the efficacy of the program. It depends on inflation. And finally it
depends on how the economy looks."
#15
(November 15, 2005) "With respect to their safety, derivatives, for the
most part, are traded among very sophisticated financial institutions and
individuals who have considerable incentive to understand them and to use them
properly."
#16 (January 18, 2008) "[The
#17
"I wish I'd been omniscient and seen the crisis coming."
#18 (May
17, 2007) "All that said, given the fundamental factors in place that
should support the demand for housing, we believe the effect of the troubles in
the subprime sector on the broader housing market will likely be limited, and
we do not expect significant spillovers from the subprime market to the rest of
the economy or to the financial system. The vast majority of mortgages,
including even subprime mortgages, continue to perform well. Past gains
in house prices have left most homeowners with significant amounts of home
equity, and growth in jobs and incomes should help keep the financial
obligations of most households manageable."
#19 "The GSEs are adequately
capitalized. They are in no danger of failing."
#20 (Two
months before Fannie Mae and Freddie Mac collapsed and were nationalized)
"They will make it through the storm."
#21 (September 23rd, 2008) "My interest is solely for the
strength and recovery of the
#22
"Economics has many substantive areas of knowledge where there is
agreement but also contains areas of controversy. That's inescapable."
#23 "I don't think that Chinese ownership of
#24
"We’ve been very, very clear that we will not allow inflation to rise
above 2 percent."
#25 "...inflation is
running at rates that are too low relative to the levels that the Committee
judges to be most consistent with the Federal Reserve's dual mandate in the
longer run."
#26 (June 10, 2008) "The risk that the economy has entered a
substantial downturn appears to have diminished over the past month or so."
#27
"Not all information is beneficial."
#28 "The financial crisis appears to be mostly behind us, and the
economy seems to have stabilized and is expanding again."
#29 "Similarly, the
mandate-consistent inflation rate--the inflation rate that best promotes our dual
objectives in the long run--is not necessarily zero; indeed, Committee
participants have generally judged that a modestly positive inflation rate over
the longer run is most consistent with the dual mandate."
#30
(October 4, 2006) "If current trends continue,
the typical