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Bernanke Finally Reveals, In One Word, Why The Financial System Crashed

Tyler Durden's picture




 

Now that Ben Bernanke is no longer the head of the Fed, he can finally tell the truth about what caused the financial crash. At least that's what a packed auditorium of over 1000 people as part of the financial conference staged by National Bank of Abu Dhabi, the UAE's largest bank, was hoping for earlier today when they paid an exorbitant amount of money to hear the former chairman talk.

Bernanke confirmed as much when he said he could now speak more freely about the crisis than he could while at the Fed - "I can say whatever I want."

So what was the reason, according to the man who was easily the most powerful person in the world for nearly a decade?

Ready?

"Overconfidence." (no, not "weather")


Yup. That's it.

The United States became "overconfident", he said of the period before the September 2008 collapse of U.S. investment bank Lehman Brothers. That triggered a crash from which parts of the world, including the U.S. economy, have not fully recovered.

 

"This is going to sound very obvious but the first thing we learned is that the U.S. is not invulnerable to financial crises," Bernanke said.

Actually what is going to sound even more obvious, is that subprime was not contained.

But going back to Bernanke's explanation, brought to us by Reuters, we wonder: did he perhaps get into the reason for the overconfidence? Maybe such as the Fed's endless hubris in believing it knew what it was doing, when time after time and especially over the past 30 years, the US central bank has shown that all it now does is lead the nation from bubble to bubble, from crisis to crisis, and replaces one asset bubble, first the dot com, then the housing, with another, even bigger one, until we get to the biggest bubble of all time - the stock market as you see it currently, where the S&P 500 soars to all time highs and when news of an ICBM launch can barely cause a dent in a ridiculous upward ramp driven by, you guessed it, overconfidence.

Only this time it's different, because the Fed really know what it is doing. Or maybe this time is no different than any other market mania unwinding before our eyes, with the careful nurturing of the the Fed and its chairmanwoman, be it Greenspan, Bernanke or Yellen.

But has Bernanke at least learned something? After all he is supposedly a very smart man from Princeton? Why yes:

He also said he found it hard to find the right way to communicate with investors when every word was closely scrutinised. "That was actually very hard for me to get adjusted to that situation where your words have such effect. I came from the academic background and I was used to making hypothetical examples and ... I learned I can't do that because the markets do not understand hypotheticals."

 

He concluded that he should "try to simplify the message, but not simplify too much".

Oh you mean something like this, uttered literally moments ago:

  • LACKER SAYS UNEMPLOYMENT THRESHOLD CLOSE TO OBSOLETE

Thank you Fed for admitting the whole premise behind the injection of over $1 trillion in the capital markets, the Fed's "target" of 6.5% unemployment, was really a bizarro bullshit joke perpetrated on the common man, when in reality the threshold was 1900 on the S&P. Or 2000. Or 3000. Or pick some arbitrary nominal number, where people confuse paper assets inflation with real wealth.

But don't worry, it's the "overconfidence" that did us in...

And then, on to regrets - because Bernanke has a few:

"We could have done some things on the margin to mitigate somewhat the crisis."

 

"Although we have been very aggressive, I think on the monetary policy front we could have been even more aggressive."

You heard that, the $4.1 trillion balance sheet is nowhere near enough. The Fed could have blown up the final bubble even more! Because that's what you are taught on Clown Keynesian school.

But wait, because the punchline beckons:

My natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person,” Bernanke said today in his first public remarks since leaving the Fed in January, referring to the central bank’s mandate from Congress to ensure full employment and stable prices. “The complexity though arises because in order to help the average person, you have to do things -- very distasteful things -- like try to prevent some large financial companies from collapsing.”

 

“The result was there are still many people after the crisis who still feel that it was unfair that some companies got helped and small banks and small business and average families didn’t get direct help,” Bernanke said. “It’s a hard perception to break.”

So there it is: the system crashed because we were "overconfident" - nothing to do with system merely having gorged on the reactionary excess to the popping of the dot com bubble - but Bernanke is 100% certain he could have done more to help the average person, because the Fed's balance sheet trickle down eventually works. And let's not forget the "overconfidence" about containing inflation in 15 minutes or less. That one will be hilarious to watch unwind.

* * *

So how much does such profound brilliance cost?

Bernanke received at least $250,000 for his appearance.

Or, in other words, more than he was paid for one full year as Fed chairman.

And that, ladies and gentlemen, is a wrap.

 

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Tue, 03/04/2014 - 21:50 | 4510079 Cycle
Cycle's picture

Useful idiot.

Tue, 03/04/2014 - 21:53 | 4510089 steveo77
steveo77's picture

Criminal fucking pigs

 

Tue, 03/04/2014 - 21:53 | 4510090 Ned Zeppelin
Ned Zeppelin's picture

Time for Jimmy Fallon show appearance and the start of his further career in comedy.

Smug douche.

Tue, 03/04/2014 - 21:53 | 4510092 The Wisp
The Wisp's picture

So Maybe now that he is Retired.... He has time to Read Zero Hedge... Once can Only Hope...

Tue, 03/04/2014 - 22:00 | 4510105 acetinker
acetinker's picture

No, B. S. Bernanke.  It was FOMO then, it is FOMO now.  Stupid fucks don't know how to actually 'do' stuff, so they've pumped each other into a frenzy, again!

Tue, 03/04/2014 - 22:03 | 4510114 alentia
alentia's picture

Based on the quote 

 

My natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person,” Bernanke said today in his first public remarks since leaving the Fed in January, referring to the central bank’s mandate from Congress to ensure full employment and stable prices. “The complexity though arises because in order to help the average person, you have to do things -- very distasteful things -- like try to prevent some large financial companies from collapsing.”

 

"Big boys" were overconfedent and caused the collapse, Bernanke tried to help "average person", but "Big Boys" told him to help "Big Boys", so he really helped "Big Boys" and "Average Person" paid for it.

Tue, 03/04/2014 - 22:04 | 4510120 Vendetta
Vendetta's picture

They were overconfident that no one would notice the massive corruption and there would be no consequences for massive levels of corruption and fraud... so yes they were overconfident.

Tue, 03/04/2014 - 23:55 | 4510441 Yes_Questions
Yes_Questions's picture

 

 

+clarity

The FED, ONLY, is responsible for the confidence over or otherwise and clearly chooses its patrons above the payers.

 

always

 

 

 

 

Tue, 03/04/2014 - 22:04 | 4510121 Duc888
Duc888's picture

 

 

 

One word: greed.

Tue, 03/04/2014 - 22:09 | 4510143 Catullus
Catullus's picture

Wrong!

Greed is a base human emotion. It always exists. The gold standard lasted for centuries and there was plenty of greed then too.

The system crashed because it is inherently unstable.

Tue, 03/04/2014 - 23:58 | 4510453 ChargingHandle
ChargingHandle's picture

You really think greed had nothing to do with the collapse. Having worked at Merrill Lynch I have a different opinion. 

Tue, 03/04/2014 - 22:10 | 4510141 Downtoolong
Downtoolong's picture

in order to help the average person, you have to do things -- very distasteful things -- like try to prevent some large financial companies from collapsing

At least that’s what those large financial companies told me, and keep telling me. So, it must be true, right?

 

Tue, 03/04/2014 - 22:20 | 4510176 Notarocketscientist
Notarocketscientist's picture

Ben is full of shit -- and he knows it.  Here's the reason the economy crashed - and why it will eventually collapse:

 

High energy prices = less consumption because everything including the fuel in your tank costs more = layoffs = less tax revenue = government cutbacks, layoffs and debt increases = less consumption = more layoffs = less taxes =====  economic death spiral.

