Bubble ben bernanke says DONT END STIMULUS SPENDING!!

Discussion in 'Economics' started by S2007S, Jul 22, 2010.

  1. S2007S


    Yep you heard that right, don't stop spending, keep printing fucking money until everything is all great and happy again, that's the answer to this credit crisis is to just keep printing our way out of it which in the long run will only cause even more significant downfalls to the US economy. Everyone's answer to create growth in this global economy is to spend money no one has. Bubble ben bernanke is doing the same thing greenspan did, keeping rates low and pumping money into the system to prop up all worthless assets. This economy is so used to these easy money policies that letting things get back to normal will take decades not 2 or 4 years like the fools keep screaming. Just wait until the next stimulus is brought forth, thats the only way to keep the prop job going on. They cant just let the economy do its up and downs on its own, they have to stimulate it to make it look like its growing when in reality its doing absolutely nothing.

    Go BUBBLE ben bernanke!!!

    Fed chief to Congress: Don't end stimulus spending
    Bernanke urges Congress not to slash spending or raise taxes during the economic recovery

    Jeannine Aversa, AP Economics Writer, On Thursday July 22, 2010, 2:47 pm

    WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke told Congress Thursday that the fragile economy needs government stimulus spending to strengthen the recovery and help reduce unemployment.

    Testifying before the House Financial Services Committee, Bernanke urged lawmakers to come up with a credible plan to reduce the government's record-high budget deficits in the long run. But he said they shouldn't move now to slash spending or boost taxes in the near future.

    "I believe we should maintain our stimulus in the short term," Bernanke said as he spoke about the economy's challenges for the second straight day on Capitol Hill.

    Bernanke again said the Fed is prepared to take new steps to bolster the recovery if needed.

    "We are ready, and we will act" if the economy doesn't continue to improve, Bernanke told the House panel.

    But he refrained from repeating comments made earlier in the week, that he didn't anticipate the Fed taking new action in the near term. Those comments to the Senate Banking Committee sent stocks tumbling Wednesday. The market on Thursday recovered those losses after another strong batch of earnings revived optimism on Wall Street.

    Bernanke is under pressure to keep the recovery going because there's little appetite in Congress to provide a major new stimulus package.

    The Fed chief made his comments as the panel's highest-ranking Republican, Rep. Spencer Bachus of Alabama, and other Republican members complained about the effectiveness of President Barack Obama's $862 billion stimulus package. That has increased government spending and cut taxes at a time when most Republicans and some Democrats are worried about the government's exploding red ink.

    "The economic recovery is anemic at best," Bachus said, arguing that the stimulus package hasn't delivered.

    Bernanke also gave a nod to renewing tax cuts by President George W. Bush, which are set to expire at the end of this year. "In the short term, I would believe that we ought to maintain a reasonable degree of fiscal support -- stimulus -- for the economy. There are many ways to do that. This is one way," he said.

    The economy is slowing as consumers cut back spending under the strains of 9.5 percent unemployment, lackluster wage gains, sagging home values and chipped nest eggs.

    Businesses are wary of hiring and expanding because they are uncertain about the strength of their sales and the strength of the rebound. Some private economists fear the recovery could fizzle.

    If the recovery were to flash serious signs of backsliding, the Fed could revive programs to buy mortgage securities or government debt. It could cut to zero the interest rate paid to banks on money left at the Fed, although there are some technical difficulties raised by such a move, Bernanke said. The Fed also could create a new program to spark more lending to businesses and consumers in a bid to lure them to ratchet up spending and grow the economy.

    Rep. David Scott, D-Ga., complained about a lack of "aggressiveness" on the part of the Fed to tackle high unemployment. And, Rep. Gary Peters, D-Mich., wondered why the Fed wasn't taking new steps to stimulate the economy now.

    Despite growing threats to the recovery, Bernanke said the Fed continues to believe the economy will grow modestly this year and avoid sliding back into recession. Some disappointing economic data hasn't been bad enough for Fed policymakers to "radically change our outlook," he said.
  2. This is why I'm still bearish through all the big runups whenever there is a sliver of good news. If everyone else goes austerity and we don't, we lose our perfect credit rating, which will have devastating impacts.
  3. Secular bear markets last 15-16 years. Now begins the last third of the movie. Mortgage rates sub 5%. 30 year treasury sub 4%. Record debt levels across all countries. The ending is going to be wild.
  4. The party for America and western Europe is over.

    Get rid of these morons who just plan to extend your misery.

    Pound out and accept your beating and start rebuilding.
  5. So does that mean he puts his stamp of approval on what the Democrats are doing?

    I thought the Fed was apolitical.
  6. pspr


    Bernanke rolls with those in power at the time. I often wonder if he says something different to lawmakers and the president behind closed doors. I suspect not. It took him years before he could keep is voice from crackling during congressional questioning.