This page has been archived and commenting is disabled.

Bernanke Laments Lack Of Housing Bubble, Demands More From Tapped Out Households

Tyler Durden's picture




 

Moments ago Ben Bernanke released a speech titled "Challenges in Housing and Mortgage Markets" in which he said that while the US housing revival faces significant obstacles, the Fed will do everything it can to back the "housing recovery" (supposedly on top of the $40 billion in MBS it monetizes each month, and/or QEternity+1?). He then goes on to say that tight lenders may be thwarting the recovery, and is concerned about high unemployment, things that should be prevented as housing is a "powerful headwind to the recovery." In other words - the same canned gibberish he has been showering upon those stupid and naive enough to listen and/or believe him, because once the current downtrend in the market is confirmed to be a long-term decline, the 4th dead cat bounce in housing will end. But perhaps what is most amusing is that the Fed is now accusing none other than the US household for not doing their patriotic duty to reflate the peak bubble. To wit: "The Federal Reserve will continue to do what we can to support the housing recovery, both through our monetary policy and our regulatory and supervisory actions. But, as I have discussed, not all of the responsibility lies with the government; households, the financial services industry, and those in the nonprofit sector must play their part as well." So "get to work, Mr. Household: Benny and the Inkjets, not to mention Chuck Schumer's careers rest on your bubble-reflation skills."

Bernanke word cloud:

And Full speech:

Challenges in Housing and Mortgage Markets

Good afternoon. I'd like to thank John Bryant and Operation HOPE for inviting me to speak today. I'd also like to congratulate Operation HOPE and the Ebenezer Baptist Church on the grand opening of the HOPE Financial Dignity Center, which holds the promise of becoming a tremendous resource for the people of Atlanta and sits next to Martin Luther King's home church. Dr. King's legacy to our society is strong and enduring, and the new center is very much in the spirit of his work.

The past few years have been difficult for many Americans and their communities. At the Federal Reserve, we understand the depth of the problem and the need for action, and we will continue to use the policy tools that we have to help support economic recovery. We also know that the burdens of a weak economy and the benefits of economic growth often are not equally shared, and that, to be truly effective, policymakers must take into account how their decisions affect the least advantaged, not just the economy as a whole.

My remarks today will focus on an important part of our economy, the housing sector. Housing and housing finance played a central role in touching off the financial crisis and the associated recession, and the ensuing wave of foreclosures wreaked great damage on communities across the country. As I will discuss, for the first time in a number of years, the housing sector is improving, adding to growth and jobs. But the housing revival still faces significant obstacles, and the benefits of that revival remain quite uneven. Strengthening and broadening the housing recovery remain a critical challenge for policymakers, lenders, and community leaders. The degree to which that challenge is met will help determine the strength and sustainability of the economic recovery and the extent to which its benefits are broadly felt.

Developments in Housing and Housing Finance
The multiyear boom and bust in housing prices of the past decade, together with the sharp increase in mortgage delinquencies and defaults that followed, were among the principal causes of the financial crisis and the ensuing deep recession--a recession that cost some 8 million jobs. And continued weakness in housing--reflected in falling prices, low rates of new construction, and historic levels of foreclosure--has proved a powerful headwind to recovery. It is encouraging, therefore, that we are seeing signs of improvement in the housing market in most parts of the country. House prices nationally have increased for nine consecutive months, residential investment has risen about 15 percent from its low point, and sales of both new and existing homes have edged up.1 Homebuilder sentiment has improved considerably over the past year, and real estate agents report a substantial rise in homebuyer traffic. The growing demand for homes has been underpinned by record levels of affordability, the result of historically low mortgage rates and house prices that are 30 percent or more below their peaks in many areas.

To be sure, the housing sector is far from being out of the woods. Construction activity, sales, and prices remain much lower than they were before the crisis. About 20 percent of mortgage borrowers remain underwater--that is, they owe more than their homes are worth. Despite marked improvements in overall credit quality, 7 percent of mortgages are either more than 90 days overdue or in the process of foreclosure.2 And, although the number of homes in foreclosure has edged down since cresting in 2010, that number remains in excess of 2 million, three times the historical norm. Meanwhile, the national homeownership rate has slipped nearly 4 percentage points from its 2004 high of 69 percent, and it now stands at a 15-year low.3 So, although there are good reasons to be encouraged by the recent direction of the housing market, we should not be satisfied with the progress we have seen so far.

Lower-income and minority communities are often disproportionately affected by problems in the national economy, and the effects of the housing bust have followed that unfortunate pattern. Indeed, as a result of the crisis, most or all of the hard-won gains in homeownership made by low-income and minority communities in the past 15 years or so have been reversed. For example, among all income groups, between 2007 and 2010, homeownership rates fell the most for households with income of $20,000 or less, according to the Federal Reserve's Survey of Consumer Finances.4 Data from the Census Bureau show that, over the period from 2004 to 2012, the homeownership rate fell about 5 percentage points for African Americans, compared with about 2 percentage points for other groups.5 

Homeownership rates fall when existing homeowners lose or leave their properties, when barriers to homeownership increase, or both. In recent years, both factors have been important. As I mentioned, home loss through foreclosure, though down from its peaks, remains an important problem, with lower-income and minority homeowners often being the hardest hit. Importantly, foreclosures can inflict economic damage beyond the personal suffering and dislocation that accompany them. Foreclosed properties that sit vacant for months (or years) often deteriorate from neglect, adversely affecting not only the value of the individual property but the values of nearby homes as well. Concentrations of foreclosures have been shown to do serious damage to neighborhoods and communities, reducing tax bases and leading to increased vandalism and crime. Thus, the overall effect of the foreclosure wave, especially when concentrated in lower-income and minority areas, is broader than its effects on individual homeowners. A strengthening housing market will help to gradually undo that damage, but the process has only begun.

Homeownership rates have also declined because fewer households have chosen, or have been able, to become new homeowners in recent years. Buying a home usually means obtaining a mortgage, and the data show that the pace of mortgage lending has fallen considerably on a national basis; the extension of first-lien mortgages to purchase homes fell by more than half from 2006 to 2011 and now stands at the lowest level since 1995.6 Again, the contraction in mortgage originations has been particularly severe for minority groups and those with lower incomes: Since the peak in mortgage lending in 2006, the number of home-purchase loans extended to African Americans and Hispanics has fallen more than 65 percent, whereas lending to non-Hispanic whites has fallen less than 50 percent. Home-purchase originations in lower-income neighborhoods have fallen about 75 percent, compared with around 50 percent for middle- and upper-income neighborhoods.

