Bernanke led economy proving critics clueless

[itfitzme]

I suppose not being able to know a particle's position and momentum at the same time is a failure of modern physics?

That is quite funny.

 

[JimBowie1958]

Bernanke is so stupid he is evil.

Say What? 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 rsponse to a question about what would have happened if the Federal Reserve had not "bailed out" the U.S. economy) "Unemployment would be much, much higher. It might be something like it was in the Depression. Twenty-five percent."

#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 U.S. government debt) "The Federal Reserve will not monetize the debt."

#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 U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."

#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 U.S. economy] has a strong labor force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself."

#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 U.S. economy."

#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 U.S. assets is so large as to put our country at risk economically."


#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 U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account."

 

[Paulie]

Bernanke is so stupid he is evil.

Say What? 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 rsponse to a question about what would have happened if the Federal Reserve had not "bailed out" the U.S. economy) "Unemployment would be much, much higher. It might be something like it was in the Depression. Twenty-five percent."

#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 U.S. government debt) "The Federal Reserve will not monetize the debt."

#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 U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."

#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 U.S. economy] has a strong labor force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself."

#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 U.S. economy."

#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 U.S. assets is so large as to put our country at risk economically."


#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 U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account."

Well you don't expect him to warn the peons to exit their positions before the privileged can all get out, do you?

 

[EdwardBaiamonte]

DSGE and the Fed use external negative feedback and multiply the magnitude of the error by a lot so that they correct to very fine levels.

very fine levels??? how reassuring, so the next time the Fed won't get hit over the head with a Great Depression, 4% yearly inflation, numerous recessions, or a depression inducing housing bubble!! Maybe to you a depression is within the bounds of fine tuning??

Perfect. And you don't see anything wrong with any of these ideas?

a) the Fed won't get hit over the head with a Great Depression.

b) 4% yearly inflation.

c) numerous recessions.

d) a depression inducing housing bubble.

e) Star: Ireland currenly has 15% unemployment and a economy that is 15% below its peak and its still in recession,

Ed: Actually, Europe is in recession because of financial crisis, not because of low Irish corporate taxes. OMG!!

Nothing about your responses strikes you as odd?

why not stop wasting everyone's time with the constant BS, state an important position and defend it. You assume you are intelligent but forgot to ever show it. A slight oversight based on a very liberal ego?

 

[itfitzme]

Okay, I'll play

why not stop wasting everyone's time with the constant BS,

Who's time is that? You're time? Like someone is forcing you to read and post? You just cannot help yourself and it's my fault? Your a big boy. If you don't want to post, don't post.

The time of someone else that reads comments? Like anyone is forcing other people to waste their time reading the posts on the forum? I'm sure no one else feels like anyone is making them waste their time.

Any sane person reading this post gets that immediately. I don't need to show anything, you do that all by yourself.

State an important position and defend it.

I don't have an "important" position. There is the information and what can be concluded from it. You present some definitive conclusion, I look for a way to demonstrate it. Then I am done.

You say that not following the rules of the Gold Standard caused the recessions, I find the data to see if the conclusion has validity. It turns out it doesn't.

You claim that Friedman says the failure to follow the rules of the Gold Standard was the cause of the problems during the Great Depression, I find "

Still, I did present an important position and defended it. The gold standard was in place through numerous business cycles and didn't do anything. Freidman and others have shown that following the gold standard restricted central banks from being able to manage the money supply and stop deflation.

"In contrast, economists (such as Barry Eichengreen, Milton Friedman and Peter Temin) point to monetary factors such as actions by the US Federal Reserve that contracted the money supply, as well as Britain's decision to return to the Gold Standard at pre–World War I parities (US$4.86:£1)."

"According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, Great Britain and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer."

You change the topic from the original objective idea to the person, and I follow along. You want to talk about the person, okay, let's talk about you.

You call someone a liberal, and I point out that your a lunatic. If you didn't change the subject from the objective idea to a person, I'd stick with the objective idea.

I present the objective idea, like the information that shows the gold standard is meaningless. You follow up with "your a liberal". I say your a wing nut.

How about you stop wasting my time.

You assume you are intelligent but forgot to ever show it. A slight oversight based on a very liberal ego?

I don't assume anything. You made the claims, I just see if I can apply good logic and reason to it to determine if it is or is not correct. If I can show it is correct, I will do that. If I can show it isn't, I'll do that.

I don't need to prove I'm "intelligent". It is what it is. I'm sure not holding my breath for your approval.

Your mistake is thinking I have an ego to defend. I don't feel bad about myself. I'm just looking for interesting ideas to follow up on. You clearly have an ego to defend.

I don't care. Nor am I trying to convince you of anything. It's pretty obvious that you have taken a "position" against all that you see as "liberal" and your going to defend it to the edge of sanity.

It turns out that you present ideas that happen to be wrong. That isn't my problem, that is yours. Now I know, the gold standard doesn't mean anything.

If you were paying attention, that should be obvious. My position is that the gold standard is meaningless. I don't need to "defend" it. I already made my case. Your not going to be convinced. But that is your problem, not mine.