 

Compounding the problem is the fact that a weak labour market means real wages drop - as they are across the world right now - that means everything is more expensive and your buying power is dropping at the same time.

 

Governments recognize this and are trying to offset with debt, easy lending (they are purposely inflating bubbles), lower interest rates and money printing.

 

Of course they will fail - because the disease is expensive oil.  And there is no substitute

 

The economic death spiral will accelerate when the QE and ZIRP no longer have any effect and the confidence game collapses.

 

This moment will be known as the end of the industrial revolution by the few who survive.

 

This is not a Hollywood movie where the hero saves the day.  This is the reality we are facing.

Tue, 03/04/2014 - 22:20 | 4510178 Catullus
Catullus's picture

One word on why the system nearly collapsed: inevitable.

You can say greed or overconfidence or fraud or corruption. But a system that can overcome these things will inevitably fail. If there's no resiliency in system against the constant temptation of others to lie, cheat, or steal, then thing is poorly designed.

Even in a system where there are constant bank runs, the remaining banks or financial institutions that are not lying, cheating or stealing from their customers become stronger over time with trust. And the constant threat of bank run either prevents it from occurring or flushes the bad actors out quickly. They have been doing the opposite for over 100 years now and we're a few overconfident months, trades, deals away from causing a complete collapse.

Tue, 03/04/2014 - 22:25 | 4510202 FightingtheFed
FightingtheFed's picture

Is Ben Jewish?  Why are there seeming so many Jews at the Federal Reserve bank?

Tue, 03/04/2014 - 22:25 | 4510203 FightingtheFed
FightingtheFed's picture

Is Ben Jewish?  Why are there seeming so many Jews at the Federal Reserve bank?

Tue, 03/04/2014 - 22:31 | 4510218 Duc888
Duc888's picture

catullus:Greed is a base human emotion. It always exists. The gold standard lasted for centuries and there was plenty of greed then too.

The system crashed because it is inherently unstable.

Bullshit.

Hey moron, the Fed does not use the gold standard.

 

It's fiat.

 

It's greed.


Wed, 03/05/2014 - 01:51 | 4510687 Tall Tom
Tall Tom's picture

Greed existed during the Gold Standard.

Greed existed after the Gold Standard.

The system is inherently unstable as it is a PONZI SCHEME.

Pyramid Scemes, what a PONZI IS, become unstable after a time as it takes a larger population to support it. They depend on EXPONENTIAL GROWTH. Exponential Growth, in an adibatic system, leads to Exponential Collapse. That is just a Law of Nature.

 

PONZI SCHEMES ARE FRAUDULENT as the people whom set them up already know. That is why there are LAWS that provide penalties for people whom are caught initiating them. (e.g.  Henri Ponzi, Bernie Madoff, et al.)

 

FRAUD is the reason for the collapse as it is the underlying architechture for the PONZI SCHEME currently in operation. It is not that difficult to understand.

 

Stop being contrary, open your mind, and LEARN SOMETHING. Or be stupid and unable to learn.

 

I do not give a damn.

Wed, 03/05/2014 - 09:14 | 4511144 Catullus
Catullus's picture

Hey dipshit. That's the point. The system is poorly designed.

Tue, 03/04/2014 - 22:39 | 4510224 The Old Man
The Old Man's picture

Good timing for damage control you doughnut hole academic strawman. Just plain "no comment" would have damaged less of what's left of your inane reputation knowing from the go that decisions you made were BAD. 

Now, after the fact, after the results, after millions of people were affected through no fault of their own, you try to REASON it out in your own mind? You try and search for validity?

While Dodd/Frank is blooming thousands of lobbyist pages to continually move the bar for those that need it lowered so they can continually rape and pillage the system, please remember that all that needed to be done was for you to tell all your bosses, "No. Let them fail."  

Or simply walked away.  

What glory have you now?

Tue, 03/04/2014 - 22:35 | 4510231 gregga777
gregga777's picture

Bernanke and his entire audience of Ivy League-educated "Maroons", as Bugs Bunny would so colorfully classify them, are so out of touch, and such complete parasites, that they should all be summarily and completely removed from the gene pool.

How could anyone with a conscience pay that "book smart", "street stupid, know nothing", destructive puppet $250,000 for any reason? Yeah, I know. The $250,000 is a payoff for his many faithful years as a puppet for the "Deep State" puppeteer-gangsters. The Masters of organized crime are all in government.

Greenspan, Bernanke, Yellen, etc. Puppets. The nations premier educational institutions remove their customers brains, replacing them with a wooden facsimile. The diploma certifies them as pliable, wooden-brained puppets complete with strings.

What an utterly insane world. The US government is a massive RICO construct.

Does anyone wax nostalgic for the Anarchists?

Tue, 03/04/2014 - 22:44 | 4510264 datapanik
datapanik's picture

Carn't wait for Bernanke's book of revelations: How to Save the Universe: Becoming God in the Line of Duty. This complex man told me the hardest thing for him to do was . . . "Believe in your own lies because no else will!"

Tue, 03/04/2014 - 22:50 | 4510272 highwaytoserfdom
highwaytoserfdom's picture

overconfidence?    Encompasses  all capital vices wrath, greed, sloth, pride, lust, envy, and gluttony.  Moral hazard?

 

Is it safe to short the TBTF criminals?

 

 

Tue, 03/04/2014 - 22:50 | 4510274 kw2012
kw2012's picture

It wasn't over confidence.

 

They all knew it would collapse. But they also knew that they could make millions in personal bonuses before taxpayers got stuck with the bailouts. If anything, it was indifference to the fact that the little guy would get screwed.

Tue, 03/04/2014 - 22:50 | 4510276 Yes_Questions
Yes_Questions's picture

 

 

No, Mr. Bernanke, the "market" understands Re-Hypotheticals.

 

That'd be part of the CONfidence you're fond of conjuring as part of your excuse for doing the bidding of your owners.

Tue, 03/04/2014 - 23:02 | 4510285 syntaxterror
syntaxterror's picture

"Lehman." -- Isn't this the reason most often parroted by these bankster maggots for the tragic end of Bernanke's Bubblenomics?

Nobody said doing God's work was easy. 

Tue, 03/04/2014 - 22:59 | 4510300 economicmorphine
economicmorphine's picture

I hope the son of a bitch is overconfident right up until the moment they put the rope around his neck and the hood on his head.  Then I hope he shits himself.

Tue, 03/04/2014 - 23:02 | 4510309 dizzyfingers
dizzyfingers's picture

Who was overconfident? Not me!

Tue, 03/04/2014 - 23:14 | 4510336 Puchica
Puchica's picture

Fuck you Bernanke.

Tue, 03/04/2014 - 23:14 | 4510340 My Days Are Get...
My Days Are Getting Fewer's picture

It's all been written below and well stated.

 

BB is one very cheap whore - $250,000 to be in a room and listen to the wit and wisdom of the man who commanded the World's economy for 10 years.

He is light by at least a factor 10.  A world leader, worth his salt, would have demanded $10,000 per head x 250 = $2.5 million for an unpublished event with the proceeds paid to his Foundation.

If Jaimie is worth $20 million per year plus extras,  BB should have gotten $250,000 per head from 100 very interested persons at an event held on a private resort off-shore.

Janet is so nice - she will only ask $25 per head, after the whole deal dumps.

Tue, 03/04/2014 - 23:18 | 4510352 ramacers
ramacers's picture

this head should be in formaldehyde by now.