To be clear, the reduction in mortgage originations and home purchases for all groups relative to the pre-crisis period partly reflects weakness in the effective demand for housing rather than the unavailability of mortgage credit. Unemployment, income loss, and income insecurity prevent many households from purchasing homes, and concerns about the future direction of the labor market, housing prices, and the economy more generally keep other potential buyers on the sidelines. In addition, the fall in home prices means that many current homeowners cannot rely as much as they could in the past on tapping their existing home equity to trade up to larger or better homes, while underwater homeowners may be financially unable to move from their current homes.

Although the decline in the number of willing and qualified potential homebuyers explains some of the contraction in mortgage lending of the past few years, I believe that tight credit nevertheless remains an important factor as well. The Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices indicates that lenders began tightening mortgage credit standards in 2007 and have not significantly eased standards since.7 Terms and standards have tightened most for borrowers with lower credit scores and with less money available for a down payment. For example, in April nearly 60 percent of lenders reported that they would be much less likely, relative to 2006, to originate a conforming home-purchase mortgage to a borrower with a 10 percent down payment and a credit score of 620--a traditional marker for those with weaker credit histories.8 As a result, the share of home-purchase borrowers with credit scores below 620 has fallen from about 17 percent of borrowers at the end of 2006 to about 5 percent more recently.9 Lenders also appear to have pulled back on offering these borrowers loans insured by the Federal Housing Administration (FHA).

When lenders were asked why they have originated fewer mortgages, they cited a variety of concerns, starting with worries about the economy, the outlook for house prices, and their existing real estate loan exposures. They also mention increases in servicing costs and the risk of being required by government-sponsored enterprises (GSEs) to repurchase delinquent loans (so-called putback risk). Other concerns include the reduced availability of private mortgage insurance for conventional loans and some program-specific issues for FHA loans as reasons for tighter standards. Also, some evidence suggests that mortgage originations for new purchases may be constrained because of processing capacity, as high levels of refinancing have drawn on the same personnel who would otherwise be available for handling loans for purchase. Importantly, however, restrictive mortgage lending conditions do not seem to be linked to any insufficiency of bank capital or to a general unwillingness to lend.

Certainly, some tightening of credit standards was an appropriate response to the lax lending conditions that prevailed in the years leading up to the peak in house prices. Mortgage loans that were poorly underwritten or inappropriate for the borrower's circumstances ultimately had devastating consequences for many families and communities, as well as for the financial institutions themselves and the broader economy. However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery.

Policy Responses
The factors contributing to reduced mortgage lending and lower rates of homeownership are varied and complex; no simple solutions exist that can, on their own, restore the housing market to health. Since the extent of the crisis became apparent, a range of initiatives has been undertaken. For example, a number of public and private efforts have been made to help avoid unnecessary foreclosures and to enable underwater and other borrowers to refinance at lower interest rates. Alternatives to foreclosure, including short sales and deed-in-lieu arrangements, have become more common. The recent settlement with a group of large servicers includes provisions to improve the process for working with delinquent borrowers and to compensate foreclosed-upon homeowners who were unfairly treated in the past.

As I have noted, vacant foreclosed homes lose value and create problems for neighborhoods. The overhang of empty homes also slows the recovery of the housing market by keeping prices low and limiting the need for new construction. To explore ways to address the number of foreclosed homes standing empty, the Federal Housing Finance Agency, which supervises the GSEs, undertook a pilot initiative that made it easier for qualified investors to purchase pools of foreclosed properties from Fannie Mae; the acquired properties would then be rented for a specified number of years. For our part, the Federal Reserve is encouraging the institutions we supervise to manage their inventories of foreclosed homes in ways that do not exacerbate problems in local neighborhoods, including renting them out, where appropriate, rather than leaving the properties vacant.10 

Policymakers have also taken steps to remove barriers to the flow of mortgage credit. The Federal Housing Finance Agency recently announced new rules that will provide mortgage lenders greater clarity about the conditions under which they will be required to buy back defaulted mortgages from Fannie Mae and Freddie Mac or otherwise address origination problems. This greater clarity may result in reduced concern about putback risk, which in turn should increase the willingness of lenders to make new loans. In its rulemakings and supervision, the Federal Reserve, along with other bank supervisors, has worked with lenders to try to achieve an appropriate balance between reasonable prudence and ensuring that qualified borrowers are not denied access to credit.

Although regulatory policy will be important for restoring a fully functioning housing and mortgage market, the strength of the overall economic recovery is crucial as well. Obviously, loss of employment or income makes it more difficult for families to pay their mortgages, maintain good credit histories, refinance their mortgages at lower rates, and avoid foreclosure. People who are worried about their jobs are understandably more reluctant to purchase homes, and households who have suffered hits to their incomes face difficulty qualifying for a mortgage and saving for a down payment. Concerns about the financial strength of households and about the economic recovery also make lenders more cautious.

At the Federal Reserve, we have sought to support the economic recovery and maintain price stability--the two goals given to us by the Congress--by keeping both short-term and longer-term interest rates historically low. Low interest rates reduce the cost to households of buying homes, cars, and other consumer durables while increasing the attractiveness of new capital investments by firms. Increased demand in turn leads to faster economic growth and more jobs. My colleagues and I have been and remain quite concerned about the stubbornly high level of unemployment--particularly long-term unemployment. We have taken strong actions throughout the financial crisis and recovery to help stabilize the economy. In September, we took the added step of stating that we will continue actions to put downward pressure on longer-term interest rates until the outlook for the job market improves substantially in a context of price stability. Our hope is that our statement provides individuals, families, businesses, and financial markets greater confidence about the Federal Reserve's commitment to promoting a sustainable recovery with price stability and that, as a result, they will become more willing to invest, hire and spend. In addition, of course, the historically low mortgage rates that have resulted from the Federal Reserve's policies are directly supporting the housing market by putting homeownership within the reach of more people.

While the economic recovery and regulatory policy affect access to credit for all households, some potential borrowers may face the added burden of discrimination. In our role as a banking regulator, the Federal Reserve strives to ensure that the banks we supervise obey laws that prohibit illegal discrimination in lending. I am reminded here that fair treatment in housing was a significant focus of Dr. King's, and the Fair Housing Act of 1968--still one of the nation's cornerstone laws to prohibit discrimination--was passed only a week after his assassination and stands among his legacies.

Two types of discrimination continue to have particular significance to mortgage markets: One is redlining, in which mortgage lenders discriminate against minority neighborhoods, and the other is pricing discrimination, in which lenders charge minorities higher loan prices than they would to comparable nonminority borrowers. The Federal Reserve has been vigilant in identifying and stopping such abuses, and we remain committed to vigorous enforcement of the nation's fair lending laws. We currently co-chair, with the Department of Justice, an interagency task force to promote robust fair lending supervision and enforcement.

Government policies, both microeconomic and macroeconomic, have an important role to play in restoring the health of the housing sector. However, government can only be part of the solution; in the remainder of my remarks I will discuss what others can do, including potential homeowners themselves.

