Posted on 08/27/2014 1:07:06 PM PDT by RckyRaCoCo
The world finally knows how former Federal Reserve Chairman Ben Bernanke views the 2008 financial crisis.
“September and October of 2008 was the worst financial crisis in global history, including the Great Depression,” said Bernanke in a document filed Aug. 22 with the U.S. Court of Federal Claims, reports The Wall Street Journal. Of the 13 “most important financial institutions in the United States, 12 were at risk of failure within a period of a week or two.”
(Excerpt) Read more at finance.yahoo.com ...
Thank Pelosi, Reid, and Barney Frank, it’s not just on Boosh’s shoulders.
People have tens of thousands of debt to “insulate” them from the severity of this economy.
Ask them how much is in the bank.
An article yesterday said 50% couldn’t come up with $400 for an emergency without borrowing money. And 50% couldn’t come up with $2000 for an emergency AT ALL.
Didn't they claim that the banks were too big to fail in the first place?
Bush wanted to go over Fannie and Freddie's books. Barney Frank opposed it and said that it contributed bad mojo.
You are SOOOO right about that. My grandparents came out of the Great Depression with a sincere appreciation for opportunity, hard work, family, faith, and solid values in general.
By contrast the people who came out of the 2008 crisis seem to be all about gimme, food stamps, welfare, disability, “free” healthcare, and angling to get their student loans forgiven.
My grandmother worked her way through the Depression as a dental assistant. She was the only one of 11 children who remained employed throughout. She and my grandfather did not marry until their 30’s because they could not afford to.
No one in their generation would have turned up their nose at an honest job.
I think he meant 2009.
I read somewhere that he studied the Great Depression throughout his whole career - creating scenarios on what he would do if he had the authority then that he had in 2008. I’m sure he believes this because he studied it so much - there is no possible way he could be wrong about it, it justifies everything.
The Great Recession would have been worse than the Great Depression if we had not bailed out the banks. The Great Depression didn’t get really horrendous until the banks failed.
The big crash was in 2008.
And the “expert” on the Great Depression managed to repeat the same mistakes. Maybe they were intentional. Maybe no one could be that stupid. Maybe.
I think Bernanke is full of crap. His premise is not even worthy of any serious discussion.
In part, you are correct, the 2008 crisis was predicated upon bad paper sold by fannie and freddie but it was not the entire problem. Some paper never made it through them.
The too big to fail label was put on more than just the banks: AIG, GE, GM and a host of other corps due to their wild lending practices joined the fray...AIG as they bet against a collapse with their Credit Default Swaps accepting unlimited liability with little equity.
I do not think this is a bush verses clinton verses Bush problem, it is one of wall street influence, money, upon our allegedly pure government system. Doing away with the separation of banking from investment banking was the last straw. Fueled by greed, the band played on while the Greenspans, Geitners and Bernakes sat around with their fingers up their respective backsides.
==>”Bernanke’s ‘humble brag’: 2008 crisis worse than Great Depression”<==
Was the 2008 “Great Political Correctness Financial Boondoggle” worse than the 1929 “Great Depression”?
Maybe, maybe not.
I don’t think the impact was as bad because the government was (and is) handing out money as fast as they can print it in an effort to minimize the impact.
But the 2008 collapse was avoidable because it was entirely created by the liberals in the federal government by forcing lending institutions to loan money to people that everyone knew could not, would not, pay it back.
Now we are moving to a world where people will perpetually rent. Is that better?
The American dream was once owning your own home.
The books were cooked and Barney stood in opposition to exposing it.
Need a big financial crisis to get people willing to adopt socialist “change”.
My grandfather lost his business and left the depression a broken man. The family survived because they had a small farm. My grandmother took in sewing, she had worked in one of the famous sweat shops long before. My mother’s parents got involved with the wrong side of the law so they survived too.
Vets demonstrated in DC for their promised WW1 bonus and were routed out. Picture that happening in 2009!
Basically the entire US industrial complex ground to a virtual halt. No Mr. Bernake, 2008 was no depression, thank God.
Agreed.
I'm sure they(and others)benefited with a few "backdoor sliders".
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