Tue, 03/04/2014 - 23:31 | 4510394 the grateful un...
the grateful unemployed's picture

i guess Futurama is over, but his head was certainly ready for that show

Tue, 03/04/2014 - 23:19 | 4510354 the grateful un...
the grateful unemployed's picture

Ben, have you thought about your future? I have one word for you, are you ready? PLASTICS..

from the Graduate

Tue, 03/04/2014 - 23:23 | 4510368 gregga777
gregga777's picture

The entire financial system, the entire economy, the entire government, in fact everything designed by those in the "soft sciences" fail catastrophically because they incorporate positive feedback. Any control system with positive feedback is inherently unstable and will fail catastrophically.

Positive feedback amplifies small perturbations in the system and adds it IN PHASE to the system. Think of the speed control on an engine. The system eventually oscillates out of control and fails catastrophically. This also illustrates the complete and utter bankruptcy of the vast majority of the nation's higher educational system.

In stark contrast stands the hard scientists and engineers building products that if they were to fail catastrophically would likely kill people. Think pointing the main gun on an early 20th century US Navy battleship, a hydropower station generator speed controller, aircraft flight controls, etc. Their control systems incorporate negative feedback.

A negative feedback control amplifies small perturbations to the system and adds it OUT OF PHASE to the system. Perturbations to the system are quickly damped out and disappear.

There you have it. Would you fly on an aircraft whose flight control system was designed by Federal Reserve Ph.D.'s? By politicians in general or the likes of Barack Obama? By Kathleen Sibelius and her Healthcare.gov geniuses? If the aircraft had the reliability of Microsoft Windows could it refrain from crashing long enough to takeoff? Pun intended.

What is the obvious lesson? It's okay to destroy a nation's financial system, it's economy, it's government, eventually the entire nation. Just don't kill anyone while you are at it.

Wed, 03/05/2014 - 00:05 | 4510479 Maximilien Robe...
Maximilien Robespierre's picture

Going to have to guess you are in the hard sciences to look at the situation through that lens.  There is an interesting thesis out there that actually uses electrical schematic symbols to represent shocks to the economy that you might enjoy.   Production was tied to batteries or current, warehouses were capcitors and citizens were resistors, along those lines.   Then the thesis was that adjusting the voltage, or currency, you could predict what the reaction would be mathmatically.  What you would need to stabalize it, and what you would need to disrupt it, to cause the peasants to get uncomfortable.

Wed, 03/05/2014 - 00:22 | 4510515 Radical Marijuana
Radical Marijuana's picture

QUINTUPLE FLASHBACK LINK:

http://www.conspiracyarchive.com/NWO/silent_weapons_quiet_wars.htm

Silent Weapons for Quiet Wars

"Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. ... In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. ... if balanced in no other way, will be balanced by the negation of population (war, genocide)... They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor ... War is therefore the balancing of the system by killing the true creditors (the public ...)"

Money should be a symbolic understanding of general energy systems, and money should primarily be based on energy (with matter recognized as a form of energy). However, that could not be done unless one faced one of the basic facts about energy systems, that they are controlled by their most labile components. In human terms, civilization is controlled by the people who are the best at being dishonest, and backing that up with violence. That system of staking claims, and backing those up with coercions, has driven civilization to become stark raving mad, and therefore, be headed towards self-destruction.

Since our REAL death controls were developed by the history of warfare, which enabled the War Kings to create the powers of sovereign states, whose powers were captured by the Fraud Kings, the private banks, the REAL debt controls have become systems of maximized social frauds. Since the force of governments backing up those frauds can never make them become true, governments only drive the societies in which those frauds are amplified to become more psychotically insane.

Welcome to the Bizarro Mirror World, Folks. It is guaranteed to continue to become more so in the foreseeable future. More radical truth about the political economy inside the human ecology is not allowed into our mainstream social views, therefore, no saner human ecology is possible. Rather, the de facto triumph of the banksters' fraudulence precludes understand either natural or industrial energy systems, in order to operate those as better evolutionary ecologies. The paradox of civilization is that the history of successful warfare was based upon backing up deceits with destruction, which then segued into the history of successful finance being based upon backing up frauds with force.

Wed, 03/05/2014 - 00:47 | 4510582 Maximilien Robe...
Maximilien Robespierre's picture

That's the one.  There were pictures somewhere which really drove home the whole electrical schematic concept which always are good fodder for engineers.

Whether people want to call nutty conspiracy theory or believe directly at face value, one thing is certain.  Most philosophy of modern governments start with the premise that the masses or sheep are dumb and need to be kept satiated with bread and circus.  Those are not things that are accidentally arrived at as peripheral effects of government over time, they are the absolute core of what allows leaders in either corporate or political roles to get up every morning and keep the herd in place.  Money, much like electricity is just the means to the end.  It's a method of control without direct physical contact.  Just read a few books on the concepts behind government theory and there is no conspiracy.  It's there, with quotes and bibliography to support it in plain sight.

They get their cut, you stay put and submit.

Wed, 03/05/2014 - 01:01 | 4510605 zionhead101
zionhead101's picture

"Silent Wars"

The principal idea is that these are plan's from HITLER's new world order the operation paperclip nabbed, and of course they got implemented here in the 1950's and ran well, until the Gubmint had to off shore  the jobs ( Triffen Dillema ).

Now its just FSA and keeps the proles, fed until CULLING time.

The problem of course with paradigms of circuits is that HUMAN's behave in unpredictable manner and are irrational.

Sure circuits are rational,...

But back in the 1950's Von Neuman, and Teller and all the expert's really believed in Cybernetics, it would be fine in a REAL Orwellian World,

But what we have in the world today is complete HEGEMONIC CHAOS, and its amplifying daily, there is no negative feedback correction, and its only getting worse.

All the HOT-WARS right now on the street is telling, I don't think the stock market is the barometer as its thinnly traded.

Bitcoin is probably a better measure of the pain of the masses if it was freely traded. But as you can see BTC is wildly irrational.

Wed, 03/05/2014 - 01:12 | 4510622 Maximilien Robe...
Maximilien Robespierre's picture

Folks who are new to any of this would be wise to read the works and intermingling of these three people.  Edward Bernays (watch century of self), of course Sigmund Freud and Joseph Goebbels.   The common denominator is Freud's work executed in Germany, England and the United States through Bernays.  Study that, and you will be much more enlightened about how humans are just complex animals, capable of raping and murdering just like animals in the jungle, and it takes a lot of work to keep them from slipping towards those innate tendencies.  The larger the population, the more complex the mechanisms to do so.

Wed, 03/05/2014 - 01:48 | 4510682 Radical Marijuana
Radical Marijuana's picture

Yeah, that is my view too, zionhead101: "what we have in the world today is complete HEGEMONIC CHAOS, and its amplifying daily, there is no negative feedback correction, and its only getting worse."

I believe that human beings have become too terminally sick and insane to recover. I do NOT believe that the banksters continue to comprehend and control the systems that they made and maintained. I believe that the ruling classes have become too completely criminally insane, since merely being able to be the best at dishonesty, and backing that up with violence WITHIN THE HUMAN WORLD, does not provide a good basis to cope with real problems beyond human control.

Rather, the "success" of controlling civilization with lies backed up with violence drives that society towards becoming so psychotically out of touch with reality that its madness becomes self-destructive. Every time the banksters make more personal profits from frauds, civilization as whole becomes sicker and more insane. However, nothing within the social systems of that civilization allow for it to effectively respond to that. Instead, there IS "HEGEMONIC CHAOS, and its amplifying daily ..."

Wed, 03/05/2014 - 09:13 | 4511141 insect0man
insect0man's picture

>>HUMAN's behave in unpredictable manner and are irrational

Not if they can be turned into obedient cattle.

Wed, 03/05/2014 - 01:52 | 4510669 Radical Marijuana
Radical Marijuana's picture

"Most philosophy of modern governments start with the premise that the masses or sheep are dumb ..." Yes, MR, and the greater tragedy is that the combined effects of culture and genetics appears to have made that premise the correct one!