Financial Preparedness and Homeownership
One lesson of the past few years is that the desire to own a home is not enough. Although many foreclosures resulted from job loss or other economic hardships, others occurred because people bought more of a house than they could afford, took out a loan that was not appropriate to their circumstances, or did not manage their resources well. Future homeownership must be built on a more solid foundation. And while much of the responsibility for building that foundation must lie with lenders and with regulators, consumers must do their part as well by acquiring the information and financial knowledge they need to make sound decisions. Operation HOPE has made this point frequently and forcefully.

Effective financial education--aimed at both youths and adults--can provide people with the knowledge they need. Some of the skills that prospective homeowners need are relatively basic--for example, knowing how to shop for the lowest interest rate and fees, understanding the difference between a fixed-rate and an adjustable-rate mortgage, and, very importantly, knowing how to find trustworthy information and advice. More generally, the decision to buy a home must be consistent with a family's longer-term objectives, needs, and resources. Good financial planning--including effective budgeting, adequate saving, and sensible investing--can help families maintain homeownership while also pursuing other important objectives, such as preparing for retirement or financial emergencies. And financially informed households will have a better chance to build wealth, reducing--in the case of minority households--the large wealth gap that exists between minorities and other groups.

At the Federal Reserve, we appreciate the benefits to families of acquiring basic information and skills about managing their money. But we see another important advantage of financial education, which is that an economy with financially knowledgeable households is likely to be stronger, more equal, and more stable. As such, we all gain from efforts to increase financial literacy.

Although basic knowledge about money management and decisionmaking is extremely useful, it is not practical, of course, for everyone to be a financial expert. Sometimes a professional can help, and people should not be afraid to seek advice at appropriate times. For example, an individual may be involved in buying a home--a complex and intimidating experience for many people--only once or twice in a lifetime. That's why advice from a housing counselor at the right point in the process can make all the difference. Nonprofit organizations can help prospective homeowners assess their readiness to purchase. And, by providing useful information about how to search for a home, apply for financing, handle home maintenance, and prevent delinquency, these nonprofits can help aspiring homebuyers find the right home and maintain their mortgage payments. 11 We have also seen that counseling can help consumers who are facing delinquency or default. Borrowers in trouble who receive foreclosure counseling are relatively more likely to subsequently become current on their mortgage, receive a loan modification, and, ultimately, keep their home. 12 

Financial preparedness is important not only for prospective homebuyers. It ought to be a lifelong undertaking, starting with children and teenagers. Organizations around the country--including Operation HOPE--help people across a range of ages develop their skills. Despite, or perhaps because of, the broader economic challenges we face, it now seems to be a time of creativity and innovation in this field. We are seeing experimentation, knowledge sharing, public-private collaborations, "bottom up" community-driven approaches, and state- and local-government efforts to promote family financial security and opportunity.

More generally, community organizations like Operation HOPE have played an important role in helping low-income and minority communities weather the storm of the past few years. Besides promoting financial literacy and providing counseling (and sometimes credit) for homebuyers, community organizations have helped build small businesses through investment and technical assistance. Organizations such as NeighborWorks America (and as an aside, Federal Reserve Governor Sarah Bloom Raskin currently chairs its board) have been leaders in fighting the blight in neighborhoods with high rates of foreclosure. Unfortunately, just as families have been hurt by the financial crisis and recession, so have many community-based organizations. These groups face the daunting task of finding new sources of capital and investment in a constrained financial environment. Some organizations have begun to retool their operations and develop new markets, products, and strategies to better serve the financial needs of consumers and communities. Among other goals, they are developing strategies to foster responsible homeownership, which they see as an important building block for stronger communities.

To return to where I began, after a long and difficult period, we are seeing welcome signs of improvement in the housing market. An improving housing market will in turn aid the economic recovery while strengthening neighborhoods and increasing the financial well-being of families. Our recovery must be broadly felt to be complete, and families and communities that were already struggling before the crisis must be included in that recovery. As Dr. King is widely quoted to have said, "We may have all come on different ships, but we're in the same boat now."

The Federal Reserve will continue to do what we can to support the housing recovery, both through our monetary policy and our regulatory and supervisory actions. But, as I have discussed, not all of the responsibility lies with the government; households, the financial services industry, and those in the nonprofit sector must play their part as well. In that spirit, I would like to close by expressing my appreciation and admiration for the work that so many of you are doing to restore our neighborhoods and to help individuals and families regain a solid financial footing.

Thank you.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 11/15/2012 - 14:35 | 2984896 SolidSnake961
SolidSnake961's picture

any signs of recovery are merely transitory Mr. Chairman

Thu, 11/15/2012 - 14:36 | 2984910 redpill
redpill's picture

If he actually wanted to help the housing market he could tell all the big banks he bailed out to use the free money he's giving them to reduce peoples' mortgages to fair market value.  But alas, that's not really the game plan, now is it.

Thu, 11/15/2012 - 14:40 | 2984930 Alhazred
Alhazred's picture

Define fair market value

 

Do you mean that he should print money and steal from teh rest of us via inflation to keep people from being underwater on loans?!?!?!?!

 

Maybe we could use that logic to bail out people who naked short and bail them out to covered positions?

(obviously a bad idea)

 

the only option is to have a solid and real monetary system.

 

Help spread this petition around to end the fed

http://wh.gov/XWkP

It wont cause any direct action but if we get big enough numbers we can bring this discussion to the media.

Imagine if we got the coverage that the texas petition got.  We can win the debate lets bring it to the attention of the sheep.


http://wh.gov/XWkP

Thu, 11/15/2012 - 14:55 | 2985006 redpill
redpill's picture

No, what I'm saying is that since he's printing money anyway he might as well coerce the main beneficieries of it (the large bailed-out banks) to actually use it to reduce individuals' mortgage debt so that the market can begin moving again.

Fair market value is not difficult to determine, there are ample transactions occurring to ascertain that.

Obviously we need sound money, but Bernanke would never go for that, I'm merely pointing out that even under his suicidal money printing regime there are things he could do that would actually help, he just won't do them.  It's OK to help large banks but not OK to help individuals, apparently.

Thu, 11/15/2012 - 15:06 | 2985019 Zer0head
Zer0head's picture

and so our first priority was to funnel trillions to Wall Street and destroy the savings of a lifetime for tens of millions all because "the multiyear boom and bust in housing prices of the past decade, together with the sharp increase in mortgage delinquencies and defaults that followed, were among the principal causes of the financial crisis" but now as we enter the sixth year of this crisis it behooves us to start turning our attention to housing ...

Thu, 11/15/2012 - 15:22 | 2985139 LMAOLORI
LMAOLORI's picture

 

 

Simply put this is a means of taking bad mortgage securities off the books of the banks and institutional investors to make them appear more solvent the notion that this is intended to help main street is absurd anyway this is for Wall St. and for the government. Why for the government? It free's up cash of institutional investor's to buy treasuries so obama can keep spending taxpayers be damned.

