"I believe if the credit markets are not functioning, that jobs will be lost, the unemployment rate will rise, more houses will be foreclosed upon, GDP will contract, that the economy will just not be able to recover.'' - Bernanke, 9/23/08 It's called a recession. Call it a depression if you want. When has the US not recovered from a recession/depression? Cite me one time in history, Bernanke, if you are such an astute observer of history. Scare tactics, scare tactics...
Sounds just like I was saying a year ago. You think job losses are bad now wait to we start seeing upwards of 150k job losses a month and unemployment rates jumping to 8-9% maybe even 10%+ by 2009-2010, not only that GDP is going DOWN DOWN DOWN, its going to drop SIGNIFICANTLY OVER THE NEXT 12 months, you will be happy to see 0%. Why they took so long to act is beyond me, this was showing signs of falling apart in 2006, how can ANYONE not F$%king see this is beyond me. These markets are far worse today then they were in 1929 and 1987 combined.
Berny et al are solely to blame for our economy. Not Bush, not Hussein, not global warming. Part of being a professional is being honest enough to timely admit when a problem is over your head. The above quote indicates he has said that things are out of control. That means, to me, that we are facing a depression. Now granted, I could have told you that without his words. Look at the banking leverage and the mixture of debt to foreigners vs. our GDP. The closer GDP is to debt service, the lower the standard of living as sustainable. Benny and company have failed to right the recession, and I call for their dismissal. Oh wait, the Fed can't be fired, I forgot.
Bernanke, when asked how any 'auction' to buy financial assets with taxpayers' money would work, said "we need to consult with experts to determine that." Come again? You and Hank are asking for a trillion dollar blank check, and you will have to "consult with experts?" You haven't done that YET? WTF!!!!!!!!!
Exactly, these politicians are the weakest forward thinkers. When things were just starting in 2006, you should have been looking to make changes so we are not where we are in 2008/2009. Now in 2008, we should be looking to see how we can make the economy stronger when we begin the next up cycle. That is by wringing out the excesses, letting weak companies fail, and teaching risk/reward through free market forces. Instead, let's prolong the shit, panic now, so that we can have a 70's style "recovery" or worse. Bernanke has a PhD thesis on the economic cycle? Give me a fucking break.
Here's another one: "Federal Reserve Chairman Ben Bernanke bluntly warned Congress that it risks a recession, with higher unemployment and increased home foreclosures, if it fails to act on the Bush administrationâs plan to bail out the financial industry." ------------------------------------- I've experienced many recessions in my lifetime. Funny, I remember recovering from them every time. Please explain to me, Bernanke, why it is so necessary to pass absurd and irresponsible economic plans in order to avoid one?