This page has been archived and commenting is disabled.

Bernanke's Farewell Speech Post-Mortem: "Fed Did The Right Thing; I Hope"

Tyler Durden's picture




 

A glimpse at the wordcloud of Bernanke's farewell speech this morning tells you all you need to know about the Fed's extraordinary policies - the two most-used words are "think" and "know". From "hoping" the Fed did the right thing to explaining how Main Street "needs to understand what they did was necessary," Bernanke admits that they still have no idea how QE works "QE is at least somewhat effective... works in practice but not in theory," and almost admitted that the Fed's new plan 'forward guidance' worked in theory but not in practice. The "populist reactions" around the world to central bank interventions are "probably not avoidable," he adds, also noting in his awkward 'don't pin me down' manner that stocks are not in a bubble, but "in historical ranges."

 

 

On The Crisis...

  • *BERNANKE SAYS FED'S LENDER OF LAST RESORT ROLE IS ESSENTIAL
  • *BERNANKE SAYS HE HAD CLOSE PARTNERSHIP WITH PAULSON, GEITHNER
  • *BERNANKE SAYS BUSH GAVE PAULSON, BERNANKE LOTS OF `LEEWAY'
  • *BERNANKE AGREED WITH PAULSON, GEITHNER ON NEED FOR BANK RESCUES
  • *BERNANKE SAW NO CHANCE OF TARP PROGRAM PRIOR TO INTENSE CRISIS
  • *BERNANKE: PARLIAMENTARY SYSTEMS WERE MORE RESPONSIVE IN CRISIS
  • *BERNANKE SAYS CRISIS WASN'T CONTINUOUS BUT EBBED, FLOWED
  • *BERNANKE: MOST INTENSE PHASE OF CRISIS INVOLVED FANNIE, LEHMAN
  • *BERNANKE SAYS `MUCH OF GOOD WORK' WAS TO STABILIZE MARKETS

On Fed Independence...

  • *BERNANKE SEES NEED TO INSULATE FED FROM POLITICAL PRESSURE
  • *BERNANKE SAYS NEW REGULATION SHOULD BRING GREATER STABILITY
  • *BERNANKE SAYS FED CAN'T BEND TO SHORT RUN POLITICAL PRESSURES

On Helping Main Street...

  • *BERNANKE SAYS `PEOPLE WILL UNDERSTAND' FED TOOK NEEDED STEPS
  • *BERNANKE SAYS CRISIS ACTIONS WERE AIMED AT HELPING MAIN STREET
  • *BERNANKE SAYS FED `DID THE RIGHT THING, I HOPE'

Bernanke explains how he "hopes" they are right...

BERNANKE: So we did the right thing, I hope. We tried to do the right thing. And there certainly has been pushback. We hope that, as the economy improves and as we tell our story, and as more information comes out about, you know, why we did what we did and so on, that -- you know, that people will -- will appreciate and understand that what we did was necessary, that it was in the interest of the broader public, it was a Main Street set of actions aimed at helping the average American. And as time passes and that becomes clearer, I'm hopeful that these political concerns will wane.

  • *BERNANKE: `NOT SURPRISING' TO SEE POPULIST REACTION TO FED
  • *BERNANKE: FINANCIAL CRISES OFTEN LEAD TO POPULIST REACTIONS

Bernanke explains how the protesters need to get with the program...

BERNANKE: It's -- you know, if you look around the world, there -- there are populist reactions, you know, in most countries where there were serious financial crises, and that's probably not avoidable completely. And what we have to do is -- again, to explain what we did, why we did it, and try to win back the confidence of the -- of the public. And that's, I think, an important objective for all of us around the world.

On QE...