Thu, 11/15/2012 - 15:26 | 2985161 redpill
redpill's picture

Correct, and the one group of people it does NOT help is the homeowners!

Thu, 11/15/2012 - 15:47 | 2985253 AldousHuxley
AldousHuxley's picture

"help homeowners" = "help banks with cashflow so they don't go bankrupt despite bad bets"

 

Thu, 11/15/2012 - 16:13 | 2985383 negative rates
negative rates's picture

You have to pay more, to play more, these days.

Thu, 11/15/2012 - 17:30 | 2985721 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

In 13 days, the ratio of new bitcoin creation to new usd creation will be 800,000usd per bitcoin.  

 

Interesting, no?

Thu, 11/15/2012 - 15:26 | 2985164 LibertyForSome
LibertyForSome's picture

I fail to see an issue here...

everything's going swimingly.

Just look at those algo's pump http://finance.yahoo.com/q?s=mdbx&ql=1

p.s. anyone remember investing and fundamental value... LOL 

Thu, 11/15/2012 - 15:54 | 2985283 Things that go bump
Things that go bump's picture

Does this mean credit requirements are going back to where the ability to breathe is qualification enough to buy a McMansion?  Oh good - my nail artist will now be better housed than me.  

Thu, 11/15/2012 - 18:31 | 2985947 StychoKiller
StychoKiller's picture

Did said artist paint yer face too? :>D

Thu, 11/15/2012 - 19:38 | 2986150 Things that go bump
Things that go bump's picture

Ha, Ha

Thu, 11/15/2012 - 19:40 | 2986161 Things that go bump
Things that go bump's picture

No, I do my own face.  

Thu, 11/15/2012 - 14:43 | 2984948 Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

Evil, they are, not stupid.

 

For that matter, they could give everyone making under 250,000 some money... say 250,000 - toward a house.

 

But it's all about the theft, baby.

 

 

Apropos of little, the broken window theory is widely descried as a 'fallacy' but I think you'll find that if we nuked Detroit - we'd all be better off.

 

 

Thu, 11/15/2012 - 14:47 | 2984969 MillionDollarBogus_
MillionDollarBogus_'s picture

Why can't he deliver QE $$ directly into consumer's hands..??

Why does he think it has to go to a big bank first, at a near zero interest rate..??

I want to see another treasury check in my mailbox before Christmas....

Thu, 11/15/2012 - 14:53 | 2984991 Dr. No
Dr. No's picture

Because the Big banks own the FED.  Sorry to break you the 100 year old news.

 

EDIT: you must be in the 47%.  I cant remember last time I got a check from the Treasury which I hadnt already paid for.

Thu, 11/15/2012 - 14:53 | 2984998 MillionDollarBogus_
MillionDollarBogus_'s picture

Interesting how he keeps using the words 'mortgage' and 'homeowner' over and over and over....

Is buying a house the key to economic recovery..??

Greenspan tried that after the dot com bust...

Right...

Thu, 11/15/2012 - 15:23 | 2985146 Spastica Rex
Spastica Rex's picture

;)

Thu, 11/15/2012 - 15:58 | 2985296 Things that go bump
Things that go bump's picture

There are really only so many kinds of bubbles they can blow.   

Thu, 11/15/2012 - 16:28 | 2985449 viahj
viahj's picture

we should jsut confine them to the bath tub

Thu, 11/15/2012 - 20:08 | 2986243 Ms. Erable
Ms. Erable's picture

Call me bubbles. They can blow me.

Thu, 11/15/2012 - 14:54 | 2984999 Al Huxley
Al Huxley's picture

'Why can't he deliver QE $$ directly into consumer's hands..??'

 

I'm going to go with 'because he's a disingenous liar in the employ of the Wall Street investment banks'.

Thu, 11/15/2012 - 15:11 | 2985089 Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

I recently asked on another thread on here the very related question - putting aside whether or not its a good or ideal idea - why Krugman et al loves printing money to give to government and banks to 'spend'  {create more debt}..... but would assuredly not favor printing money to simply pay the debt {not held by the fed, around 66%}....

 

I legitimately am asking - why don't they fear inflation when its giving fiat to banks, but do fear it {???} were we to give it to the Chinese, say, to get out from under the interest, etc.

 

And yeah - if you can create "demand"  {a religious word? do economists really think that since you can analogize the economy to a pump, you should craft policy for pumps??} by giving it to Lloyd Blankfein, why not by giving it to 1,000 small businesses or fellas like my Uncle Stu - whose penchant for strippers and cocaine would certainly stimulate a vital part of the economy.

 

 

Thu, 11/15/2012 - 15:14 | 2985103 BlueCollaredOne
BlueCollaredOne's picture

Round here they go by "Hookers and blow."

Thu, 11/15/2012 - 15:01 | 2985037 max2205
max2205's picture

Stupid Ben. It's your fault. Take our savings interest and give it to the banks. I am not spending my principal on stupid stuff I don't need

Thu, 11/15/2012 - 15:16 | 2985111 Karlus
Karlus's picture

You are right redpill. We should totally reward the gay hairdresser who was featured on "Flip that home" that has four properties that he is rehabbing.

/sarc off

Reducing morgtage on people that bought is called moral hazard. They need to get out of the house and then when this excess inventory is on the market a price will be determined. People that can afford it will take the risk to get a mortgage if they can afford it. Not because the govt is trying to push NINJAs into assets to reinflate a bubble. Two wrongs dont make a right.

If you are in a Santa Clause mood, reward people who are current on their mortgages.

As far as free money for banks, the reality is the govt is raising the amount of capital they need through more and more "stress tests."

One min banks lending is too "loose" and they need to tighten up their lending standards, now its too "tight?" Lol

Thu, 11/15/2012 - 18:36 | 2985957 Ned Zeppelin
Ned Zeppelin's picture

There is only one reason that makes sense to grant principal reductions: because the alternative, that of foreclosing and having another empty house to sell, produces a greater loss in the system, both on the home itself, and the homes surrounding the foreclosed home which take a beating.  I do understand the philosophical objection of "moral hazard," but having left these loathsome fools at the TBTFs off the moral hazard hook by injecting orders of magnitude larger sums than we are talking about here,  I think that cow has long since left the barn.  I'm not sure what the difference is between a person who got suckered into buying more house than he could afford and the well-dressed thieves who shoved the applications at them and told them to lie because "everyone does it this way," and the latter has pocketed his loot and is laughing in a "prosecution free" zone.  The American way, I guess.

