Friday, Aug 07, 2009

Blind Ben Bernanke Video

YouTube: Bernanke: Why are we still listening to this guy?

July 2005 1min into video...INTERVIEWER: Tell me, what is the worst-case scenario? Sir, we have so many economists coming on our air and saying, "Oh, this is a [housing] bubble, and it's going to burst, and this is going to be a real issue for the economy." Some say it could even cause a recession at some point. What is the worst-case scenario, if in fact we were to see prices come down substantially across the country? BERNANKE: Well, I guess I don't buy your premise. It's a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. So what I think is more likely is that house prices will slow, maybe stabilize: might slow consumption spending a bit. I don't think it's going to drive the economy too far from its full employment path, though.

Posted by mountain goat @ 11:02 AM (974 views) Add Comment

10 Comments

1. japanese uncle said...

If it's really due to his incompetence (though doubtful), class action must be brought against this man, seeking billions of compensation on account of gross negligence and breach of fiduciary duty. If it was deliberate he must be subject to life imprisonment.

Friday, August 7, 2009 11:27AM Report Comment
 

2. mountain goat said...

This guy and the rest of our financial authorities don't have a clue. This recent stocks rally has me really scared. I mean food-stock-piling-scared again. Ron Paul and other Congressmen calls for the Fed to be audited will probably prevent any further additions to the $Trillions in toxic mortgage debt on the Fed's books. So when the next scare happens (soon) the Fed will have it's hands tied and the bank runs will commence. By the way to all you gold bugs I have to confess to abandoning the cause. I sold most of my BullionVault and GoldMoney gold into dollars yesterday. Now holding cash in an independent safety deposit box in GBP notes and dollars and am short SP500 and Euro STOXX50 with my gambling money. Not selling my coins or closing those gold accounts because they will come in handy when the deflationary crash gets near it's end. But for now I believe gold, silver and GBP are going down in a 3rd wave deflationary crash that will make 2008 look like a warm up round one.

Apologies if you think this sounds like a paniced rant of a lunatic. It probably is! Just saying what I think and been up to the past few days. Third waves have a habit of catching everyone by surprise so be prepared. Green shoots...bah!

Hope you enjoy the video and have a good weekend, I'm off kayaking around Anglessey.

Friday, August 7, 2009 11:36AM Report Comment
 

3. paul said...

You could say the same of Mervyn King and the MPC - as with Bernanke.

The Bank of England did not see it coming because they were not looking. And now they appear to be throwing walls of taxpayer money at falling house prices until the problem goes away.

Friday, August 7, 2009 11:43AM Report Comment
 

4. 51ck-6-51x said...

MG said, "Third waves have a habit of catching everyone by surprise"
- Sounds like sound advice to me, have fun on the water.

Friday, August 7, 2009 11:57AM Report Comment
 

5. techieman said...

I am really bemused by this. First of all he has to be bullish doesnt he! So based on that premise you would always take what these folks say with a pinch of salt. Now whever he believes it himself or not is a different issue. If he does then thats a bit scary!!!

Friday, August 7, 2009 12:31PM Report Comment
 

6. techieman said...

so will todays employment numbers be a reality check for the markets and usher in a correction to the upmove, with one more bear squeeze after that or will the market take it in its stride - or possibly the numbers will be better than expected?

Friday, August 7, 2009 12:34PM Report Comment
 

7. quiet guy said...

@mountain goat

"independent safety deposit box"

You might find this interesting:

http://nestmannblog.sovereignsociety.com/2008/06/is-your-safety.html

and the follow up story:

http://nestmannblog.sovereignsociety.com/2009/07/your-safe-deposit-box-is-a-crime-scene-even-if-theres-no-crime.html

Be careful and have fun kayaking!

Friday, August 7, 2009 12:51PM Report Comment
 

8. icarus said...

JU @1 - Invoking the law against these guys is difficult because they've rigged the justice system. See

http://www.counterpunch.org/martens08032009.html

Friday, August 7, 2009 01:34PM Report Comment
 

9. dbc reed said...

Why has nobody sued the issuers for all these bonds and derivatives based on dodgy U.S. property values, which despite triple A ratings turned out to be valueless? At the very least the UK government should n't be so matey with the Americans and their dire business practices. British institutions did not buy into these things on the understanding that there was so much risk.

Friday, August 7, 2009 02:12PM Report Comment
 

10. icarus said...

dbc reed @9 - the answer may be @8

Friday, August 7, 2009 02:49PM Report Comment
 

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