One of the ways that I act in an extremely stupid way is that I keep on holding on to the irrational hope for some series of political miracles based upon that premise not being the correct one. However, the entrenched and well-established systems of backing up lies with violence keep on proving and reinforcing the social facts that the masses of people ARE Zombie Sheeple, who WILL be fleeced to exhaustion, and then slaughtered, (and so, I shall probably end up within that population when that happens.)

Wed, 03/05/2014 - 00:55 | 4510593 zionhead101
zionhead101's picture

"The Report from IRON MOUNTAIN"

 

Tue, 03/04/2014 - 23:24 | 4510374 fiftybagger
fiftybagger's picture

3 words: get a rope

Tue, 03/04/2014 - 23:29 | 4510387 yogibear
yogibear's picture

What a waste of money. You knew he would lie. Bernanke like the gangsters take their secrets to grave.

He knows he would discredit his fellow banksters if he told the truth.

Tue, 03/04/2014 - 23:51 | 4510427 Maximilien Robe...
Maximilien Robespierre's picture

I suspect Bernanke believes everything he says with every molecule of his existence.  He is to the philosophy of money as the pope is to Christianity.  He gets up everyday rationalizing all of his decisions around the work of great Kensayians that came before him, along with their bishops in the fed districts. Of course there are those in missionary outposts too,  within the IMF or world bank.

 

He couldn't hurt a soul physically, he is no gangster in that regard.  He is dressed in red and gold robes, carrying crosses and swirling smoke and water all over the place impressing upon the masses to settle down.   Calm down and follow him.  He knows the way.

Tue, 03/04/2014 - 23:33 | 4510396 Maximilien Robe...
Maximilien Robespierre's picture

Bernanke is a grand master in the religion of Kensayism. 

His occupation is to fool and rationalize why your submission is the lesser of all evils. 

As history is the test today, he and his brethren have succeeded in fooling enough influential people both publicly and privately that the earth is flat and you should be just fine with that.  Now back to your labor you ungrateful mob.

You who cries for your stolen interest should be grateful, for had I let the system implode, you would have been lucky to eat, let alone enjoy some semblance of a retirement.

 

You who cries foul about the big banks, for I had let the system work itself out, you wouldn't have a society left to contemplate such things, so be grateful.

 

He is in the business of intellectual propaganda at the PhD level.  Politicians, corporate leaders and the masses heard his gospel - they agreed.  And submitted.

The world is flat, and you need to get back to your work.  Enough with this prattle. Be gone!

Wed, 03/05/2014 - 00:13 | 4510493 Blood Spattered...
Blood Spattered Banner's picture

Yep. We don't have an economy based on Consumer Confidence, but rather Consumer Complacency.  We're so apathetic the government tells us to bend over and pick up a nickel while dollar bills flying over our heads. 

Tue, 03/04/2014 - 23:35 | 4510403 alfred b.
alfred b.'s picture

 

    It's real easy to be 'overconfident' when supported by a DoJ & contributor admin.!!

   ...and Ben, just like the US debt, your indebtedness to humanity can never be repaid, even in a billion years!

 

Tue, 03/04/2014 - 23:40 | 4510415 RottenAlpha
Tue, 03/04/2014 - 23:56 | 4510445 Yes_Questions
Yes_Questions's picture

 

 

Somewhere on mainstreet a lamppost is missing its bankster

Tue, 03/04/2014 - 23:58 | 4510455 mopickens
mopickens's picture

so lame this guy

Tue, 03/04/2014 - 23:59 | 4510457 Johnny Cocknballs
Johnny Cocknballs's picture

What is Project Mayhem?

Wed, 03/05/2014 - 00:22 | 4510478 Hephaestus
Hephaestus's picture

It was the weather.

Wed, 03/05/2014 - 00:20 | 4510494 Emergency Ward
Emergency Ward's picture

Payaso,
Bernanke es un triste payaso
Que oculta su fracaso
Con montañas de papel
Que le llenan de espanto

Payaso,
Es un triste payaso
Que en medio de la noche
Se pierde en la penumbra
Con su risa y su llanto

Ja Ja Ja

-- adapted from Javier Solis, "Payaso"

Clown, Bernanke is a sad clown that hides his failure with mountains of paper that fill him with terror, Clown, he's a sad clown who in the middle of the night loses himself in the shadows with his laughter and his wailing....ha ha ha

Wed, 03/05/2014 - 00:36 | 4510562 Maximilien Robe...
Maximilien Robespierre's picture

"Señores y señoras:
nosotros tenemos más influencia con sus hijos que tú tiene, pero los queremos.
Creado y regado de Los Angeles, Juana's Addicción!"

http://www.youtube.com/watch?v=ZwI02OHtZTg

Wed, 03/05/2014 - 00:35 | 4510497 Drifter
Drifter's picture

Overconfidence?

Hmmmm.... interesting way to say LOOTING, what started up big time in 2008, the final end-game LOOTING of America under so-called "crisis response" banners like "TARP"  and "LSAP" and  "Quantitative Easing".

How much American wealth has been drained from society and given to banks since '08?   $5 trillion?  $10 trillion?

Would you believe $25 trilllion ... and counting?

"That triggered a crash from which parts of the world, including the U.S. economy, have not fully recovered."

How 'bout NO RECOVERY and WORSE OFF than it was in '08?  LOWER percentage of population working, at jobs paying LESS than before, in dollars that have lost HALF their '07 value (thanks to all the damn printing).

No, it's not "overconfidence", it's flat out LOOTING ...done quite confidently, according to plan.

 

Wed, 03/05/2014 - 00:18 | 4510504 palmereldritch
palmereldritch's picture

Lucifer

Wed, 03/05/2014 - 00:21 | 4510509 windcatcher
windcatcher's picture

 

Overconfident”, the Bernank is right, it is all a con game and he is the confidence man who sold you the bunco con game with his lies. That makes overconfident a $250,000 word. Ha Ha.

Wed, 03/05/2014 - 00:19 | 4510510 windcatcher
windcatcher's picture

 

Overconfident”, the Bernank is right, it is all a con game and he is the confidence man who sold you the bunco con game with his lies. That makes overconfident a $250,000 word. Ha Ha.

Wed, 03/05/2014 - 00:27 | 4510530 NoelConfidence
NoelConfidence's picture

Before I die, I just want one ex Wall Streeter to beg me for one dollar.

Not a couple of bucks, just one.

God help that man.

Wed, 03/05/2014 - 00:36 | 4510565 silverserfer
silverserfer's picture

is it too late to name his book? How about "shake and bake!  How the banker scum create boom & bust and front run, to fleece the wealth from the sheeple and other readings." By Ben mutherfucking Bernanke AKA "lampray mouth" 

Wed, 03/05/2014 - 00:37 | 4510567 Cheyenne
Cheyenne's picture

Overconfidence? That's funny, because Ben Bernanke sat right next to Alan Greenspan and didn't disagree in the least when the latter offered a much different explanation for the meltdown:

"There was rampant fraud in a lot of what was going on in these markets… There are two fundamental reforms that we need, that is, to get adequate capital and two, to get far higher levels of enforcement of fraud statutes, existing ones, I’m not even talking about new ones. Things were being done which were certainly illegal and clearly criminal in certain cases. Fraud creates very considerable instability in competitive markets. If you cannot trust your counterparties, it won’t work. And indeed we saw that it didn’t."

http://www.youtube.com/watch?v=2WEoJVJkZfU (cue to 7:12 and observe Bernanke's reaction to this disclosure)

Wed, 03/05/2014 - 02:16 | 4510587 zionhead101
zionhead101's picture

Hey,

As long as they can print FIAT to infinity for FREE, then call it what it is confidence,

But the day that nobody wants those USD's then the confidence game is over,

 

Remember in all FRAUD you must have your SUCKER's "confidence", you don't have that, then the fraud fails.