I see housing from an interesting vantage point at my job where we have a homebuilding division, and there is no doubt that sales are up, with prices modestly increasing.  It is also true that the only lenders in the space are GSEs - there are no others, and even there, only a couple of banks, Wells Fargo being notable in this egard, get the job done in the newly tightened, conservative credit practices GSE world.  So it is quite apparent to me that absent the GSEs, the housing market would be virtually dead, and values collapse quickly, and the consequences of that would be quite detrimental, no matter which way you look at it.  

No solutions, only observations. 

 

Thu, 11/15/2012 - 14:40 | 2984931 Skateboarder
Skateboarder's picture

I like how he shoves the blame unto the American taxpayer. Classic.

Thu, 11/15/2012 - 14:53 | 2984996 buzzsaw99
buzzsaw99's picture

taxpayer, barney frank, whoever, just not the bank, never the bank.

Thu, 11/15/2012 - 15:42 | 2985231 XitSam
XitSam's picture

He completely ignores the Fed's complicity in the housing bubble.

Thu, 11/15/2012 - 14:34 | 2984897 EvlTheCat
EvlTheCat's picture

I did my part.  Pulled all my money out of the bank.

Thu, 11/15/2012 - 14:51 | 2984990 Sweet Chicken
Sweet Chicken's picture

Me too on November 5th

Thu, 11/15/2012 - 15:20 | 2985132 ParkAveFlasher
ParkAveFlasher's picture

Pulled out of a money market, angling for a big PM buy. 

Thu, 11/15/2012 - 16:08 | 2985352 Induced Coma
Induced Coma's picture

i did this. cashed out retirement savings in mutual funds and money markets, payed off debt and bought hard assets. funny when i called visa and amex to tell them i was closing my accounts.... their fear was palpable. "you know you might not be able to get these cards back right away if you need them, maybe you should keep them". "we might not make payroll this month if your monthly interest and fees dont come in"

 

ok i made that last one up - but you could tell its not in their game-plan to have people pay out and move on.

 

IC

Thu, 11/15/2012 - 14:44 | 2984899 TruthInSunshine
TruthInSunshine's picture

  Kelo v. City of New London, 545 U.S. 469 (2005), bitchez.

The Bernank should urge Congress to pressure states to condemn and tear down massive numbers of housing units (new & existing).

Voila!

If you want to make an omelette, you have to break some windows.

 

 

/totalsarc

Thu, 11/15/2012 - 15:02 | 2985045 Urban Redneck
Urban Redneck's picture

If he was speaking to Operation Hope it was to convince a dumb gullible economically illiterate blacks that they should go into more debt buying shit they can't afford, so that the banks can foreclose on them or 1099-G them for tax write downs  later.  Operation Hope is nothing more than a CRA slush fund where banks partner to get points with the OCC/OTS regulators on their CRA compliance exams.

 

Thu, 11/15/2012 - 14:35 | 2984902 Alhazred
Alhazred's picture

Really the finance industry played a part?!?!?!?!

wow do tell!     Idiot.

 

 

Also, please sign this to annoy obama and help create press about ending the fed.

http://wh.gov/XWkP

 

Thu, 11/15/2012 - 14:35 | 2984904 slaughterer
slaughterer's picture

Is it just me, or does anybody notice that the Bernank is slowly going Galt?

Thu, 11/15/2012 - 14:45 | 2984956 fonzannoon
fonzannoon's picture

I'm not sure what you mean slaughterer. Housing is improving. Unemployment has been coming down. The data they have presented (up until today) would lead one to believe that they are very close to having to raising rates to make sure growth does not get out of hand. Just look at the report CNBS keeps flaunting from the "world gold council". Sales are down. The big hedge funds must be dumping gold en masse in gthe dark pools right now.

Thu, 11/15/2012 - 15:23 | 2985143 ParkAveFlasher
ParkAveFlasher's picture

From each according to equity, to each according to debt. 

Thu, 11/15/2012 - 18:36 | 2985958 StychoKiller
StychoKiller's picture

Hey!  Don't Bogart that joint...

Thu, 11/15/2012 - 15:37 | 2985210 blunderdog
blunderdog's picture

He might be getting a bit frustrated that FEDGOV hasn't picked up on his oh-so-subtle hinting at the FISCAL PROBLEMS...

Thu, 11/15/2012 - 14:35 | 2984905 RSloane
RSloane's picture

He wants me...me.....as a part of a household to help him out? When he sends me half his paycheck then I'll help him out. If not, he can go screw himself.

Thu, 11/15/2012 - 14:36 | 2984909 ebworthen
ebworthen's picture

Fuck Ben Bernanke.

What an ass.  Bailout the big banks, insurers, and corporations when they screw up - devalue the savings and investments of regular people by 50%, devalue the currency and shift the debt for bailouts to the backs of current and future generations - and then call for austerity from those you just bent over?

FUCK YOU.

Thu, 11/15/2012 - 14:41 | 2984939 ShorTed
ShorTed's picture

+100 for the first fuck you Bernanke post.

Thu, 11/15/2012 - 14:44 | 2984955 Race Car Driver
Race Car Driver's picture

Fuck him, indeed.

+1 Rant

Thu, 11/15/2012 - 14:56 | 2985011 TruthInSunshine
TruthInSunshine's picture

Dirty Sanchez Ben Bernanke!

Thu, 11/15/2012 - 15:10 | 2985083 catacl1sm
catacl1sm's picture

Can't believe it took this long in a thread that was ABOUT him!

 

and

 

Blumpkin Bernanke!

Thu, 11/15/2012 - 17:22 | 2985688 Kali
Kali's picture

I will add another fuck you Bukake.  Make loans to the people for 0% to pay off debt and buy new houses.  Fuck the banks. 

Thu, 11/15/2012 - 15:06 | 2985034 dwdollar
dwdollar's picture

AND blame the people for not doing their part (whatever that means), let's not forget that. Bernanke has graduated from a pompous ass to a pompous ass-clown.

Thu, 11/15/2012 - 14:36 | 2984911 Conman
Conman's picture

Bearded clam speaks = +5 ES

Thu, 11/15/2012 - 15:05 | 2985064 Winston Churchill
Winston Churchill's picture

Gold down, what a regular coincidence that is when St.Bernanke of Zimbabwe

sends his gospel down from Mount Mariner Eccles.

Halauah ,brothers,we are so blessed..

Thu, 11/15/2012 - 14:36 | 2984915 Al Huxley
Al Huxley's picture

Ben, if you want households to participate in the 'recovery' then start mailing out the checks, instead of giving all the free money to your fuckhead PD buddies.

Thu, 11/15/2012 - 14:38 | 2984924 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Blaming the limp recovery on households is akin to blaming the rape victim for the rape.

Fuck you and all your bankster buddies Bernank. May you burn in hell for all eternity.

Thu, 11/15/2012 - 14:39 | 2984927 MiltonFriedmans...
MiltonFriedmansNightmare's picture

And take the president with you, MFer.

