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Bernanke's In BIG TROUBLE and So Are the Markets
Bernanke will be in MAJOR political trouble and very likely LEGAL trouble in short order.
I warned earlier that this would be the case as soon as Lloyd Blankfein hired a defense attorney. Do you really think a Wall Street CEO is going to go to jail when he can roll back everything onto the Fed (just as Ken Lewis did)? All Blankfein or any other future Wall Street CEO recipient of a major lawsuit (and there will be much more) has to argue is that the Fed forced them to make an illegal move to save the financial system and the attention turns to the Fed, specifically Bernanke.
We’ve already had a taste of this when Ken Lewis, formerly of Bank of America tried to pin the Merrill/ Countrywide mergers on Bernanke. The ONLY reason Bernake got out of that one was because politically he was still considered the savior of the Financial System. Kicking Bernanke down would have imploded the markets as, at that time, he was the figurehead for the “Fed will backstop the entire financial system” mantra.
That has now changed and Bernanke is now political plutonium. No one, not even Obama, will be backing him up. The big issue for the 2012 election will be the Fed and the economy. And both the politicians and Wall Street will be hanging the albatross of failure and corruption on Bernanke.
You can already see the Fed starting to prepare for this. Note that the Fed is now suing its favorite firm, Goldman Sachs. This move is not without context. Bernanke and pals are aware of the political tide turning in the US. They’re also aware of what’s happening in Greece and Europe. And they’re going to try to pin the blame on Goldman and others.
So what can we deduce from this?
1) The Fed/ Wall Street relationship is deteriorating (at least the personal relationships between the firms and Bernanke).
2) The political environment in the US is changing dramatically.
3) Bernanke is political poison.
4) Wall Street will be facing many more lawsuits.
5) The primary issues of the 2012 election will be Bernanke, the Fed, Wall Street (note Obama’s recent attack on this crowd despite them getting him in office), and the economy.
In plain terms, the political environment of the last three years has done a complete 180. None of these developments will be market positive. And the likelihood of QE 3 coming at all is diminishing by the day.
Indeed, I fully believe we are about to enter into the next leg down for this Crisis. The financial system is on DEFCON Red Alert (no matter what stocks are doing). And smart investors are taking steps to prepare themselves and their portfolios NOW while the markets are still holing up.
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Good Investing!
Graham Summers
PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.
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The Bernake behind bars? Fantasy. But hey, who knows.
"And the likelihood of QE 3 coming at all is diminishing by the day."
Is there a way that I can short you?
Graham, I heard Ben Bernanke is also responsible for starving babies all over America and for starting Hurriance Irene too!
Bernanke = Scapegoat
And now the Twister...instead of QE3...pure semantics
Precisely GS and Bernank have to let the markets tank.. to be viwed as savior with the pols and public begging for qe.
The Gooberment suing the Banks makes it even more so.
somebudy set us up the bomb
.
http://www.youtube.com/watch?v=qItugh-fFgg
.
all your base are belong to us
bread and circuses - move along nothing to see here
No more bullets for the Bernank, no more bullets for Tiny Tim...Chess mate
In other words, it's time for Arkancide ver 2.0
Let's Put Bernanke in the tank so he gets a shank in the flank!
You could not be more wrong on the following:
1) The Fed/ Wall Street relationship is deteriorating (at least the personal relationships between the firms and Bernanke).
2) The political environment in the US is changing dramatically.
3) Bernanke is political poison.
1. Seriously? You truly believe this?
2. Seriously? The average American is mad, but couldn't draw a supply/demand curve is his life depended on it. The average American thinks the Federal budget can be balanced without touching Social Security.
3. Seriously? The average American doesn't know who the vice-President is, let alone Ben Bernanke.
You, sir, are guilty of some extreme wishful thinking...
Justice, Bitchez! Now we know the end of days has arrived!
Um, "holing up"? Goddamn, if you're going to keep spamming ZH with this worthless pap at least read what you post before submitting it.