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Bernanke: I Am An Ass And A Looter

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http://market-ticker.org/akcs-www?post=167434

That's right, a looter.

And a ****ing mendacious liar too.

“Although economists have much to learn from this crisis....I think that calls for a radical reworking of the field go too far,” Bernanke said in a speech at Princeton University, where he was a professor for two decades.

Standard economic models, such as the “workhorse” new Keynesian model, did not predict the crisis. Bernanke himself initially said the subprime crisis wouldn’t spread throughout the broader economy.

That's because the New Keynesian model IS A FRAUD.

Got that? FRAUD.

SCAM.

LIE.

Why?

Because Keynes' theories required that the Treasury run a primary surplus and refill itself, paying off all its debt, during good times.

This has never, ever happened. Never.

Not once since The Fed was constituted in 1913.

Therefore, to base any economic "theorem" on this basis is a knowing, willful, intentional scam, a fraud upon the public, a pernicious scam that enables intentional acts of looting followed by "gun-up-nose" bailout demands.

It is a knowing scam because with foreknowledge over the space of nearly 100 years that government will not, now or ever, run that primary surplus, to provide "stimulus" as Keynes directs during downturns simply adds to structural imbalance that must come out of the people's hide in the form of destruction of their purchasing power.

It cannot be otherwise.

Three areas of research he recommended were human behavior in times of panic, the role of liquidity in markets and how asset bubbles are created and pop.

Another damned lie.

C'mon Bernanke, you douche. Let's play wayback.

.....

Now, with regard to that last one.

And that's not the only thing Denninger feels strongly about..... the feisty Midwesterner has nothing but scorn for the industry overall.

"I refused to take any stake in the acquiring firm. The shell game being played by these corporations is astounding," he said.

Denninger has also steadfastly avoided investing any of his personal fortune in the Internet: "I refuse to have anything to do with the Nasdaq 100. There will be a shake-out, and when it comes, it will be ugly and it will happen fast."

He might as well have been speaking of Black Week, April 10 through April 14, when the Nasdaq crashed.

The volatility of Net stocks in the past few weeks makes Denninger seem prescient, but his dislike for the unseemly marriage of breathless hype and dubious business plans is visceral.

"Amazon.com has proven there is a race to zero in margins. It should be a US$2 stock," he said.

It bottomed at $4.

**** you Bernanke.

Bernanke claims that "the models (and he) couldn't see it." Yet anyone who can read a chart saw it - the price is going from the bottom left to the upper right at dramatically greater acceleration rates than the broad economy. All of these instances sported P/Es ranging from the 20s to north of 60. AMZN had a P/E at the time north of 100.

Let me repeat the most-important line in that quote above for emphasis:

"I refused to take any stake in the acquiring firm. The shell game being played by these corporations is astounding," he said.

The Tech Bubble and wreck an accident? My ass.

VIRTUALLY EVERY SINGLE IPO FROM 1997 ONWARD WAS MAKING KNOWINGLY FRAUDULENT CLAIMS ABOUT INTERNET GROWTH AND THE POTENTIAL TRAJECTORY FORWARD.

How do I know? Because I was able to see the core of the network, as were thousands of others. I wasn't alone in knowing these were scams; everyone involved knew. They didn't give a damn. They stole trillions of investor dollars. They made off with the loot and you, the common man, got ass****d.

Worse, you can count the number of people who went to prison on the fingers of one hand, AND NOT ONE GOT NAILED FOR KNOWINGLY FALSE - MALICIOUSLY SO - SECURITIES SALES.

So they did it again.

This time in houses.

You know what happened. You could have a mortgage to buy a house as long as you were breathing. No income, no job, no assets. They even gave the loan a name - "NINJA." Bernanke knew this. He was the supervisor of the banks. He didn't give a ****. He knew damn well this crap was being securitized and sold off to people and that there was no way, on a long-term basis, these loans could be paid off. These loans were given ONLY on the back of rising prices - nothing more.

Prices that had to rise 12% or more a year to cover a once-a-year flip costs - 6% for the buy, 6% for the sell, by the Realtards. Maybe you're good and negotiate 1% off per side. Ok, the other 2% went to fees - fees that the banks got to keep, even if the paper was utter and complete CRAP.

Again, Bernanke didn't give a ****.

Again, the bubble inflated. This time in houses. Bernanke claimed in sworn testimony as late as 2006 that there was no bubble and that housing prices reflected "strong fundamentals."

BULL****!

Again the bubble popped. You know what happened. Millions of Americans lost their houses, millions lost jobs.

AGAIN, TRILLIONS IN WEALTH WERE VAPORIZED AND AGAIN THE BANKS KEPT ALL THE ILL-GOTTEN LOOT!

But this time, when the bubble popped, it popped a bit too early. The banks got stuck with some of their own crap. So Paulson and Bernanke went to Congress and threatened "Tanks in the streets" unless they got $700 billion. They rolled Congress to save their friends who not only should have gone bankrupt, many of them should have gone to prison!

But even that wasn't enough. We still had a problem, and the market and economy was still falling apart. So Geithner and Bernanke, really the same guy with two faces, went to Congress again and got them to force FASB to make accounting fraud legal. That's right - "make up a price for this asset and its ok on your balance sheet." They did it, and heh, the banks were saved (well, not really, but it looks like it.)

So again nobody goes to prison, the same people steal all the money, and Bernanke claims - again - that he couldn't see it coming - even though he was the guy supervising it all!