MADOFF called the USA the biggest PONZI in world history,

Are they 'confident' hell yes, until it all collapses, and it could collapse just as quick as MT-GOX

 

Wed, 03/05/2014 - 00:53 | 4510591 Maximilien Robe...
Maximilien Robespierre's picture

I'm waiting for WB7 to roll through this thread and drop his artistic bombs all over this conversation.  You know without a doubt that the Fed masters have seen his work, shared it with one another over a laugh or drink and in the back of their head thought twice about what it is they believe in and evangelize. 

Wed, 03/05/2014 - 00:55 | 4510592 lamont cranston
lamont cranston's picture

Maybe SC will take down the "Ben Bernanke Exit" sign from the Dillon SC Exit on I-95. And, to reiterate my fondest hope for his personal hell...stuck in a MINIVAN OF SCREAMING BRATS ASKING HIM, "UNCLE BEN, WHEN DO WE GET TO SOUTH OF THE BORDER?????" Every 30 seconds for the rest of eternity. 

For non-SC-NC residents google south of the border AND YOU'LL GIT IT. 

Wed, 03/05/2014 - 01:01 | 4510601 Johnny Cocknballs
Johnny Cocknballs's picture

“I am just a banker doing God’s work.”
Lloyd Blankfein, CEO, Goldman Sachs, 2009

- He sincerely meant that, you know.  In his case, just read your Talmud.

 

Wed, 03/05/2014 - 01:41 | 4510611 knowshitsurelock
knowshitsurelock's picture

At first I thought this article was from the Onion. 

I've never seen such solidarity ever in any comments to an article here on ZH.  More up arrows on every post.  Finally something we can all agree on.

FUCK YOU BERNANKE

Wed, 03/05/2014 - 01:21 | 4510645 groundedkiwi
groundedkiwi's picture

I was so sure after reading the headline that the word was going to be GREED. Silly me

Wed, 03/05/2014 - 01:23 | 4510648 starman
starman's picture

I really wanted t read all of this post but just dont fucking care!!!!!!!!!!!!!! Fuck you Bernie!

Wed, 03/05/2014 - 01:55 | 4510653 Radical Marijuana
Radical Marijuana's picture

"confidence" and

"overconfidence"

are magical words to the banksters' figureheads.

For a typically superficial, mainstream morons' view of the Keynesian recommendations for the "solutions" to economic problems, see this BBC documentary:

http://fullepisode.info/masters-of-money-season-1-episode-1-john-maynard...

Masters of Money

 

John Maynard Keynes


Around about the 42 minute mark are the silly ideas about "animal spirits" being the related to the degree of "confidence," which point towards the overconfidence as being the irrational exuberance of too much "animal spirits." OF COURSE, THAT IS THE GOOFY WAY THAT GREENSPAN AND BERNANKE HAVE BEEN "EXPLAINING" WHAT HAPPENED, IN WAYS WHICH GOT AWAY WITH DELIBERATELY IGNORING THE MANNER IN WHICH BANKSTERS WERE ABLE TO CONTROL CREATING THE PUBLIC "MONEY" SUPPLY OUT OF NOTHING AS DEBTS.

 

It is astonishing to regard the degree to which most people can rely upon psychological explanations which deliberately ignore the ecological factors which selected for that psychology! However, of course, that makes sense since society is actually controlled by lies, backed by violence, and therefore, those who are best at being dishonest, and backing that up with violence, actually dominate society. Therefore, economics is a science in the same way that warfare is a science, so that success in economics depends upon frauds, like success in warfare depends upon deceit. Since that is the actual social situation, figureheads like those officials operating institutions like the Federal Reserve Board are necessarily professional liars and immaculate hypocrites. However, throughout many of the previous comments on Zero Hedge appear the matching shallow stupidities about curses hating the banksters, and recommending they be murdered. Unfortunately, almost none of those attitudes or recommendations ever get remotely close to understanding the deeper reasons how and why the banksters became who they are, and therefore, what it would take to do what they did better.

Meanwhile, my mantra is the money is measurement backed by murder, because the debt controls depended upon the death controls, because political economy is always inside of human ecology. Human ecology presents the full-on frontal assault of the head-on collision of natural selection with artificial selection, provoking there to exist infinite tunnels of deceits backed by destruction, and frauds backed by force. At present, economics is intellectually astonishing in the degree to which it is able to operate in manners which are deliberately divorced from its ecological environment, and therefore, economics is able to deliberately ignore ecological realities. That enables there to be magical words (like "overconfidence"), based on psychology separated from its environmental schedule of reinforcement, to be promoted as "explanations" of what happened, which get away with deliberately ignoring that there is a combined money/murder system, in which the debt controls were backed up by the death controls.

However, most of the comments on Zero Hedge that curse the banksters, or recommend that they be murdered, tend to be grossly superficial emotional responses to chronic political problems, rather than represent a better and deeper analysis of the nature of those problems. Of course, there is historical reality in the facts that the banksters are who they are because they applied the methods of organized crime to take over control of the powers of government, and that those methods included assassination of some politicians that could not be otherwise bribed or intimidated. However, most of the condemnations of the banksters made on Zero Hedge continue to be made within the frame of reference of false fundamental dichotomies, and their related impossible ideals.

Bernanke makes money promoting the banksters' bullshit, while more radical truth to critique that is still relatively useless, and socially unrewarded, especially since most of those who partially wake up to the real social situation still then continue to operate within the same old-fashioned false fundamental dichotomies, and related impossible ideals, rather than are willing to be more rigorous, by making consistent criticisms based on a more thorough intellectual scientific revolution regarding how the money systems' frauds were built on top of the murder systems' deceits.

Ironically, most of those who superficially recognize some of the psychological aspects to economics tend to deliberately ignore the most important roles that psychology plays where some people defraud or destroy other people. That supreme paradox is the crucial problem with economics, as with warfare, that successful frauds, and successful deceits, require that those doing them deliberately deny and suppress the radical truth about what they were really doing. That supreme paradox drives the social situation where people like Greenspan and Bernanke are "successful" to the degree to which they are able to be professional liars and immaculate hypocrites, who can "explain" what they were doing in ways which deliberately ignore the most important social facts about what they did.

The collective tragedy in that situation is that, through the accumulating consequences of those paradoxes, civilization is flushing itself down the toilet, while those protesting that can still not effectively resist being thus flushed away. In that context, I accept any criticism of my comment here that the paradox of civilization being dominated by legalized lies, backed by legalized violence, makes more radical truth about that reality practically pointless, within the context of that political reality. Cursing the banksters, or recommending they be murdered, so far has been based on grossly superficial analysis of the reasons how and why the banksters have succeeded in the past, and those attitudes have never provided any genuinely better resolutions to the chronic political problems so far ...

Wed, 03/05/2014 - 02:53 | 4510783 Pareto
Pareto's picture

I think most ZH'ers would agree.  The emotional response of a ZH'er in the false dichotomy you describe, is probably emotional - one arrived at from the realization of truth - but without the means to do much about it.  For me, human action is purposeful.  My action(s) are motivated by the idea of making a better life for myself, for my family, for my friends, for my neighbor.  The problem with mine and yours and everybody else's actions, however, is that not everybody is playing by the same rules.  I get pissed off (an emotional response - because thats all we have control over) when I recognize that institutions have a direct impact on my welfare (always for the worse) at the expense of me for somebody else.  While I was born free to choose, I sure haven't grown up free to choose, rather, only to choose what is offered.