  • *BERNANKE SAYS FED HAS TOOLS TO TIGHTEN MONETARY POLICY      
  • *BERNANKE SAYS STUDIES SHOW QE IS AT LEAST SOMEWHAT EFFECTIVE
  • *BERNANKE SAYS QE HAS `BEEN HELPFUL'
  • *BERNANKE SAYS QE IS A `BASIC MONETARIST PRINCIPLE'
  • *BERNANKE SAYS QE FOUNDED ON `A BASIC MONETARIST PRINCIPLE'
  • *BERNANKE SAYS QE WORKS IN PRACTICE BUT NOT IN THEORY
  • *BERNANKE SAYS INFLATION NOT A SIGNIFICANT RISK OF QE
  • *BERNANKE SAYS INFLATION IS NOT A BIG RISK OF QE
  • *BERNANKE SAYS FED TOOLS EFFECTIVE EVEN WITH BIG BALANCE SHEET
  • *BERNANKE SAYS FED HAS TOOLS TO ENSURE QE ISN'T INFLATIONARY

Bernanke admits they were winging it and almost admits that forward guidance is just as unproven:

AHAMED: So, in devising QE and all these other unconventional monetary policies, were you pretty confident that the theory would work or that whatever you -- that -- going into it?

 

BERNANKE: Well, the problem with QE is that it works in practice, but it doesn't work in theory. That's...

 

AHAMED: Yeah. Right. (LAUGHTER) And the other way about forward guidance, probably.

 

BERNANKE: Right -- well, I -- I'm -- urrr

On Bubbles:

  • *BERNANKE: FED SENSITIVE TO RISK TO FINANCIAL STABILITY
  • *BERNANKE: MARKETS BROADLY WITHIN HISTORICAL RANGES
  • *BERNANKE SAYS FED LOOKING AT IMPLICATIONS OF ANY IMBALANCE

Bernanke gets entirely tongue-tied in his efforts to not admit that there is no bubble:

AHAMED: But sort of bottom line for the moment, you're not worried about too much froth in financial markets?

 

BERNANKE: Well, it's always, of course, bad luck to make any forecast about any particular market. (LAUGHTER) But the -- the markets currently seem to be broadly within -- you know, the metrics of market valuation seem to be broadly within historical ranges. The financial system is strong. The key financial institutions are well-capitalized.

On ZIRP Forever...

  • *BERNANKE NOT CONCLUDING VERY LOW RATES A `PERMANENT' CONDITION
  • *BERNANKE:BETTER BALANCE IN GROWTH COULD AVOID ZERO-LOWER-BOUND
  • *BERNANKE: FISCAL POLICY COULD HELP AVOID ZERO-LOWER BOUND

On Real Economy...

  • *BERNANKE SAYS REASONS FOR SLOW PRODUCTIVITY GROWTH NOT CLEAR
  • *BERNANKE SAYS PRODUCTIVITY INCREASE HAS BEEN VERY SLOW
  • *BERNANKE: FALL IN LABOR PARTICIPATION PARTLY LONG-TERM TREND

Bernanke explained that Main Street is just too dumb to get it...

Because my sense is, the American people -- Main Street, Wall Street -- there's still a great deal of confusion, and I think we're paying the consequences of it even today.

 

BERNANKE: Well, it was a big challenge to explain what was going on. And, you know, at the Federal Reserve, we tried to do it. We didn't always succeed, I'm sure.

  • *BERNANKE SAYS FED HAS HELPED ECONOMY, FISCAL SITUATION
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/16/2014 - 21:01 | 4339617 nope-1004
nope-1004's picture

Don't let the truth hit you on the way out, asshole.

 

Thu, 01/16/2014 - 21:55 | 4339759 VD
VD's picture

MY (POPULIST) FAREWELL TO BERNANKE: FUCK YOU

MY (POPULIST) GREETING TO MR YELLEN: FUCK YOU

Thu, 01/16/2014 - 22:26 | 4339839 EscapingProgress
EscapingProgress's picture

"there's still a great deal of confusion, and I think we're paying the consequences of it even today."

Of course, if Bernake's grand QE plan fails it will have failed because we simple proles just couldn't comprehend its elegant sophistication and sublime perfection.

Thu, 01/16/2014 - 21:02 | 4339621 Yen Cross
Yen Cross's picture

    The right thing would be for you to grab a length of sturdy rope, then thow it over a tree branch and hang yourself until dead...