What's worse is that all the crap that was shoved in the box - trillions of it - is still out there, much of it off balance sheet! Essentially every major bank has hundreds of billions of dollars of who-knows-what stashed where nobody can see or value it, exactly as ENRON did, and a couple of them have over one trillion in off-sheet exposure - more than enough to blow their capital to hell several times over if the valuations are not accurate. Yet we can't see, we can't examine, and we can't know.

If I can see this without having a PhD from Princeton, either Bernanke is a ****ing idiot who bought his degree and has an IQ smaller than my kid's soccer shoe size or he's a damned liar and has been intentionally misleading the American Public along with Congress for more than a decade.

Pick one!

Ok, so there's history. None of which Bernanke claims he could "see" with his much-vaunted "models", remember?

What do you think the banks are doing now, having gotten away with all-but-murder (and maybe some of that too) with not one but two full sets of scams in the last decade?

Why they're doing it again.

I'm still amazed Denniger hasn't exploded.

Still at least we've got Bernanke in charge with his wonderful future predicting mathematical models...

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http://market-ticker...www?post=167434

I'm still amazed Denniger hasn't exploded.

Still at least we've got Bernanke in charge with his wonderful future predicting mathematical models...

Keynes was an Occultist from the "Darkside"

He crashed the German economy with his policies set in place for reparations at Versailles - the roots of Nazism appearing.

He was in the USA when the Great Crash occured in New York!

He had massive involvement in setting up (44 allied Nations gathered)

United Nations

IMF

World Bank Group - all at Bretton Woods!

"The Bretton Woods Conference led to the establishment of the IMF and the IBRD (now the World Bank), which still remain powerful forces in the world economy. As mentioned, a major point of common ground at the Conference was the goal to avoid a recurrence of the closed markets and economic warfare that had characterized the 1930s.

Thus, negotiators at Bretton Woods also agreed that there was a need for an institutional forum for international cooperation on monetary matters. Already in 1944 the British economist John Maynard Keynes emphasized "the importance of rule-based regimes to stabilize business expectations"—something he accepted in the Bretton Woods system of fixed exchange rates.

"One of the reasons Bretton Woods worked was that the US was clearly the most powerful country at the table and so ultimately was able to impose its will on the others, including an often-dismayed Britain.

At the time, one senior official at the Bank of England described the deal reached at Bretton Woods as "the greatest blow to Britain next to the war", largely because it underlined the way in which financial power had moved from the UK to the US."

This is interesting - remind you of anything?

Thank you Labour & "Gordo - The destroyer"

"Irving Fisher argued that the predominant factor leading to the Great Depression was over-indebtedness and deflation. Fisher tied loose credit to over-indebtedness, which fueled speculation and asset bubbles. He then outlined 9 factors interacting with one another under conditions of debt and deflation to create the mechanics of boom to bust. The chain of events proceeded as follows:

  1. Debt liquidation and distress selling
  2. Contraction of the money supply as bank loans are paid off
  3. A fall in the level of asset prices
  4. A still greater fall in the net worths of business, precipitating bankruptcies
  5. A fall in profits
  6. A reduction in output, in trade and in employment.
  7. Pessimism and loss of confidence
  8. Hoarding of money
  9. A fall in nominal interest rates and a rise in deflation adjusted interest rates.

During the Crash of 1929 preceding the Great Depression, margin requirements were only 10%. Brokerage firms, in other words, would lend $9 for every $1 an investor had deposited.

When the market fell, brokers called in these loans, which could not be paid back. Banks began to fail as debtors defaulted on debt and depositors attempted to withdraw their deposits en masse, triggering multiple bank runs.

Government guarantees and Federal Reserve banking regulations to prevent such panics were ineffective or not used. Bank failures led to the loss of billions of dollars in assets."

"Monetarists, including Milton Friedman and current Federal Reserve System chairman Ben Bernanke, argue that the Great Depression was mainly caused by monetary contraction, the consequence of poor policymaking by the American Federal Reserve System and continued crisis in the banking system"

Edited by erranta

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The first leg down was the Stock Crash.

The second leg came as the banks went bust, one after another. It was tough (impossible) to maintain the money supply, when the "organs of circulation" (the banks) were removed from the economy. People were afraid of losing their money in banks, so they took it out, and sat on cash. With prices crashing all around them, money was gaining value, so why not hold it as cash?

BB has prevented this - so far. But people are afraid, and losing their will to spend. Many are frightened of their high debts, and are preferring to pay them down, rather than increase them. The outstanding "exception to the rule", are governments which are building debts, many (like the US) at a furious pace. But many people are angry about that, because they realise that those higher debts will bring higher taxes. If government slows its borrowing and spending, then the economy will truly implode.

I think you'll find that banks were bailed out in 1930's too.

It was when they allowed a few to go that the depression began to end...aided of course by massive sales of arms to UK.

Quite why Britain was "dismayed" at the antics at Bretton Woods, I am quite sure I see Politicians logic at work here...If THEY decouple from gold, then WE have to or WE will be voted out.

Surely, the correct thing to do is NOT copy the borrower.

I mean...many have borrowed to the hilt to "keep up appearances with the Joneses"...the X5, the exotic holidays, everything. does that mean that those that saved were wrong?

no...but it means that everyone else is asked to bail the wrongdoers....and even THAT is a political choice...Kick the Can is rife..and is the way of Democracies....now...and then...

So The calls for ALL to be synchronised has a certain logic...all stimulate, all buy each others goods...the problem is that we already are awash with goods, debt and services....and US makers can make the same things as we do....THEY dont need us and WE dont need them....for most things...so a silly stimulus is just going to go to waste.

best to hand out money to Bangladesh and other places that would need our stuff.

but that is the route to chaos...and bangladesh cant repay the loans...

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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