Your having is your looking for this grand fight between the good guys (you) and the bad guys, "liberals". You create a grand fight that doesn't exist.

You imagine that anyone that doesn't agree with you is part of this nefarious group of "liberals" out to destroy the world. 99% of people just work for a living, go home after a long day, make dinner, maybe play with their kid, pay the bills, do some chores, read the news or watch tv, go to bed, and start all over again the next day. It's not a world full of good guys and bad guys.

The facts and reasons stand on their own. You've created this whole fantasy in your head which includes your "rules" of arguing some "position".

Invariably, when presented with standard reason, you come back with "liberal moron" or some other ad hominum attack.

I am sure someone reads your "liberal moron" reply and thinks, "Oh yeah, he sure told him". And someone reads my presentation and thinks, "That makes sense." Some one else read it and thinks, "what the f?" Someone else thinks, "Why does he even bother?" That is how it goes, people decide for themselves.

If you don't want to waste your time, then don't waste it.

Territorial behavior knows no limits. "Get out of my forum!!!"

 

[EdwardBaiamonte]

.

Territorial behavior knows no limits. "Get out of my forum!!!"

PLease cut the BS. Can you say if you are liberal or conservative and why. That is what the voting booth asks. Think!!

 

[ThinkCritically]

Bernanke is either the biggest idiot or the biggest crook Fed Chairman that we have ever had. Seriously this is the same guy who thought the housing bubble was of no concern, and he also thought that we were entering a new era in capitalism in which the boom bust cycle would not occur anymore...he called it "the great moderation". Serious he thought the boom bust cycle was a thing of the past.....Either he is a huge crook or a complete pompous idiot.

 

[Rocko]

More than a year after Republicans from House Speaker John Boehner of Ohio to presidential candidate Ron Paul of Texas warned that the Fed’s second round of asset purchases risked a sharp acceleration in prices, the surge has failed to materialize. The personal-consumption-expenditures price index rose 2.4 percent for the 12 months ending in December, near the central bank’s 2 percent target.

Don't get too esxcited, numbskulls. it takes time to build. And it is building. Fluff pieces like this that attempt to get people to relax and build confidence, will only have those that followed, in the hot seat when the next round knocks on the door.

That's all i read. The above paragraph. Bernanke is a fucking moron, or he would have known about the housing bubble 5 years before it popped like Ron paul did. Time frame is never offered on these things in the prediction./ it's all about knowing how it works.

lmao at Ron Paul being a wiser economist than Bernanke.

Ron Paul is a smart guy, and for a politican, he knows his stuff, but he's no where near the genius you think he is.

Ron Paul's shtick is very simple, he wants us on the gold standard and always believes in tightening, so while that's not happening, he's always going to reguritate a worst case senerio presented by a real economist.

The man is a doctor, a congressman, he is many things, but he's not a economic genius. As far as I know, he hasen't been paid for his economic prowess or hasn't done anything special in the market.

 

[Brutus]

Bernanke is either the biggest idiot or the biggest crook Fed Chairman that we have ever had. Seriously this is the same guy who thought the housing bubble was of no concern, and he also thought that we were entering a new era in capitalism in which the boom bust cycle would not occur anymore...he called it "the great moderation". Serious he thought the boom bust cycle was a thing of the past.....Either he is a huge crook or a complete pompous idiot.

In fact everyone is an idiot when it comes to predicting the future. This is why all of Wall St and all of America did not protect itself from the bubble . You need to learn to think before you learn to think critically. Sorry

 

[ThinkCritically]

Bernanke is either the biggest idiot or the biggest crook Fed Chairman that we have ever had. Seriously this is the same guy who thought the housing bubble was of no concern, and he also thought that we were entering a new era in capitalism in which the boom bust cycle would not occur anymore...he called it "the great moderation". Serious he thought the boom bust cycle was a thing of the past.....Either he is a huge crook or a complete pompous idiot.

In fact everyone is an idiot when it comes to predicting the future. This is why all of Wall St and all of America did not protect itself from the bubble . You need to learn to think before you learn to think critically. Sorry

Correction most. not all. Many saw this thing coming a mile away. Sorry if I've offended you, but it is frustrating to think about the arrogance of Mr. Bernanke.

 

[KissMy]

They also used to call Alan Greenspan - The Maestro. It doesn't take a genius to adjust the speed of the printing press or finance the countries debt 10 years out at zero percent. All the praise now bestowed on Bernanke will evaporate when the thing blows up. Bernanke was one of the Failed Fed Financial Regulators who allowed the sub-prime bubble to grow rite under his nose in the first place.

 

[ThinkCritically]

They also used to call Alan Greenspan - The Maestro. It doesn't take a genius to adjust the speed of the printing press or finance the countries debt 10 years out at zero percent. All the praise will evaporate when the thing blows up. Greenspan was one of the Failed Fed Financial Regulators who allowed the subprime bubble to grow rite under his nose in the first place.

True the seedling of this disaster took place under Greenspan and Clinton's Fair Housing Act and Equal Credit Opportunity. We can thank Greenspan for breaking the myth of "rational behavior" in the market. He too was overly confident in himself and the marketplace in general.