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Thread: Bernanke says we can do the same thing and hope for different results

  1. #1
    Join Date
    Jan 2004
    Posts
    8,178

    Bernanke says we can do the same thing and hope for different results

    Isn't that one definition of insanity??

    Bernanke Says Fed Prepared to Boost ‘Close to Faltering’ Growth - Businessweek

    Bernanke Says Fed Prepared to Boost ‘Close to Faltering’ Growth

    Oct. 4 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the central bank can take further steps to sustain a recovery that’s “close to faltering” and cautioned lawmakers against making changes in fiscal policy that harm growth.

    The Fed can give more information about its pledge to keep interest rates low at least through mid-2013, reduce the rate paid on banks’ reserve deposits or buy more securities, Bernanke said today in testimony to Congress’s Joint Economic Committee in Washington, reiterating options he mentioned in July. He signaled that higher inflation this year won’t stop the Fed, saying it hasn’t become “ingrained” in the economy.
    The only one of those they have not already tried is the first...giving more information about its pledge to keep rates low through at leads mid 2013. Does anybody actually believe that would make a difference. Granted in the past markets have always jumped every time the fed whispers "low rates" but I think we are pretty much immune to that right now.

    The last round of QE did not work. Another round will also not work. The very idea is nonsensical. Consumers are tapped out...we have seen massive demand destruction...so making money cheaper for corporations and the wealthy will....do not a damn thing.

    The one place that it COULD make a difference is in mortgage refinancing. I have some numbers right here from my data service. If EVERY American who is ELIGIBLE to refinance their home did so at 100% cash out, the best case scenario is an increase in GDP of .41-.54 per year for the next 3 years.

    That does not excite me. The reality is that too many people are upside down in their homes, too many people no longer qualify for refinancing, and home values are still dropping in MOST of the country. Besides being a (pathetic) attempt to reinflate the housing bubble, what is the point of this??

    So, the fed is not out of ammo. It is just out of ammo that might actually work.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  2. #2
    Join Date
    Sep 2012
    Posts
    22

    bernanke is a treasonous bastard and will get his

    and all the dems who enabled hima nd got easy free money looted from taxpayer will get thiers

  3. #3
    Join Date
    Aug 2010
    Posts
    80

    Bernanke trying to buiy time?

    Daewoo, I scratched my head the first time I encountered the concept of our federal reserve printing more money to purchase back U.S. Federal debt on open public markets.

    It’s less inflationary than many other government actions that have been or are being considered to be enacted by the Federal Reserve; but it seem pointless if not contrary to our own interests.

    Federal Reserve Chairman Bernanke has recently mentioned it again. A Washington Post editorial is the only explanation that possibly justifies the Federal Reserve’s decision. The U.S. Congress has been unable to agree upon a budget. If they ever concur, it’s likely that what they’ll agree upon will not be a balanced budget. The Federal Reserve board’s attempting to spin our financial wheels until the U.S. Congress meets it fiduciary responsibilities.

    Anyone who have dealt with chronic cash flow problems know they MAY be able to shift and transfer revenues for awhile, but they’re depending upon luck. Inevitably we must encounter some undesirable circumstances some times in our futures. Unless we cut spending and/or increase revenues, the day of reconciliation will come and the consequences of will be undeniable.
    We cannot predict how much time the Federal Reserve’s gaining, but we are doomed to failure if the U.S. Congress fails to do right.

    Respectfully, Supposn

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