Thu, 01/16/2014 - 21:19 | 4339671 satoshi101
satoshi101's picture

"The USA will pay for the rope that they will hang themselves with" - MAO

Nope, Yen, what Bernanke has done is exactly as MAO predicted in the 1940's.

Bernanke has paid for everyones rope with everyone's inheritance.

Bernanke will go off to 'paradise', my guess is the Israeli coast, for what is the purpose  of a dual-citizenship once your term of service is complete in government.

Over the years most of the Pol's I know such as Bernanke end up in beachside condos on the better beaches of Israel.

I like Israeli beaches where else can you find 20 year old babes with perfect tits carrying UZI's?

 

Thu, 01/16/2014 - 21:11 | 4339636 Yardfarmer
Yardfarmer's picture

thank you satan. thank you satan. thank you satan.http://youtu.be/C8g2nCxAVrk

Thu, 01/16/2014 - 21:12 | 4339647 sixsigma cygnus...
sixsigma cygnusatratus's picture

*BERNANKE SAYS FED HAS TOOLS TO ENSURE QE ISN'T INFLATIONARY

...perhaps that is true, if you don't include food, clothing, shelter, gas, entertainment, housing, travel, equities, bonds, residential and commericial real estate, ceramic unicorns, etc. 

Who the heck knows what the true price of anything is, anymore.

Thu, 01/16/2014 - 22:12 | 4339809 satoshi101
satoshi101's picture

We're in a DEPRESSION and of COURSE bernanke being a 'cheerleader' can't use that word.

Maybe in a few years when Bernanke is a free  man living on an Israeli Beach, he can write his memoirs and tell the truth, now he must lie.

In deflation(depression) the price of shit people don't need collapses, the shit folks need goes up, simple as that.

Bernanke's JOB, was largely to make sure the prices of HOMES didn't collapse to zero forever, and his job is MISSION-ACCOMPLISHED the HOMES are back where they were in about 2005, had HOMES not recovered then all the paper-debt would have collapsed ( mark to market ), as it stand's now the paper is back to good.

***

Food & Oil will always go up, ...

Most food in the USA is imported, and all over the world food is rising, ... all being priced in dollars.

This is called the "Reserve Currency Paradox", ... not so much to do with 'PRINTING to the Moon' the problem is that for ESSENTIALS they always rise for a reserve-currency, this is  why CHINA/RUSSIA don't want to be RESERVE-CURRENCY.

The USA doens't give a FUCK about its people, thus they choose to impose reserve-currency negatives on its people.

***

 

let's the dog&pony show continue, ... back to HILLARY 2016

Thu, 01/16/2014 - 21:13 | 4339656 Joe_in_Indiana
Joe_in_Indiana's picture

The one word missing in the word cloud "Responsibility".  Never mentioned.

Thu, 01/16/2014 - 21:15 | 4339660 Seasmoke
Seasmoke's picture

Yes tell your STORY !!! Just like all the other stories of the Tribe. 

Thu, 01/16/2014 - 21:15 | 4339663 infinity8
infinity8's picture

"See ya, wouldn't wanna be ya!"

Thu, 01/16/2014 - 21:19 | 4339679 Ham-bone
Ham-bone's picture

Once upon a time contrarians looked for the holes in the market based paradigms and attempted to be in position to profit from the re-balance.  That ended in '11.

Now, it's Bernanke and .gov telling people what to buy.  Contrarians have no trouble finding massive holes in the .gov paradigms but not profiting from the much anticipated re-balancing...this is a period where the only gain is to be with the cash printing herd.

I've been and remain wrong but seems the contrarian is being bankrupted in a well reasoned, logical but simply wrong position because the controlled prices are proving him wrong (regardless how right he "should" be in any time but this time).

Thu, 01/16/2014 - 22:02 | 4339787 satoshi101
satoshi101's picture

The maxim has always been "never fight the FED", ... are you young?

I certainly don't play the 'stock-market', but I'm old enough to understand this truth "don't fight the FED'.

The only thing new, is the new PARADIGM "FED TO THE MOON", which means DOW to moon.

But the DOW is a artificial collection of picked&chosen shit, ... meaningless but you can play the DOW like an ETF/ETN and ride the ride.