Smart people figure this out early.  Idealistic people (such as myself - yup guilty) take much longer before the taste of shit in their mouthes simply becomes overwhelming - where the truth finally becomes more palpable.  ZH'ers are, for the lack of a better word, disenfranchised because they recognize a separation of whats profered as real against reality's logical inconsistencies.  Inconsistency in rules, is but one example.  But its big because its the rules that buttress forward production and exchange of scarce resources.  If some are more equal than others, then the sense of fairness, expectations, and so on, become compromised, incentives become distorted, and the moral compass loses credibility, in that its no longer a reliable source of compassion and understanding.  Humanity becomes an afterthought - a nice to have - but not a requirement for a good and decent life, because that shit no longer matters.  And yet to a ZH'er this is all that matters.

When a ZH'er says "keep stacking", or, BTFATH, or shits on the banksters, or claims he's lost his gold in a boating accident, or "Fuck you Bernanke", what he's really saying is "hey fuckers, I'm trying to eek out a living for my family and you are destroying my ability to work within the system to help others, so that I may do that with a sense of pride and ownership and dignity", all the while he recognizes that so few have so much at the expense of so many.  ZH'ers may not be offering up solutions, but they speak a language that most everyone....sooner or later....will acutely understand.  To this end, Zero Hedge is as much a fellowship - a place to glean a perspective that keeps you conscious and hopefully grounded in your own - whatever your own is.  And I hang my hat here for precisely that reason. My two cents worth Radical.  cheers.

Wed, 03/05/2014 - 07:26 | 4511005 kenezen
kenezen's picture

Your last paragraph talks about things not so forthrightly said. And one of your sentences speak immeasurable truth in response and necessary survivability in its intent. Thanks!

Wed, 03/05/2014 - 07:49 | 4511026 kenezen
kenezen's picture

Physical murder of voices is far more rare than simple financial or personal destruction of individuals through intimidation and political dissemination from information true and elevated beyond reasonable context or completely false. Our Central Government is historically no stranger to these tactics as is every Political organization in history. throughout the world. Our processes are less violent and pernicious than most others because of the attempts of our Forefathers to circumvent some tribulations with our incredible Constitution.  The financial structuring and political structuring is most always, for purposes other than benefit of private citizens!

That's why Parties are so much a part of our society. Not for choice! But so common citizens can be falsely assured they have a voice beyond the vote. The vote then confers wealth and some ,power on those who inhabit those posts for as much time as possible. (That's really why term limits failed).   

Wed, 03/05/2014 - 01:30 | 4510656 the0ther
the0ther's picture

So Ben wishes he'd had the legal capability to help out the common people? I think he might have. A few months back Max Kaiser had a guest who stated that there had been a recent change to the Fed Reserve charter. This change removed their mandate to issue currency directly to the population. 

I tried to track down and verify this claim but did not. Anyone else know about this?

Wed, 03/05/2014 - 01:51 | 4510689 TacticalZen
TacticalZen's picture

I disagree.  The one word answer is that "corruption" became the norm.  We live in an age of 21st century crony capitalism, which is a hair away from that wonderful invention of Adolph Hitler, National Socialism, their answer to the communism threat then and now.  Our society and economy is fully an Americanized version of Hitler's crony capitalism, minus the raging tyrant (for now).  Look at how companies like GE and Boeing feed off the government teat and pay no taxes.  They fully understand the game and play it well.  

Corruption in economic terms is sand in the gearbox of an economy.  Any growth that might help lift us out of this mess is lost to the inefficiencies of graft and corruption which is fully systemic and engrained.  In most countries payoffs are required to get anything done.  We are getting closer and closer to that model daily.  IMHO, it all needs to collapse in order for something better to emerge.

If you want to protest corruption, vote with your wealth, whatever it is.  Cash out your financial assets and convert into physical assets.  Payoff all debt and refuse to play.  Leave the pitcher of kool-aid for someone else.  Live under the radar and have as little to do with the electronic economy as possible.  It is amazing how much of a black market economy exists and has always existed.  Best example?  People who work under the table.  Poor people have been doing it forever.  What if everyone did?

Those earnings are then used to buy things for cash. John Galt was right.  Withhold your consent to be a slave.

Wed, 03/05/2014 - 02:02 | 4510708 Radical Marijuana
Radical Marijuana's picture

... minus the raging tyrant

(for now) ...

Wed, 03/05/2014 - 04:03 | 4510851 zebrasquid
zebrasquid's picture

She's coming....

Wed, 03/05/2014 - 07:04 | 4510979 SmallerGovNow2
SmallerGovNow2's picture

... "including" the raging tyrant ...

Wed, 03/05/2014 - 02:13 | 4510731 zionhead101
zionhead101's picture

German's LOST WW2, but the Nazi's Won.

Who were the Nazi's? They were the NEO-CON's and Christian-Zionists.

*

Had WW2 not been engineered leaving the USA intact to be the world's policeman, then the OSS/CIA would have never had the resources to rob the world blind.

WW2 brought EUROPE to its knee's and left USA as the soul manufacturing OP standing,

Then the USA colony since 1910 planted the INFINITE money-tree FIAT to infinity.

None of this would have been possible had the USA not knocked JAPAN&GERMAN to their knees and ran the world ever since.

Today, zio- billionaires are as common as fly's on shit, and zio- trillionaires hide in the dark.

Confident ? Fuck yes? Corrupt, the winner always writes the history books.

 

Wed, 03/05/2014 - 03:28 | 4510810 fijisailor
fijisailor's picture

Y.

Wed, 03/05/2014 - 08:10 | 4511051 Maximilien Robe...
Maximilien Robespierre's picture

If you want to protest corruption, vote with your wealth, whatever it is.  Cash out your financial assets and convert into physical assets.  Payoff all debt and refuse to play.  Leave the pitcher of kool-aid for someone else.  Live under the radar and have as little to do with the electronic economy as possible.  It is amazing how much of a black market economy exists and has always existed.  Best example?  People who work under the table.  Poor people have been doing it forever.  What if everyone did?

Those earnings are then used to buy things for cash. John Galt was right.  Withhold your consent to be a slave

 

Bingo.  That is the way to fight an idea with an idea.  There is a reason the preppers movement continues to grow, and it's not because they're all extremists.  They will and are being cast aside by the old system, ridiculed, perhaps hunted down and murdered under some state based reasoning that will set it back (domestic terrorism) pretense.   But prepping, going galt are just early adopters who realize this and have cognitively started to make that adjustment through ACTION not just through threatening the old system, or worse taking action against it which will not end well for them or those whom they love.

The most effective form of resistance to accomplish a personal transition back to the ways that humans took care of themselves for 99% of the 100's of thousands of years we've been upright.  Rebuild local agrarian commerce, appreciate not being cyberjacked into a terminal from sunrise to sunset and just be.  Rebuilding commerce without a system of enslavement of labor control (fiat) will be the objective, whether this is some derivative of the austrian philosophy or (gulp) "bitcoin" - I don't know.  We'll have to sort that out on the other side.

 

 

Wed, 03/05/2014 - 23:41 | 4515295 Mr. Saxby
Mr. Saxby's picture

Incompetence not corruption: We've been hearing this bullshit for 5 years now and I'm surprised that ZH falls for it. The Federal Reserve is composed of economic experts and, as such, are well versed in the causes of the Great Depression. It is simply not plausible that they didn't foresee the inevitable bubble collapse in 2008. They were well aware that Freddie Mac and Fannie Mae were funding the housing bubble via securitization, that banks had abandoned traditional lending standards, and that the average consumer was immersed in debt. For Bernanke (and others) to say that they didn't see the collapse coming, is like a gang of arson investigators claiming that they couldn't have known that putting a can of gasoline in the oven would burn the house down.