Thu, 11/15/2012 - 14:36 | 2984917 LongSoupLine
LongSoupLine's picture

unfucking real.  this fucker needs to fall off the planet.

Thu, 11/15/2012 - 14:37 | 2984919 semperfi
semperfi's picture

SOLUTION:   ObamaHouse  for  the 47%  with a  0-down  ObamaMortage  of  10% of whatever  your paycheck is.

Thu, 11/15/2012 - 14:39 | 2984926 kralizec
kralizec's picture

He is a consistent dick, isn't he?

Up his!  I am going to leave my job soon, stiff the bank, suck off the Fed teat and try to help collapse this bitch!

Thu, 11/15/2012 - 14:42 | 2984944 Zap Powerz
Zap Powerz's picture

You, sir, are a real patriot.  I appreciate the magnitude of this sacrifice you will make in order to give the country you love some small chance of fixing itself.

(NO sarcasm)

Thu, 11/15/2012 - 14:40 | 2984929 A Lunatic
A Lunatic's picture

Since the FED is handing out free money to the banks anyway how about just giving loans out to anybody who wants one. That should work into another excellent pump and dump scheme, the grand finale if you will, with the added bonus of finally destroying any evidence that there ever was a decent standard of living anywhere on the North American continent. Why continue to fuck around..........?

Thu, 11/15/2012 - 14:41 | 2984933 bubbleburster
bubbleburster's picture

Off topic, which is really related to the carbon tax propositions.....

 

http://www.dailymail.co.uk/sciencetech/article-2217286/Global-warming-st...

 

 

Thu, 11/15/2012 - 14:40 | 2984936 Zap Powerz
Zap Powerz's picture

My contribution to the recovery will be to lay off employees so I can then afford all the free health care that Obama promised and so I can "finally" start paying my fair share (cuz six figure federal tax checks just aint payin my fair share yet).

Thu, 11/15/2012 - 14:41 | 2984938 cougar_w
cougar_w's picture

What the actual fuck.

Bernanke is living in a fantasy. Everyone is broke. B-R-O-K-E. The banks are broke, no way they are loaning good money to anyone else broke.

The Fed should just do the helicopter thing -- put money into the hands of people with no other hope but to buy all the shit they can -- and wait for the inflation dragon to eat the deflation demon. If he's lucky. It might already be too late.

Thu, 11/15/2012 - 14:47 | 2984972 Skateboarder
Skateboarder's picture

Don't worry brah, operation HOPE's got your back. We're gonna turn you into a crackhead overnight. :)

Thu, 11/15/2012 - 14:42 | 2984942 Bastiat
Bastiat's picture

I almost bought something extra last week . . almost bought something this week too.  Is that good enough?

Thu, 11/15/2012 - 14:45 | 2984958 Zap Powerz
Zap Powerz's picture

That depends.  Did you actually walk into a store and browse?  Did you actually ask a salesperson a question about mechandise before you said: "I will think about it, thank you for your time." ?

If so, then yes, you helped.  If you just sat at home and thought about buying something then you didnt help you lazy fucker.  :)

Thu, 11/15/2012 - 14:48 | 2984975 Bastiat
Bastiat's picture

I did some research on the net -- it's actually more stimulating than owning most shit.  ;-)

Thu, 11/15/2012 - 14:52 | 2984992 Skateboarder
Skateboarder's picture

Snacking on potato chips while moving from one Amazon page to another does not count as shopping. But apparently several dozen data analytics companies have pieced together your likes, dislikes, personality traits, etc. and assembled a monstrous product-hungry digital version of you as you did your shopping. The terrorists won?

Thu, 11/15/2012 - 14:59 | 2985031 Bastiat
Bastiat's picture

Heh.  I don't eat potato chips. 

And if they understood my personality type, they'd save the effort of trying to sell me anything!

Thu, 11/15/2012 - 15:11 | 2985088 Skateboarder
Skateboarder's picture

Potato chips are wonderful - as long as they are not cooked in corn/soybean/nasty oils.

I understand... it takes a lot of convincing to sell me something also, and I tend to only buy what I absolutely need. I hope I make their algos eat shit. "Why doesn't this guy buy anything!?!"

Thu, 11/15/2012 - 15:18 | 2985120 Bastiat
Bastiat's picture

For chips, I like corn chips with home made guacamole, salsa, bean dip, ceviche.  Wife and I both cook.  

I like potato chips too, just don't eat 'em much.  Now popcorn done in organic coconut oil . . .

Thu, 11/15/2012 - 18:40 | 2985974 StychoKiller
StychoKiller's picture

Well, I had to go to my mechanic and order 4 new tires fer my cowboy cadillac ($90/tire, what a bargain!)

Thu, 11/15/2012 - 14:42 | 2984943 khakuda
khakuda's picture

Mortgage lending standards now appear to be "overly tight"?  Hahahahahahahahaha!  Mortgage rates are at the lowest levels ever and the FHA is guaranteeing defaulting 3.5% mortgages?  HOW MUCH LOOSER CAN YOU GET????

Thu, 11/15/2012 - 18:41 | 2985976 StychoKiller
StychoKiller's picture

How about 7.25% mortgage paid off a month ago?  (YAY!)

Thu, 11/15/2012 - 18:43 | 2985979 Ned Zeppelin
Ned Zeppelin's picture

That is what the ads say.  But it's not true that just anyone can get a mortgage - in fact it is very tight. Many don't make the cut in the new credit environment, even with FHA low down payments.  Money in the residential mortgage markets is anything but loose right now.  Remember: The volume of transactions is still at historically low levels, despite the recent better news (and that you could argue is simply what happens when the news is so bad for so long.) .

There is a practice right now of getting you in the door with the lure of low rates, getting your fees, and then denying you because "the house doesn't appraise."  Excuse me, a racket. 

Just the facts.

Thu, 11/15/2012 - 20:30 | 2986295 khakuda
khakuda's picture

Your comments are true, and there are some ridiculous cases out there, but where was Ben when things were too easy for the better part of a decade? Did he bitch about that? Markets that overshoot tend to undershoot, as they say. This is how things average out over time and we should expect a period of tougher standards. I would argue that with the absolute level of rates so low, standards SHOULD be significantly higher. If I write 10 one year mortgages at 10% each, one can default and I'm almost whole on the interest from the others. If I write 10 at 3.5% and one goes bad, I'm screwed. Not enough profit to risk the loss.

There was a reason lenders wanted 20% down and borrowers to have jobs historically before giving loans. It was from long tested experience.

Thu, 11/15/2012 - 14:43 | 2984947 bobbydelgreco
bobbydelgreco's picture

can't you see the flop sweat i can

Thu, 11/15/2012 - 14:45 | 2984959 Chump
Chump's picture

Um...fuck you Bernanke.  Sideways.  With a tire iron.