I'm old-school myself "capital preservation' and that means not losing your principal, SURE as shit, eventually the principal will be lost, ... the problem with playing the 'market' in any shape or form, you must trust the HOUSES that sell the ETN/ETF's and I don't trust them, they're all like MF-GLOBAL, ... could be gone tomorrow.

So yes, DOW-to-MOON in theory, but in reality there is no specific company? Even Vanguard or Fidelity could BK tomorrow, ...

The GUBMINT of course don't care cuz they can print USD to the MOON and get any and all money they need forever.

***

Perhaps in this "End of History", the notion of saving is done? Or investing, of course I think not, but I always ONLY cared about capital preservation, as I know that is harder than fuck, appreciation has always been the game of foolsl.

At the end  of the day, the worlds RICH made their money in LAND(real estate), sure in the last few years ASSHOLES have gotten rich by virtual money and social-networking and SPYING(google,cisco,facebook,...).

I don't think INVESTING was ever easy, but I'm sure a LOT of people who bought Real-Estate (rentals) 2008-2010 have made a lot of money, and with 4% interest rates it even makes it possible for the RENTAL-INCOME to pay the MTG. So people are making money, and building a future. Even Now.

***

There's a lot of DOOM&GLOOM here on ZH, but if I were a young kid today, I would be making ton's of money, ... I just don't care anymore about making money, ... its fucking boring.

So people are making money, and things have changed, but the only reason for DOOM&GLOOM is bumping your head against the wall  because your using OLD paradigms.

Fri, 01/17/2014 - 07:31 | 4340331 new game
new game's picture

spot on post! plus 2(lol).

RE broker 20 + yrs

Thu, 01/16/2014 - 21:23 | 4339681 Seasmoke
Seasmoke's picture

Fucking Fannie. I can't stop hearing those motherfuckers names. They keep letting servicers steal people's homes as they stay in the shadows.

Thu, 01/16/2014 - 21:50 | 4339757 satoshi101
satoshi101's picture

Hey, those 'servicers' are sending out $400 checks, and if you cash them, you have no re-course.

***

I have no pity in the system, even if your property is paid for, 100% free and clear, the INSURANCE racket, and property-tax kleptocracy, fuck you to death, .... the end result is all th same.

Everything in ameriKKKa is a FUCK. Because the USA is nation of FUCKERS.

 

 

Thu, 01/16/2014 - 21:22 | 4339685 BringOnTheAsteroid
BringOnTheAsteroid's picture

Can someone please clear this up for me. Is the recently announced taper of 10 billion on-going and cumulative so 85 becomes 75 and then 75 becomes 65 every month until the program stops or is it a one off reduction and 75 billion per month stays in place for the foreseeable future and until the next announcement.

Let's see what complete and utter confusion this question invokes.

Thu, 01/16/2014 - 21:24 | 4339694 Ham-bone
Ham-bone's picture

one off reduction but market is "anticipating" further similar cuts

Thu, 01/16/2014 - 21:45 | 4339713 satoshi101
satoshi101's picture

It's predicted the USD will continue to BOOM in 2014, if that's the case then their will be buyers of US debt, and thus QE can be tapered.

On the other hand IF ( not likely ) the USD plunges, then QE cannot be tapered.

When the world see's the dollar as the 'last man standing' on a permanent basis, they will return, as they always have.

I was hoping for a 'volcker' myself, a return to 20% rates, and the world return to USD for greed. But now is not 1970's, today with NSA/CIA hegemony the USA can force the world to run to the dollar, and give them 'negative interest rates' to boot.

 

How's that for a sick & twisted prediction?

Never underestimate the HILLARY-2016 concept that ALL OF YOUR MONEY, is HER money, and don't forget your children are her's too.

 

Thu, 01/16/2014 - 21:56 | 4339773 Ham-bone
Ham-bone's picture

"continue dollar boom"???

dollar has been making lower highs and higher lows since '08...in other words it's gone nowhere but exactly in the middle of it's range...no collapse and no boom.

