Rep. Grayson Stumps Bernanke

2 responses to “Rep. Grayson Stumps Bernanke”

1. theyields | July 25, 2009 at 8:58 am | Reply

   The article: Ben “Systemic Risk” Bernanke proves that Bernanke knowingly maintained a strict monetary policy long after he knew of the sub prime problem as he knew it would cause of the “Depression”.

   It shows that he probably engineered it on purpose!

   If you want to sleep tonight, Don’t Read It!

   “In contradiction to the prevalent view of the time, that money and monetary policy played at most a purely passive role in the Depression, Friedman and Schwartz argued that “the [economic] contraction is in fact a tragic testimonial to the importance of monetary forces” (Friedman and Schwartz, 1963, p. 300).
   …..

   The slowdown in economic activity, together with high interest rates, was in all likelihood the most important source of the stock market crash that followed in October.

   In other words, the market crash, rather than being the cause of the Depression, as popular legend has it, was in fact largely the result of an economic slowdown and the inappropriate monetary policies that preceded it.

   Of course, the stock market crash only worsened the economic situation, hurting consumer and business confidence and contributing to a still deeper downturn in 1930.”

   Governor Ben S. Bernanke
   Money, Gold, and the Great Depression.
   At the H. Parker Willis Lecture in Economic Policy, Washington and Lee University,
   Lexington, Virginia.
   March 2nd, 2004

   You can read also: Preparing for the Crash, The Age of Turbulence Update: 22/07/09., which tries to accomplish Greenspan Mission Impossible:

   “Much as we might wish otherwise, policy-makers cannot reliably anticipate financial or economic shocks or the consequences of economic imbalances. Financial crises are characterised by discontinuous breaks in market pricing the timing of which by definition must be unanticipated – if people see them coming, then the markets arbitrage them away.

   …..

   That is mission impossible. Indeed, the international financial community has made numerous efforts in recent years to establish such oversight, but none prevented or ameliorated the crisis that began last summer. Much as we might wish otherwise, policy makers cannot reliably anticipate financial or economic shocks or the consequences of economic imbalances. Financial crises are characterised by discontinuous breaks in market pricing the timing of which by definition must be unanticipated – if people see them coming, then the markets arbitrage them away.”

   Alan Greenspan
   The Age of Turbulence: Adventures in a New World [Economic Order?].

   Plea for a New World Economic Order. explains the nature and causes of economic depressions and proposes a plausible alternative solution.

   LikeLike

2. Jubilee Year | July 24, 2009 at 6:09 pm | Reply

   I too saw this and agree, it made Big B look pretty bad. However…

   I think the negativity about the credit swaps was a bit misleading. If I understand them, they are much like the money plan you advocate. It is not money taken from US savings or taxes, it is simply credit money created to facilitate trade.

   What are your thoughts on this matter? Are the swaps truly free credit, or are they some form of debt financing?

   LikeLike

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