In retrospect, it's obvious that 2008 collapse was deliberate with QE being the goal. They didn't even deviate from the standard script: 1. Create crisis 2. Use crisis to justify whatever the actual goal is. The "Deep State," or whatever we're calling the coalition of elites who bought our democracy out from under us, wanted direct access to the US Treasury and judging by the massive class inequality that we're currently seeing, they succeeded beyond their wildest dreams. 

Wed, 03/05/2014 - 02:38 | 4510760 daedon
daedon's picture

Overconfident they would get away with it?

Wed, 03/05/2014 - 03:10 | 4510802 farmboy
farmboy's picture

Overconfidence is stemming from the human nature to think they can control systems like markets or economic cycles. So advanced modelling (a total timewaste in economics) and economic theories are applied to find out you have been navigating a ship on the icesee with the computer to find out when the hull cracks that it was all one big mistake.In this case the crew is also drunk.

Wed, 03/05/2014 - 03:29 | 4510821 honestann
honestann's picture

SPIN SPIN SPIN SPIN SPIN SPIN

LIES LIES LIES LIES LIES LIES LIES

And, of course payment of $250,000 for services rendered... services worth trillions to the predators-that-be and bankster-class.

But humans are too stupid to see what is in front of their faces.  Because he was paid for services rendered after he rendered them, that somehow means the payment wasn't for services rendered?  Seriously?  So if you kill someone for hire, but don't get paid until after you kill, then you didn't kill for hire?  Right.  That certainly is predator logic, alright.

When these predators get together in private, they laugh their asses off at how stupid regular people are.  They marvel at how easily humans can be manipulated with words.  The actual, physical abuse of endless theft doesn't spur humans to respond, yet a few words of blatant bullshit sets them at ease.

Humans are an insult to sheep.

Wed, 03/05/2014 - 03:30 | 4510825 zionhead101
zionhead101's picture

Tribal zio- retirement law says ...

1.) Tel-Aviv Condo at retirement,

2.) $500k/year cash equivalent USD for life, ..

3.) Free Mt-Sinai Medical for life ... air-lift included anywhere in the world

*

This shit don't come cheap,... Bernanke played, and he gets paid.

 

Wed, 03/05/2014 - 06:32 | 4510964 fijisailor
fijisailor's picture

Are you Jewish now Satoshi?

Wed, 03/05/2014 - 03:26 | 4510822 fijisailor
fijisailor's picture

It was overconfidence that an economy could be run like a mafia empire.

Wed, 03/05/2014 - 03:30 | 4510826 Problem Is
Problem Is's picture

Overconfidence?

How about the hugest Wall Street Crime Wave ever perpetrated? Right under the nose of the key regulator... Corizine's bearded bald brother...

The Bernank needs a cell with Jamie & Loyd et al doing Madoff time...

Wed, 03/05/2014 - 03:31 | 4510827 resurger
resurger's picture

Nooooo shit

 

Wed, 03/05/2014 - 04:03 | 4510850 turnoffthewater
turnoffthewater's picture

Thats why Gore created the internet so everyone would feel better after posting their displeasure with TPTB. In that way, no action is taken by the masses.

https://www.youtube.com/watch?v=_g83IfdUzcg

No don't you feel better?

Wed, 03/05/2014 - 04:10 | 4510856 zebrasquid
zebrasquid's picture

Avarice is the word..

Wed, 03/05/2014 - 04:22 | 4510864 NuYawkFrankie
NuYawkFrankie's picture

Bernanke Speaks.

Ergo Bernanke Lies.

Wed, 03/05/2014 - 04:40 | 4510878 VWAndy
VWAndy's picture

When I see that picture for some reason it reminds me of wallstreetpro2.

Wed, 03/05/2014 - 05:28 | 4510917 JPMorgan
JPMorgan's picture

And they are still overconfident today, in that they still think they can grow their way out of this. The only real growth going on is on the level of corruption and debt.

Wed, 03/05/2014 - 07:13 | 4510986 El Hosel
El Hosel's picture

"I can say whatever I want.".... Shut up Ben

Wed, 03/05/2014 - 06:04 | 4510938 yt75
yt75's picture

The reality of today's world summarized :

Oil situation :
http://i.bnet.com/blogs/laherrere_all_liquids_production_1900-2200.jpg
Leading to :
http://iiscn.files.wordpress.com/2013/07/bp-oil-price-2013.jpg

In other words current crisis is primarily a monstruous oil shock, and only the beginning.

Reminder :
Contrary to the legend on the above graph (barrel price), the first oil shock was much more the direct consequence of US 1970 oil production peak :
http://upload.wikimedia.org/wikipedia/commons/c/c5/US_Oil_Production_and_Imports_1920_to_2005.png
Associated to the rebalance of barrels revenues between majors and countries, and dropping of B Woods in 71 and associated $ devaluation.
The "embargo" an epiphenomenon, very limited, lasted 3 months, but pratical to hide US peak and "put the blame" on the Arabs.

Geopolitical summary :
http://upload.wikimedia.org/wikipedia/commons/thumb/3/35/Seal_of_United_States_Central_Command.png/768px-Seal_of_United_States_Central_Command.png

Wed, 03/05/2014 - 07:15 | 4510990 esum
esum's picture

  FRAUD

Wed, 03/05/2014 - 07:16 | 4510992 fijisailor
fijisailor's picture

Free gold will be the new money in the near future.  Get some and be solvent in that future or be left out.  Makes no difference to me.

http://fofoa.blogspot.ru/

Wed, 03/05/2014 - 07:30 | 4511009 MillionDollarBoner_
MillionDollarBoner_'s picture

The Bank of England has suspended a member of staff after investigating potential rigging of the foreign exchange market.

The UK's central bank has been reviewing whether members of its staff knew about or condoned manipulation in currency markets.

It said no decision had been taken on disciplining any of its staff and declined to comment further.

It does not condone market-rigging "whatsoever", it said in a statement.

http://www.bbc.co.uk/news/business-26450643

"It does not condone market-rigging "whatsoever", it said in a statement."

HAHAHAHAHHHHAAAAAAA

Wed, 03/05/2014 - 08:59 | 4511112 insect0man
insect0man's picture

Eff the BoE and the LIBOR rigged jackwagon they Rhode in on.

Wed, 03/05/2014 - 08:10 | 4511050 Pressfiretostart
Pressfiretostart's picture

The struggle between the people and the hatred amongst them

Is being nurtured by very specific interested parties,

It is a small, rootless, international clique that is turning the people against each other

That does not want them to have peace

It is the people who are at home nowhere and everywhere

They are the only ones who can be addressed as international elements, because they conduct their business everywhere

 

Wed, 03/05/2014 - 08:17 | 4511059 overmedicatedun...
overmedicatedundersexed's picture

how payoffs work for politicians and it seems the FED's leadership: extremely high speaking fees and books bought by the millions to be stored or burned all payoffs to those who took the it seems "legal" bribes for favors while in office, and the law is not broken. (even thought it was)...clintons for example broke when he left office now worth north of 100 mil. bush2 he's got the family money in carlyle group (sp) well he can't even speak a sentence in english (maybe in spanish he does better), but his dad got to go to japan for some big cash to give a talk.

BEN the answer you were looking for was what brought the crash in 2008= corruption and I am 100% confident in that.

Wed, 03/05/2014 - 08:56 | 4511106 insect0man
insect0man's picture

>>2008= corruption

Right on Target, Fire for Effect.