Thu, 01/16/2014 - 22:22 | 4339838 satoshi101
satoshi101's picture

The USD was up 20% in 2011-2013, the world ONLY thinks SHORT-TERM.

FUCK of course I agree, in the BIG picture the USD has lost 99% of its purchasing power since 1910 ( this is also a symptom of the reserve-paradox ).

But for NOW I'm talking about NOW, and now the USD is skyrocketing, ... and on the local time  scale most are assuming it will also sky-rocket in 2014.

***

The world see's the USD go up 20% 2011-2013 and say's "I SHOULD OWN USD", and more people jump IN, ... this is good for the FED, because it means there will be spill-over to T-BILLS and T-BONDS...

Long term? I have said before and I will say again, I think HILLARY-2016 will MANDATE the IMF/SDR, the USD will be side-lined, most likely the masses will trade in 'virtual currency 2.0',

Why did the USD rise since 2011? Most likely because the USA has demonized the EURO, JPY, AUD, INR, ZAR 24/7/365, ...

What is the safe currency?  CHF, SGD, ..NOK; I like the CNY but its still not really available, if you must play CNY then SGD correlates well.

The SAFE place for money HKD, that way when the USD FAILS, your HKD becomes CNY, until then the HKD is tied to the USD.

I like CHF,SGD, NOK cuz they are 'AAA', no other currency is 'AAA'. CNY is nice, but its not freely tradeable worldwide.

CNY is a lot like BIT-COIN, you can't move large amounts IN & OUT of USD in an emergency.

 

Thu, 01/16/2014 - 22:16 | 4339818 BringOnTheAsteroid
BringOnTheAsteroid's picture

Thanks Ham-Bone

Fri, 01/17/2014 - 04:25 | 4340242 Mentaliusanything
Mentaliusanything's picture

And if the market expects further cuts, the savers can expect further ass raping. After 5 no make that 6 years I, for one find it is "irritating"

Oh and........ Shalom you motherfucker, thanks for the memories and the sleepless nights. your on the list with Paulson and timmy and fuld and Gods litlle helper and.......Yes we are going to need more lamp posts

Thu, 01/16/2014 - 21:25 | 4339697 mobius8curve
Thu, 01/16/2014 - 21:25 | 4339700 satoshi101
satoshi101's picture

Forget about BERNANKE ZERO-HEADS, turn your little eye of Sauron to YELLEN, ... fuck BERNANKE its over, ...

Bernanke 'legitimized QE FOREVER', YELLEN will 'legitimize' Negative Saving's Account's Forever

HILLARY 2016 Know your Bitch ( Know your Banker, Know Your Customer )

FORMER HILLARY ASSOCIATE CLAIMS TO HAVE BEEN HER PERSONAL HIT MAN...ADMITS TO KILLING 52 PEOPLE FOR MONEY (They also had other assassins.)
http://freedomoutpost.com/2013...

HILLARY ORDERED THE FINAL MASSACRE AT WACO
http://rense.com/general80/hil...

HILLARY AND WACO [After a 45 day standoff that Hillary worried would harm the Clinton presidency, Hillary ordered Delta Force - against the Posse Comitatus Act - to sneak into the compound and shoot all the men, women & children, then “torch the motherf*cker” in her own words.]
http://www.godlikeproductions….

HILLARY CLINTON'S LEGACY OF SCANDAL [as Secretary of State]
http://www.americanthinker.com...

CRITICS: CLINTON STATE DEPT SWEPT SEX SCANDALS UNDER THE RUG
http://www.examiner.com/articl...

HILLARY CLINTON DENIES KNOWLEDGE OF STATE DEPT SCANDALS, COVER-UPS
http://www.breitbart.com/Big-G...

HILLARY SEX SCANDAL SMOKE – THE FIRE MUST BE FOUND
http://slantedright2.blogspot….

EXPOSED: HILLARY CLINTON'S STATE DEPT SEX SCANDALS
http://conservativeangle.com/e...

HILLARY CLINTON'S LEGACY OF SCANDAL
http://www.americanthinker.com...

BILL CLINTON'S LONG HISTORY OF SEXUAL VIOLENCE
[The 30 Years of Rape You Won't Find in "My Life"]
http://www.freerepublic.com/fo...

