Ben Bernanke Wants Out

Forbes ^ | 04.14.09 | Carl Gutierrez

[nickcarraway]

Federal Reserve chairman Ben Bernanke is seeing "tentative signs" of economic improvement, which makes it time for the central bank to begin talking about its exit strategy.

In a talk at Morehouse College, Bernanke summarized much of his own recent commentary and insisted that he remains optimistic despite the Fed's March downward revision of GDP forecasts and expectation that unemployment will rise into 2010.

"Recently we have seen some signs that the sharp decline in economic activity may be slowing," Bernanke said.

Bernanke's speech comes on the front-end of a week filled with speeches from various Federal Reserve presidents, as well as another by Bernanke on Friday, followed by vice chairman Donald Kohn on Saturday.

"I think they're going to continue to focus on its efforts to stabilize the financial system," said Michael Feroli, senior economist at JPMorgan Chase. "I also expect them to defend the Fed's actions thus far, and to talk more about exit strategies."

And talk they should. In light of Bernanke's commentary, any absence of further discussion of a recovery from Fed officials would appear odd, as well as any corresponding exploration in respect to exit strategies. Feroli hopes that officials will discuss how they're preparing for the possible inflationary consequences of the Fed's recent stimulus.

For his part, Bernanke discussed the central bank's struggle over price stability, and the issue will surely be retold by the bevy of other speeches from various Federal Reserve Bank presidents later this week. At least in Bernanke's case, he's confident in the Fed's ability to deal with inflation later whilekeeping interest rates at essentially zero due to economic weakness in the United States, and the rest of the world, in the medium-term.

[benjibrowder]

Bullcrap, he knows where this is all going and wants to get as far away from it as possible.

[bmwcyle]

I guess Ben is Pitch Fork Phobic.

[Attention Surplus Disorder]

From the guy who couldn’t see it coming, this is his take on it disappearing.

[Tijeras_Slim]

Good, I want him out too.

[Thermalseeker]

Bullcrap, he knows where this is all going and wants to get as far away from it as possible.

Yep, even 'ol helicopter Ben realizes that all the money they've been printing, plus the inevitable interest rate increases that are coming, spell big time inflation on the horizon. He's wanting a personal exit strategy, first and foremost.....

[FromLori]

Will he be taking his helicopter to the stashed funds in overseas banks?

[alecqss]

Is Geithner still alone at the Treasury?... Poor Obama, nobody wants in, more and more want out.

[lainie]

Bernanke noted that the liquidity the Fed has injected could begin to pose an inflationary threat unless the Federal Open Market Committee pares it down and raises interest rates. Bernanke's offered very general details though, saying it would take such measures "at the appropriate time".

Uh Huh.

[RSmithOpt]

BINGO!!!

[mulligan]

That would make little difference. He, in fact, has never been in. He never did show up. He has been out (in left field) since the beginning.

[jamaksin]

Doesn't Ben know that they are not hiring at South of the Border these days.

But, maybe something will open up for him in Dillon, Fork, or even Mullins.

Dei Sub Numine Viget

[Will88]

Misleading headline? I think Ben only meant that the Fed should stop injecting more liquidity into the economy, not that he personally wanted to leave the Fed.

[Liz]

Will Bernanke be taking his helicopter to the stashed funds in overseas banks?

Americans have not yet learned the full extent of official corruption, thievery, schemes and scams involving $BILLIONS of tax dollars aided and abetted by the dupes on Capitol Hill. Here's a sap-happy trio of greedsters, salivating to divvy up the taxpayers' billions.

Bernanke, his predecessor Paulson, and J Ezra Merkin.

As GMAC Chair Merkin got a $6 billion bailout.

MERKIN'S CAYMAN ISLAND HEDGE FUND While he was GMAC chairman, J Ezra Merkin ran hedge funds as a sideline and was feeding funds into Madoff's Ponzi operation (and pocketing hundreds of $millions in fees).

Merkin's name is connected to 1) Ariel Fund, based in the Cayman Islands (an infamous money laundering haven--a partnership between Merkin and London's Fortis Bank), (2) Ascot Partners, (3) general partner of Gabriel Capital LP, a $5 billion family of hedge funds, and, (4) managing partner of Gotham Capital.

NOTE Some of Madoff’s loot was found in Gibraltar. Merkin owns a bank in Israel. Fly in---go to a bank with a suitcase full of cash and nobody asks where you got it or if taxes were paid on it.

[BfloGuy]

Sigh. Evidence from almost every comment that virtually no one bothered to read the article. Bernanke's not talking about quitting, merely speculating on when the Fed should begin withdrawing the liquidity (newly-printed dollars) that it has injected into the economy.

I can only imagine the skewed view of the world held by Freepers who can't be bothered to read anything more than headlines.