Thu, 11/15/2012 - 14:45 | 2984960 A Lunatic
A Lunatic's picture

“Americans are so enamored of equality, they would rather be equal in slavery than unequal in freedom.”
  Alexis de Tocqueville

Thu, 11/15/2012 - 14:46 | 2984961 Der Wille Zur Macht
Der Wille Zur Macht's picture

With cardboard refrigerator boxes, I can kill two birds with one stone: Continue living out my childhood fantasies AND pay no mortgage. Wow, I'm a genius!

 

Thu, 11/15/2012 - 14:46 | 2984963 buzzsaw99
buzzsaw99's picture

he ain't no maestro

Thu, 11/15/2012 - 14:47 | 2984973 SheepDog-One
SheepDog-One's picture

Get on those oars and row HARDER, damn peasants!!

Thu, 11/15/2012 - 14:48 | 2984974 Bansters-in-my-...
Bansters-in-my- feces's picture

But, as I have discussed, not all of the responsibility lies with the government.

Too funny, Bozo thinks their part of the Goverment.
Silly rabbit.

Thu, 11/15/2012 - 14:48 | 2984976 chunga
chunga's picture

This is funny.

Local woman wants to shut down big bank

"Wells Fargo said she was six months behind on her mortgage. But she fought the foreclosure, and eventually the case was dismissed. The judge also ruled Wells Fargo should pay Sharp. She and the bank settled on nearly 20 thousand dollars for attorney's fees. Eight months later she still hasn't seen that money."

So, to try and get it, Sharp and her attorney turned the tables on Wells Fargo. "We filed a foreclosure notice to get our client the money she's owed," said attorney Tom Pycraft.

Thu, 11/15/2012 - 18:43 | 2985980 StychoKiller
StychoKiller's picture

Methinks a lien on the bank's property would have been more accurate.

Thu, 11/15/2012 - 14:50 | 2984982 youngman
youngman's picture

Trying to save homeowners who are as much at fault as the bankers that lent them the money...total Greed.....at the expense of the savers in this country is wrong...people that do the right thing should not be punished...but Bernanke has not only punished he is destroying them...

Thu, 11/15/2012 - 15:13 | 2985096 Bobportlandor
Bobportlandor's picture

I have a Q. Who did the little guy learn from?

Who was it that put into place the rules?

Who was it that keep raising the taxes fees regulations?

I submit the working 80% were just trying to survive an attact from the government employee welfare state.

And now what you are seeing is they are done pulling the wagon.

 

I never thought malinvestments would rise to the top as the word used to discribe all that's wrong for the last 40+ yrs.

Thu, 11/15/2012 - 14:50 | 2984984 imbrbing
imbrbing's picture

"the sharp increase in mortgage delinquencies and defaults that followed, were among the principal causes of the financial crisis and the ensuing deep recession"

BULLCRAP, they are stating the RESULT of there failed policies as the cause, what a bunch of crap!

Wow, just wow.

Thu, 11/15/2012 - 14:59 | 2985027 akak
akak's picture

Not only that, but how can we forget Ben's immortal words that "the (so-called) 'subprime crisis' will be contained and will not spread to the broader economy"?

So which is it, or was it, Ben?

Damn, I wish I could punch this lying mother fucker in his smug and arrogant bearded face.

Thu, 11/15/2012 - 14:51 | 2984988 orangegeek
orangegeek's picture

This type of irrational thought is common in tops of bear markets.  Clearly these markets have turned down. 

 

For how long?  We think for years.  And the government knows this.  Government is in a panic because austerity cuts won't work and spending more won't work.

 

The SP500 has responded to QE infinity with this.  http://bullandbearmash.com/chart/sp500-daily-drops-15-today-forecast/

 

Government is the problem, but they will never admit it and will aggressively blame others.

Thu, 11/15/2012 - 15:17 | 2985118 TruthInSunshine
TruthInSunshine's picture

Some say the Nikkei-ization has set in already.

Some say QEternity will save all.

Thu, 11/15/2012 - 14:56 | 2985001 John McCloy
John McCloy's picture

 What is your ZIRP transfer from savers to PD's costing us annually Ben?....Is it 580 Billion annually or 680 Billion annually? I forget. Imagine what they could have done with all that cash the past few years not counting the stealth inflation tax on gas and Twinkies.

Fuck it Ben..17 times a charm right?

Thu, 11/15/2012 - 14:55 | 2985002 Bam_Man
Bam_Man's picture

25 years of monetary shenanigans have taken us far as we can go.

Whether the Fed likes it or not, the bubble-blowing is over.

Thu, 11/15/2012 - 14:55 | 2985004 Peter Pan
Peter Pan's picture

Dear Ben,

You cannot fight the reality of the market forever and the more you do so the greater its wrath will become.

If your bosses want to run up  mega expenditure fighting wars and pork barrelling, then let THEM find the money.

By constantly printing you are upping the drug dosage to an existing drug addict. Unless you are a pusher stop doing it.

Regards

Thu, 11/15/2012 - 14:56 | 2985005 Peter Pan
Peter Pan's picture

.

Thu, 11/15/2012 - 14:56 | 2985010 buzzsaw99
buzzsaw99's picture

if the banks pass off all the loans to fannie mae using their standards doesn't that mean that the gubbermint is to blame?

Thu, 11/15/2012 - 14:57 | 2985013 holgerdanske
holgerdanske's picture

AND the market ramps.

Proof, if ever you needed it, the stockmarket investors have no brains.

Thu, 11/15/2012 - 14:59 | 2985015 Sweet Chicken
Sweet Chicken's picture

Why hasn't someone shot this piece of shit yet?!

 

EDIT*

 

Certainly at this point it could be considered self protection no?!

Thu, 11/15/2012 - 15:01 | 2985040 Bastiat
Bastiat's picture

It wouldn't matter: the great satanic puckered anus has an endless supply.

Thu, 11/15/2012 - 15:07 | 2985069 Sweet Chicken
Sweet Chicken's picture

True but the next person to sit down might think twice before opening their mouth. 

Thu, 11/15/2012 - 14:58 | 2985025 Wakanda
Wakanda's picture

Yo Ben - how about a free and open market of currencies, equities, bonds, everything?

I mean, this shit is not working.

Just sayin'.

Thu, 11/15/2012 - 14:59 | 2985033 HD
HD's picture

Even with the power to print TRILLIONS this asshole can't fix a damn thing. It's amazing that a handful of people in the world - their official job is to lie, manipulate and steal from just about everyone on the planet. Good work is you can get it.

 

Thu, 11/15/2012 - 15:04 | 2985053 Bastiat
Bastiat's picture

Rasing taxes and cutting spending will help -- it always does on the brink of a depression.

Thu, 11/15/2012 - 15:03 | 2985042 Miles Kendig
Miles Kendig's picture

Balance sheet considerations should not seriously constrain central banks - Ben Bernanke

Too bad Ben Bernanke fails to appreciate that households are not like central banks!!