THE STRANGE DEATH OF VINCENT FOSTER
http://theamericanchronicle.bl...

BILL & HILLARY CLINTON: A LIFE OF VIOLATING PEOPLE
http://1984arkansasmotherofthe...

Thu, 01/16/2014 - 21:30 | 4339715 tip e. canoe
tip e. canoe's picture

*BERNANKE SAYS CRISIS ACTIONS WERE AIMED AT HELPING MAIN STREET

this is based on the assumption that "MAIN STREET" is utterly and hopelessly dependent upon WALL STREET & DC for their survival.   until "MAIN STREET" understands that they are only dependent upon themselves and each other (that is, those who they choose to be dependent with), then that statement is utterly & hopelessly correct.

Thu, 01/16/2014 - 22:30 | 4339855 satoshi101
satoshi101's picture

MAIN STREET is FUCKING GOD DAMN KAPOOT

 

Probably the biggest fucking MYTH floating here on ZH is the notion of main-street.

You go to any town in ameriKKKa and you will see that MAIN-STREET is fucking gone.

Gone

1.) Ma&Pa hardware stores

2.) ma&pa drug stores

3.) ma&pa clothing stores

4.) ma&pa grocery stores

5.) local bookshops ( today they're used book shops )

I could go to 100's, but you get the idea, once upon a time KIDS all had jobs, cuz they worked the family store, today main-street family stores have all been DESTROYED.

BIG FASCIST GOVERNMENT CORPORATIONS have destroyed MAIN-STREET with the HELP of WASH-DC, Wall street ate the fucking guts out of main-street, and wall street rapes and robs the world (SQUID).

Push-Back is the USA people are miserable, that community is lost, that kids take guns to school and kill, that society collapses.

 

Fuck the  ZH MYTH that Main Street still exists, it doesn't.

 

Thu, 01/16/2014 - 23:26 | 4339974 tip e. canoe
tip e. canoe's picture

au contrare, papa, it does, if only in dreams ;~)

Fri, 01/17/2014 - 07:54 | 4340341 new game
new game's picture

i'm dreaming of a white main street, the one i used to work at. 

 

funny, i work p.t. semi retired at a small family owned business-3 family plus me.

they make the money by selling mostly imported china shit marked up 100 percent. some german high end too,

people come in and buy, because it is local and we repair and customer service is top priority.

it can be done.

and best of all i see how stupid the average person is.

really, very dumb. EXTREMLY STUPID...

feel sorry for humanity...

like to help, but it is really hard to help someone that can't help themselves.

dumbed down to the max...

very few with common sense,

same when i sold r.e. for 20 + yeaqrs...

Thu, 01/16/2014 - 22:47 | 4339890 americanspirit
americanspirit's picture

"Don't be mad at me, I'm just a well-meaning idiot. Sorry for all the pain and suffering I've caused. Please pass the caviar."

Thu, 01/16/2014 - 22:48 | 4339891 Wait What
Wait What's picture

i won't miss watching his lips quiver as he tries to lie his way through another Q&A with softball throwing, ass kissing 'journalists.'

Thu, 01/16/2014 - 22:49 | 4339895 q99x2
q99x2's picture

Arrest him. Don't let him get away.

Thu, 01/16/2014 - 23:09 | 4339936 Docnyc
Docnyc's picture

I'm growing a beard in honor of time magazine's 2009 person of the year. God willing, it will get me some jams.

Thu, 01/16/2014 - 23:48 | 4340015 Clowns on Acid
Clowns on Acid's picture

Bernanke speaks like he is abopve the fray. The wealth disparity that his QE policies have brought about not just in US but throughout the world. He is answering sopmoric questions from a MSM hack.