The Bush Junta received 5 million dollars from Roland Arnall, the owner of Ameriquest/Argent Mortgage, before Arnall was appointed Ambassador to the Netherlands.

And on the other side of the aisle, we see Penny Pritzker - whose Chicago Family-Owned Superior Bank went bankrupt in 2001 from its innovation in ACORN planting / sub-prime lending.

That's a whole lota FAIL that was rewarded with favors from the whores in government.

Wed, 03/05/2014 - 08:19 | 4511061 spinone
spinone's picture

Fuck You Bernanke!

Wed, 03/05/2014 - 08:19 | 4511062 Comte d'herblay
Comte d'herblay's picture

He's a good example why vigilante justice is so underrated (and coincidentally, prosecuted so aggressively) and assassins of the voluntary or paid kind need be active.

The Jewish Mafia can stride the globe with impunity, raking in that which was promised to their henchmen in government. 

Wed, 03/05/2014 - 08:28 | 4511071 irie1029
irie1029's picture

So what the fuck is it today?

Wed, 03/05/2014 - 09:31 | 4511185 homiegot
homiegot's picture

Putin

Wed, 03/05/2014 - 08:46 | 4511082 insect0man
insect0man's picture

FRAUD

Got FICO?

For thousands of loan apps at Argent Mortgage the FICO was FABRICATED. How? Because Ambassador Roland Arnall's Argent Mortgage Company (Proud Predators of the American Dream) bought the source code to Empower and altered the software to enable account execs and their minions to edit what should not have been editable before flushing their AAA sewage into the global economic infrastructure. That's how.

FRAUD - that's the word you're looking for, Bennie.

ESAD is a double entente for which the lesser known meaning is: If you do, you will.

Bon Appetit predator kike scum.

Wed, 03/05/2014 - 08:50 | 4511098 The Onion Of Tw...
The Onion Of Twickenham's picture

Hubris.

Wed, 03/05/2014 - 09:14 | 4511143 mumbo_jumbo
mumbo_jumbo's picture

cartoon thought bubble

"all i have to do is get thru this and i'm golden"

Wed, 03/05/2014 - 09:30 | 4511180 MrBoompi
MrBoompi's picture

I'm overconfident too. Overconfident Bernanke signed an oath of secrecy he will have to carry to his grave. A promise to never tell the world the truth about the Federal Reserve, who owns it, and what their real mandates are. Yellen is just the latest head stuck onto the beast from Jekyll Island.

Wed, 03/05/2014 - 09:29 | 4511182 homiegot
homiegot's picture

Are the guillotines set up and ready yet?

Wed, 03/05/2014 - 09:34 | 4511194 messystateofaffairs
messystateofaffairs's picture

The FED central bank system is a straight up con, albeit an elaborate one. At the root of the con is the goal of getting the trading public to use your form of money for trade. Then you can conjure it and charge interest and make some for yourself. Babylonian money magic. Barnanke is one of the con tribes "magicians", a skilled performing artist, whose machinations are not to be taken seriously by rational people. Is there really no limit to the stupidity of the goyim, that over a 1000 of them can be found to pay not so good money to have a tribal conartist blow smoke up their ass?

Wed, 03/05/2014 - 10:34 | 4511389 Maximilien Robe...
Maximilien Robespierre's picture

Many of the people who read this article/website are the very people who either sit within that audience or are the right hand of those 1000.   Whether their interest is in the philosophy, economics, capitalistic beliefs, it is the soup de jour of what facilitates law and order of civilization.  It's kinda like in Indiana Jones, when all the state leaders and soldiers are standing around while the ark of the covenant is opened.   You all want to be there, you all want to see what's inside, what is it that is the root of all power.  Bernanke is part of the light within the ark of the Kensayian covenant, and the closer leaders of industry and government can get to it the more wonderfully it rewards their souls.

Wed, 03/05/2014 - 09:44 | 4511227 Duude
Duude's picture

Well, he's right. Indeed overconfidence led to plenty of bad decisions being made for the sake of both social engineering the economy, and outright greed.  But I would put it another way. If the government hadn't embedded moral hazard into the housing market back in the 1990s in a desire to social engineer the economy, the housing industry wouldn't have made it so easy to game the system out of greed. One can't expect banks to act ethically if the government has already rubber-stamped it as righteous.  That is what the government did when they rewrote the charter for the GSEs with a focus on getting more poor families into homes. Allowing the GSEs to hold exponentially more sub-prime and alt-a mortgages was the one decision that every other bad decision was builit upon.

Wed, 03/05/2014 - 10:21 | 4511332 Maximilien Robe...
Maximilien Robespierre's picture

Zoom out.  Banksters = government officials and government officials = banksters.  Banking only facilitates ( like water and oil ) the fabric of power across government and the private sector.  Fiat money is a language and philosophy that maintains both the private and public sector today creating a mob structure that skims and centralizes rewards.  Throwing rocks at one and not the other is short sighted.  Zoom out.

Wed, 03/05/2014 - 10:15 | 4511314 NEOSERF
NEOSERF's picture

How about this "UNDERTRANSPARENTOVERINTERCONNECTEDLEVERAGE"...now there is a descriptive word for the reason for the crash...and nothing has been done about it.

Wed, 03/05/2014 - 10:30 | 4511373 Pullmyfinger
Pullmyfinger's picture

Ahh, you must be German.

Wed, 03/05/2014 - 10:23 | 4511342 Elliptico
Elliptico's picture

It's the "con" in " confidence."

Wed, 03/05/2014 - 12:16 | 4512009 Winston Smith 2009
Winston Smith 2009's picture

Overconfidence? Yes, in a complete garbage economic theory and the models based upon it used to manipulate the world, a theory which continues to be applied because it provides both bankers and pols with the answer they want to hear - that you can indefintely print, borrow, and spend your way to prosperity.

Wed, 03/05/2014 - 15:38 | 4513003 Bluz
Bluz's picture

Are you ready?  One word. DERIVITIVES. And that is what will cause the next one.

Wed, 03/05/2014 - 23:05 | 4515156 Reci
Reci's picture

What Bernanke means by "overconfidence" is that the Fed had too much "confidence" in a Free Market sustaining and growing the wealth of the 1%'ers and ensuring their continued rule of the planet so they will now continually and forcibly pump the markets with freshly printed money and thus actively control the continous successful destinys and plans of the elitists/criminals irregardless of the annoying failures that reality tries to employ against their faulty beliefs and self serving intentions.  For now on, everyone will depend on the government as everyone will be forced to play the corrupt stock market game (and thus depend on and desire more QE) in order to prevent the continous inflation from turning you into a pauper.  To them, if your savings aren't making them richer then you don't deserve any.  Now, this plan will ensure the middle class will be as dependent and supportive of the government and the Fed welfare as the rich corporations and the poor baby makers...A United Country!

Wed, 03/05/2014 - 23:26 | 4515250 Maximilien Robe...
Maximilien Robespierre's picture

Take a moment out of your day to watch two minutes from this scene from 300.  "Meeting the ephores."

Bernanke is one of the ephors.  Although you approach the ephors with reason and gold payment for blackmailing, the ephors must consult the gods before any war is conducted.  The ephors talk to both sides of the war, and profit from the gold and submission of both.

http://www.youtube.com/watch?feature=player_detailpage&v=PET2jzrUqDk#t=55

Same as it ever was.

Thu, 03/06/2014 - 23:04 | 4519906 tip e. canoe
tip e. canoe's picture

interesting thing about the ephors were that supposedly they were elected by the Spartans for one year terms without the opportunity of being re-elected.   and that they shared power with the 2 kings.

also interesting how their role & reputation morphed within the context of modern mythology.

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