Posted on 06/26/2009 6:08:53 PM PDT by fiscon1
Fed Chairman Bernanke is up for reappointment next year, and the questions are beginning in earnest about how he’s handled monetary policy. Some of the best-informed people out there insist that the cause of the housing bubble and the subsequent crash was an episode of low interest rates during 2003 and 2004, as the U.S. economy was recovering from the post-9/11 recession. Alan Greenspan was the Fed Chairman at that time, but Bernanke was prominent among the Fed’s governors, and fully supported the loose policy.
(Excerpt) Read more at commentarymagazine.com ...
N o .. Schumer started it by outing “a big financial institution was going to fall” ... investors pulled tons of money from the market, the fed stepped in but saw the botomless pit and said “F*** it”, stopped pumping money in and ... welll ... thast’s all she wrote.
Bingo! I also give Obergruppenfuhrer Schumer the majority of the credit for getting the “worst economic crisis since the Great Depression” ball rolling.
I think the word is “triggered” rather than caused. Shumer probably pulled that trigger while Bernanke et al were stoking the fires in the train as it went over the cliff.
I can remember Greenspan saying over and over thaqt we could NEVER have anything similar to what occurred during the depression. So much for that line of cr**.
I would love to hear the whole story on what happened that day. Half of a $Trillion is a ton of money, and it was pulled out of the money markets in TWO HOURS. We will probably never know.
That’s how I remember it.
A while back some newbie troll tried to call this a nuclear strike on the markets. I said they only had to close the windows to stop it. He went nuts and started drooling at the mouth about how I was a Bush-hater.
They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn't be further panic. And that's what actually happened
Now I see they did exactly what I had said they should do. So newbie, if you're still out there-- eat my shorts, junior.
Something happened, that’s for sure!
Now was it deliberate? Well, I do question the timing.
Obama seemed cool as a cucumber at the time. It seemed weird.
Bernanke did not have anything to do with what happened as it was already in motion when he took over, and how he has handled it is better than Greenspan could have done. The low interest rates did not cause this crash, although easy credit did help the poor unable to afford a mortgage to get one. The pressure was on banks to loan by the far left, and if the government would have had to subsidize those loans to make it happen they would have...they did in late 1970’s when interest rates were 17% for a mortgage. The printing of money is a result of China not loaning as much, but borrowing is the Administration’s fault.
This crisis has been almost 30 yrs in making, and has been a calculated conspiracy to destroy capitalism. It took some doing but the SDS, along with other marxists throughout the world in banking, politics, education and other positions of influence have planned the death of capitalism for decades. It goes back farther, even to the 1917 donation of millions to Columbia University to start the Lincoln Progressive School to create an education program for public schools that predisposes students to marxism and prepares Americans for the Administration we have today...”the voters to vote for such a change”.
All of the events that lead up to the need for such a change...are part of the plan. Some of this came through Carter, Clinton and Bush Administrations....when listed chronologically you can see the thread of the conspiracy down through the years. Even the CEO of Lehman Brothers turning down an offer to be purchased a week before they collapsed. He also turned down same offer Warren Buffet gave to Goldman Sachs, which saved them. It was getting closer to election and “just one more bank going down like Lehman” made the election a sure thing for Obama.
So many places to place the blame, but it’s not Bernanke, although we don’t like what he is doing. Bernanke is a puppet on a string reacting (occasionally proactive) with the cards being dealt in the economy by others. The FDIC is a problem, but it’s what’s going on behind the scenes that is causing it, and who really controls it... Bernanke is just an educated guy trying to do the job he’s told to do. Here are just a few of the things on the list from the past:
The SDS determined that the working class Karl Marx talked about would not be the blue collar workers in America, as it has been in Russia, as they could not be turned easily to communism and against USA, but the majority of new workers in future would be college educated due to the level of affluence and opportunities this country offered, so it was college level professionals they needed to transform to their way of thinking in order to take over and remove capitalism.
Think about how this went down over a thirty year period...
1. Carter Admin-Community Reinvestment ACT
Clinton signs repeal of Glass-Steagel ACT, and Gramm Bailey ???ACt is born.
Regulations removed to promote lending by allowing 6 banks to lend 40-1 instead of usual 12-1 in 2004.
Congress ignores Bush and Snow warnings about Freddie and Fannie loans, and their financial instability..Barney Frank, Raines, Dodd, Schumer and others insist on low interest loans to poor and that Freddie and Fannie are fine.
2. Pretense of helping poor get a home, “entitlement” by ACLU and ACORN pushing for more and more loans as other organizations pressure banks to lend money to those unable to pay. Easy loans by banks, mortgage companies, as protestors picketed bank mgrs and Freddie Mac and Fannie May guarantee risky bank and mortgage company loans where jobs and income not verified.
3. AIG comes up with CDS, which is insurance on bets called derivitives. Short selling, naked short selling is not reigned in by regulators and SEC. The uptick rule and mark to market are changed at some point.
4. Black and Sholes create a formula to develop investments like sub prime mortgages into complicated investment tranches and divisions, which the banks could not unravel or sell when crisis hit. Sholes got a “Nobel Peace Prize” for that formula. All banks were using that formula of huge systemic risk when they failed. “Who were people in banks buying and selling CAPM investments around the world?”
5. AIG cannot pay the insurance for bets between banks called a CDS, and ..our taxpayer dollars that went to overseas banks were to pay that insurance to cover those bets. Since when are we gamblers with taxpayer dollars. Yet we keep pumping money into AIG.
6. Not only do we bailout the banks, car companies, and insurance companies, but we spend over 780 billion (which had to be printed) for projects that do not create the jobs promised by O Admin....
7. All of this debt and printing money has created “A DOLLAR CRISIS”, whereby newropeans and China are calling for the “world currency” which is the dollar to be changed. Our value in our currency (not backed by gold and what gold is left in USA< which noone in Congress will audit at Fort Knox)is it’s use as a world currency, and when that changes our inflation goes sky high.
Finally, the fake persona put on our economy by this Administration is propaganda, and we will wake up someday in next two years with a country we don’t recognize anymore.
Will we be Argentina? Or will we be Zimbabwe? or both??
Thanx, kat.
and as a P.S. ..... I can’t prove it, but I think Cahtah’s CRA in ‘77 was paving the way for his Habitat for Humanity program for when he got out.
Bernanke Threatens Economic Collapse If Fed Audited
http://www.freerepublic.com/focus/f-news/2280097/posts
Source
http://www.prisonplanet.com/bernanke-threatens-economic-collapse-if-fed-audited.html
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