Easy questions for BenDover :

  1. Why have all the bankers been allowed to collect multi million bonueses when they shoudl have been out of jobs given the bankruptcy of the entire sytem?  
  2. Transportation costs have risen substantially over the past 5 years. Gas prices, toll roads, toll bridges, Amtrak train prices, city subway and bus prices.... all are up at least 50% to 100% in the last 5 years. Timing for when inflation becomes "runaway" (not yet hyper)is difficult when the US has the World reserve currency (for now anyway). Why is the Fed saying inflation is 2 % when we all know its not?
  3. Please deny that the Fed has done a $10B taper just to tap down inflationary expectations. Inflationary Expectations are the key to runaway inflation.
  4. If People begin buying today and hoarding in expectation of higher prices tomorrow. When that begins.... will Yellen's underwear starts smellin' like gefilte fish.   
Thu, 01/16/2014 - 23:55 | 4340030 mijev
mijev's picture

It is way past the time when that asshole admits that his PHD dissertation was a total fail.

Fri, 01/17/2014 - 00:02 | 4340041 Againstthelie
Againstthelie's picture

So I guess it's also populist to ask how a monetary system based on

a=b(1+c)^t with interest c>0 and t=time,

an exponential function,

can ever be stable on a limited planet.

Fri, 01/17/2014 - 00:03 | 4340045 Milton Waddams
Milton Waddams's picture

Ciao Ben,

You've been an "inspiration". See you in the Hamptons!

BERNANKE: Well, the problem with QE is that it works in practice, but it doesn't work in theory. That's

http://i.imgur.com/Ij9VxYo.jpg

*BERNANKE SAYS FED HAS HELPED ECONOMY, FISCAL SITUATION

http://i.imgur.com/ghZAFc6.png

BERNANKE: Well, it was a big challenge to explain what was going on. And, you know, at the Federal Reserve, we tried to do it. We didn't always succeed, I'm sure.
*BERNANKE SAYS CRISIS WASN'T CONTINUOUS BUT EBBED, FLOWED
*BERNANKE: MOST INTENSE PHASE OF CRISIS INVOLVED FANNIE, LEHMAN

http://i.imgur.com/F4ocRX4.jpg

*BERNANKE: FED SENSITIVE TO RISK TO FINANCIAL STABILITY
*BERNANKE: MARKETS BROADLY WITHIN HISTORICAL RANGES
*BERNANKE SAYS FED LOOKING AT IMPLICATIONS OF ANY IMBALANCE

http://i.imgur.com/OMtmYrw.jpg

Fri, 01/17/2014 - 00:31 | 4340086 Notarocketscientist
Notarocketscientist's picture

The Fed is doing what has to be done to offset the End of Growth that is caused by oil going from 12 bucks in 98 to 147 in 2008 - EVERYTHING relies on oil - and when the price jumps like that (because cheap oil is mostly gone) you get inflation across the board.

 

And because wages are falling you get a double wammy - people could afford to consume less due to energy related inflation - and now they have much lower take home income.

 

That is a DEATH SPIRAL.

 

And the Fed knows that - and they know what the end of growth means - so they are printing and running zirp.

 

Because there are no other options - collapse now and forever (as in the industrial age ends and starvation grabs hold) - or later.

 

I prefer later.  Print till the fucker falls. 

Fri, 01/17/2014 - 08:04 | 4340349 new game
new game's picture

really good point to consider. we are all fucked, just when? i agree, later.

what people don't understand is failure will be extremly ugly. since most don't miss a shower or meal and turn a thermostat, they can't comprehend what is will be like.  death for most would be an escape.

and that is exactly what will hapen. be carefull zh ers, that is not what you want, but that is the conudrum we all face. fucked now by letting the system fail or fucked later...

Fri, 01/17/2014 - 00:44 | 4340100 e_goldstein
e_goldstein's picture

One last time. Fuck you, Bernanke.

Now, please gdif you bearded cunt.

Fri, 01/17/2014 - 06:41 | 4340296 zipit
zipit's picture

DON'T WRITE IN ALL CAPS.  It's hard to read.

Fri, 01/17/2014 - 09:30 | 4340471 TrustWho
TrustWho's picture

No one discusses the one accounting rule change that is the facade for all this economic foolishness:

"Mark Assets to Market Value"....

This was the most important decision made and continues to remove reality from the current valuation. And Bernanke failed to mention and no one asked. Everyone ignores the elephant in the room!

 

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