I would like to speak to the ones who think this dolt is a hero. Boy...Society has gotten to the point where the ones that start the fire, let it spread, add more fuel, add more oxygen, then tell only the rich/wealthy to get out of the theatre, while leaving 99% of society inside to inhale the smoke are now considered hero's?
Where have you gone Joe DiMaggio?
www.nytimes.com/2009/08/20/business/20bernanke.html?_r=1&ref=business"
Forget for the moment that Bernanke was totally oblivious to what was happening.....
tradersutra.blogspot.com/2009/07/ron-paul-lays-smackdown-on-bernanke.html
tradersutra.blogspot.com/2009/08/opposite-ends-of-reality.html
...So after the worst credit crisis in our lifetimes, he should have allowed the recession to run its course. It would have been very therapeutic and cathartic, instead the Fed decided last year to again bail out the economy by greatly expanding the money supply. In this latest case of artificial intervention, the expansion in the monetary base was a record breaking trillion dollars.
What should become clear fairly soon is that the apparent recovery in the markets and the economy has been built primarily on the devaluation of the US Dollar, not from a healing of the economy's true fundamentals. It was easy, lets destroy the dollar thus making equities in play once again. Totally ass backwards.
The only reason that the growth in money supply has subsided is that the morons at the Fed and Treasury actually think they have stabilized the economy. The only thing they have stabilized is the Wall Street Bonus Pool, the economy is the electorate that pays the bills, and we are hurting. There stupid misguided belief that they have averted a depression will only bring more pain.....
.....Therefore, the most likely result will be a major correction in the market and a resumption of economic deterioration. Unfortunately, that should eventually cause the Fed to resume its misguided efforts to bolster growth by wrecking the USD.
The horrible problem that Bernanke has is that to defend ones own currency, which is real patriotism, one has to raise interest rates or unwind money supply growth. This is the only way provide for a viable and long lasting recovery. The words long term is not politically feasible, so short term its business as usual.
The ones at Treasury/Fed/Wall Street know that partially healing the economy is healing the stock market. They needed to destroy the safety trade. So the basis for this healing is a Fed induced 12% drop in the USD since March alone, which has caused the SPX 500 to rally 50%, Copper to rally 80% and Crude to rally some 60%. It's just not a coincidence when the dollar goes down, stocks and especially commodities go up.
It seems to me that the only ones living in realty are the electorate. Consumers have already started to deleverage and save more. This is obviously good to see, but bad for government, as they want more and more people with their head in the sand, so they can screw you in the process. Consumers have kinda figured it out, but Treasury/Fed just haven't yet acknowledged the reality of the addiction to debt and inflation as the basis for economic activity.
What I find most amazing about all this is how most in Washington and Wall Street fail to recognize what caused the crisis in the first place. The problem never was that there wasn't enough borrowing. The problem was that the level of debt in the country had become unsustainable. In fact, as a country we are still actually increasing our level of debt, which is completely preposterous.
You just cant keep hammering your own currency, normal people have figured it out, too bad government hasn't.
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