Thu, 11/15/2012 - 15:06 | 2985044 SilverFish
SilverFish's picture

Bernake logic........

 

Baby boomers dying of old age and the the remainder moving to nursing homes + hoards of people under water on their mortgages and just walking away = glut of empty pre existing homes for sale = WE NEED TO BUILD MORE HOUSES!!!

 

The new math.

 

Learn it bitchez!!

Thu, 11/15/2012 - 15:05 | 2985048 semperfi
semperfi's picture

Ben,

I'll make a deal with you.  Give me $10,000,000 and I'll go buy a house, 2 Chevy Volts, and 100 shares of each of your big banks.

Thu, 11/15/2012 - 15:04 | 2985057 Quinvarius
Quinvarius's picture

Well.  Ben is done.  Gold can go back up now.

Thu, 11/15/2012 - 15:07 | 2985058 Zer0head
Zer0head's picture

"More generally, the decision to buy a home must be consistent with a family's longer-term objectives, needs, and resources. Good financial planning--including effective budgeting, adequate saving, and sensible investing--can help families maintain homeownership while also pursuing other important objectives, such as preparing for retirement or financial emergencies."

We at the Federal Reserve understood this but nevertheless made the decsion to bring interest rates to zero and in the process rammed it straight up the assholes of the suckers who somehow believed that effective budgeting, adequate saving, and sensible investing would help maintain homeownership and allow the pursuit of other important objectives, such as preparing for retirement or financial emergencies.

Thu, 11/15/2012 - 15:25 | 2985138 Miles Kendig
Miles Kendig's picture

the suckers who somehow believed that effective budgeting, adequate
saving, and sensible investing would help maintain homeownership and
allow the pursuit of other important objectives, such as preparing for
retirement or financial emergencies

Never forgetting that the most important objective of any actor within the economy is seeing to meeting the home ownership, retirement and financial emergency needs of those that populate central banks, their member institutions and subservient political and judicial systems - Tales from Bernankistan

Thu, 11/15/2012 - 15:13 | 2985084 Zer0head
Zer0head's picture

.

Thu, 11/15/2012 - 15:17 | 2985117 otto skorzeny
otto skorzeny's picture

the beatings will continue until morale improves

Thu, 11/15/2012 - 15:22 | 2985140 hairball48
hairball48's picture

Real people actually sat and listened to that shit?

Thu, 11/15/2012 - 15:22 | 2985141 jbvtme
jbvtme's picture

get the fucking hook

Thu, 11/15/2012 - 15:22 | 2985142 catacl1sm
catacl1sm's picture

Was his lip quivering?

Thu, 11/15/2012 - 15:29 | 2985176 larz
larz's picture

yay ben get to work like chucky shumer says clap clap clap clap - good job are there any nobels left?

Thu, 11/15/2012 - 15:29 | 2985178 khakuda
khakuda's picture

Arrogance - "The act of Ben Bernanke thinking he knows better than the ENTIRE market what interest rates should be and what constitutes appropriate underwriting and risk pricing for mortgages and all other fixed income instruments"

Thu, 11/15/2012 - 15:33 | 2985189 Madcow
Madcow's picture

and still no mention of systemic criminal fraud.

the average person does not buy the argument that we've living through some normal economic cycle - 

they know that this is the direct result of insitutionalized corruption and rampant and uncheck fraud.

unless and until people regain faith in their government and the regulatory apparatus, there can be no hope for a recovery

Thu, 11/15/2012 - 15:35 | 2985201 Bansters-in-my-...
Bansters-in-my- feces's picture

Ben.....

Meet in the alley at 11;45 pm.

I have some of those paper thingys you love so much that I would like to give you.

They will be rapped around a rock ,so that way you will know it is me...Thanks in advance.

B.I.M F...

Thu, 11/15/2012 - 15:35 | 2985202 pragmatic hobo
pragmatic hobo's picture

bernanke ... how can a guy so smart be so goddamn stupid.

Thu, 11/15/2012 - 16:21 | 2985256 helping_friendl...
helping_friendly_book's picture

 

 

Thu, 11/15/2012 - 15:58 | 2985295 Vince Clortho
Vince Clortho's picture

Chairman Bernanke will save the housing market in the same manner he used his constitutional powers to save the equities markets.

Thu, 11/15/2012 - 15:59 | 2985302 Vooter
Vooter's picture

Cee U Next Tuesday, Ben!

Thu, 11/15/2012 - 16:13 | 2985382 bnbdnb
bnbdnb's picture

Ben Ben Ben. As long as you keep telling us you need our help, you won't get it.

Thu, 11/15/2012 - 16:18 | 2985396 Liquid Courage
Liquid Courage's picture

Dr. Strangenanke ... or,  How I Learned to Stop Worrying and Love The Debt-bomb.

Gen. Petraeus: Doctor, you mentioned the ratio of ten women to each man. Now, wouldn't that necessitate the abandonment of the so-called monogamous sexual relationship, I mean, as far as men were concerned?
Dr. Strangenanke: Regrettably, yes. But it is, you know, a sacrifice required for the future of the human race. I hasten to add that since each man will be required to do prodigious...service along these lines, the women will have to be selected for their sexual characteristics which will have to be of a highly stimulating nature.
Russian Ambassador: I must confess, you have an astonishingly good idea there, Doctor.
Thu, 11/15/2012 - 17:00 | 2985591 Kokulakai
Kokulakai's picture

I got the sense Mortimer & Randolph were explaining commodities.

Thu, 11/15/2012 - 17:02 | 2985594 sink critically
sink critically's picture

When push comes to shove, the people will vote with their wallets. Not looking like your normal holiday buying season. It's more fun to cook at home and sit around with friends and family anyway...reminder to stay in good graces of one person who has a home at which to gather.

Thu, 11/15/2012 - 17:38 | 2985743 R_J
R_J's picture

Huh? I read "HOPE.......Church" -then i dozed off...

Thu, 11/15/2012 - 18:10 | 2985867 lordbyroniv
lordbyroniv's picture

The FED is now blabbing about 'minorities' too it seems.

Pretty pathetic that the FED is now parroting Pelosi commie garbage.

The FED is so so fucked.

They are now blathering socialist talking points.

 

END GAME....BITCHEZ!!!!111111

 

 

Thu, 11/15/2012 - 18:30 | 2985944 stiler
stiler's picture

i won't buy a house except in a fireside sale after the economy goes kaplunk finally, nor will i buy a new car, only used. just say no to banksters. i will stack silver.

Thu, 11/15/2012 - 21:53 | 2986502 Bitchin Bear
Bitchin Bear's picture

How appros pro that this speech was in Atlanta - "A-town - the welfare queen of foreclosures"

Do NOT follow this link or you will be banned from the site!