Posted on 03/02/2013 10:19:39 AM PST by haffast
Ben Bernanke, the chairman of the Federal Reserve, said on Friday that pulling back on aggressive policy measures too soon would pose a real risk of damaging a still-fragile recovery.
There has been some disagreement within the Fed of whether the central bank's bond-buying program, which is designed to push down long-term interest rates, should be phased out.
Fed Board Governor Jeremy Stein argued recently there were signs of overheating in certain financial markets and that the central bank should consider using monetary policy to address such risks if they persist.
The Fed chief was not convinced, saying that, even for the purposes of financial stability, a continuation of the central bank's aggressive stimulus, conducted through purchases of Treasury and mortgage securities, remains the optimal approach.
"Premature rate increases would carry a high risk of short-circuiting the recovery, possibly leading - ironically enough - to an even longer period of low long-term rates," Bernanke said.
snip
In response to the financial crisis and deep recession of 2007-2009, the Fed not only chopped official rates to effectively zero, but also bought more than $2.5 trillion in assets in an effort to keep long-term rates low.
snip
"We pay special attention to developments at the largest, most complex financial firms," Bernanke said.
He argued banks had gone some way toward repairing their balance sheets since the financial crisis. The Federal Deposit Insurance Corp. reported this week that bank profits rose in 2012 to their highest levels since 2006, the year before the subprime mortgage meltdown gained momentum.
(Excerpt) Read more at news.yahoo.com ...
99 cent bacon-egg-cheese biscuit now on special for $1.50, gas $3.76+ gal. in my area.
Benny sez: No pullback in the den of thieves, pooch not completely screwed yet.
Didn't have to pull off my shoes to figure that out.
What recovery?
Let me put a penny under the fuse so the lights will stay on.
Cheap money does not a recovery make. You think they’d notice, what with the lack of recovery amidst myriad quantitative easings. However, much like Marxists they can always push the inevitable hoped for result off into the unknown future.
This guy is either a total, cluelss putz, or he’s complicit in the destruction of our economy.
I’ll say it’s 50/50.
Had my first $50 fill up for my truck last week. That’s $100 a month that will NOT be going back into the economy in my little Cow Town. Not that I can afford what groceries cost these days, either...
Recovery of the "financial engineers" bonuses and ASSets.
So how are we to pay for a dozen years of continuing wars, foreign aid and nation building, paying for unemployment from unbalanced trade, health costs from an aging population, low birth rate and countless tax loopholes.
“I’ll say it’s 50/50.”
When you consider that there has not been a SINGLE QUARTER in 30 years with ANY GROWTH AT ALL, in fact it is NEGATIVE if you subtract Government Deficit Spending, and that 85% of ALL TRADES in the Stock Market are among between about 7 of TOO BIG TO FAIL BANKS trading with themselves. I would say it more like 100% he is complicit in the charade.
This goes for the vast majority of news outlets and pundits as well as ALL FINANCIAL REPORTERS. They are invested in keeping the Scam going as long as they can.
see market-ticker.org for the REAL FACTS of our economy.
A premature pullback by the Fed will prevent birth of unwanted twins named “Bankruptcy & Hyper-Inflation”.
If this is his definition of recovery I would hate to see what recession looks like. Ben’s love of printing money might be beneficial to his banking buddies but it hurts every American who saves money or buys their own food and gas. We will never recover with $4 a gallon gas.
“Let me issue and control a Nation’s money and I care not who makes the laws.” - Mayer Amschel Bauer or Rothschild or de Rothschild or whatever.
Bernanke isn’t dumb or he’d have never been put in the position he’s in. He knows exactly what the deal is. I wonder if 1% of the public know the truth behind the Fed? It’s like a giant, demonic leech.
As for the recovery, as long as Bernanke keeps creating money, nobody is going to invest in any kind of sustainable venture. We are all speculators even people who "hold" stocks (most companies are speculators). All funds are speculators. When the crack-up boom comes, the economy will appear to grow but mostly the Wall St and other large corporate bonuses will grow. The plebes will get nothing. Then we'll have another bust and another round of QE or worse. Each successive boom and bust will hollow out the economy and the middle class.
Bernanke, living at the intersection of Dumb and Evil streets.
Guns or butter? Let's see:
- Undermine and dismantle our military
- Sell our weapons to our enemies and let them nationbuild amongst themselves. A junkie wouldn't off their supplier would they?
- Dishonor our fathers and mothers who burdened themselves by fighting for and built this country through their work to then hand it over to the younger generation to withold healthcare to abort the old and lessen the "burden" on themselves. The young saw us abort them. Seems fair.
- Manipulate the monetary system to indirectly steal the wealth (their very life) of those who responsively sacrificed and worked for it - if they are too dumb to realize it, they're just steaks on the table for our benefit anyway. Survival of the fitest. They should have played when they had a chance.
- Let in the more biologicaly prolific Muslims and Latinos to raise birthrates, and if they become too many, they're easily incited to kill themselves off to a more manageable level. See how the Blacks have been managed?
- Elimate all tax loopholes, inversely progressively raise taxes to 100%. Loopholes = theft.
- Encourage the "Chosen" to clickety-click-click on their Al-Gore-Rhythms in their ivory towers and then tell the slaves to gather their own straw to make bricks for the "Chosen"
That should do it! Oh wait, that's what's happening. Never mind.
/s
Or we could pray. God is sorting it out anyway.
“What happens after the gig is up?”
All the talk about “the recovery” mostly seems to revolve around the stock market.
The simple fact is that when the US “prints money,” they’re not really “printing” anything, just increasing the values of some cells on spreadsheets. That newly printed “money” needs to go somewhere, since there’s nothing to put into a coffee can and bury in your back yard. So it goes into the stock market.
Since more and more newly printed money is coming into existence, this artificially increases the demand for stocks.
But once the US stops “printing money,” that artificial demand will dry up, and the stock market is going to crash as institutions try to dump the stocks they bought for reasons OTHER than what would normally be considered the “correct” reason to buy a stock.
Mark
But this is the choir here.
I think you left off another choice that has been taken - borrow - to fund wars with nation building and go broke. Sorry I opt for defending America only and putting a surtax on wars as needed to pay for them. If it's worth fighting for then it's worth paying for. Let's see - Nah, go broke, shop till you drop.
I will!
“Bernanke isn’t dumb or he’d have never been put in the position he’s in. He knows exactly what the deal is.”
Bernanke was put into his position by George W. Bush. Mr. Bush also made Henry Paulson, CEO of Goldman Sachs Secretary of the Treasury and delegated the management of the 2008 financial crisis to Bernanke, Paulson, and Timothy Geithner (Obama’s first Treasury Secretary). I wonder if George W. Bush knew what he was doing.
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