Ben Bernanke FTMFW Quote Of The Day

Tyler Durden's picture

And the winner is...

  • BERNANKE: HOUSING MAY NO LONGER BE VIEWED AS SECURE INVESTMENT

That's right. He just said that. And with that, a Lewis Black moment is coming on...

He also said some other stuff.

  • BERNANKE SAYS HOUSING IMPEDING FED EFFORT TO SPUR U.S. ECONOMY
  • BERNANKE SAYS HOUSING SECTOR SUFFERS FROM `SERIOUS IMBALANCES'
  • BERNANKE SAYS HOUSING IMPEDING FED EFFORT TO SPUR U.S. ECONOMY
  • BERNANKE SPEAKS ABOUT HOUSING MARKETS IN ORLANDO, FLORIDA
  • BERNANKE: TIGHT MORTGAGE CREDIT WON'T BE EASED QUICKLY, EASILY

As a reminder, shadow inventory is now at a record high. But Cramer just called the housing bottom. For the 7th time. For the masochists among our readers, his complete comments can be found here.

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economics1996's picture

No shit, 6 million foreclosures to go.

TruthInSunshine's picture

I'd argue that the 6 million estimate is highly subject to volatility based on a now increasingly velocity of delinquencies.

At any rate, it's great news (/sarcasm/) that The Bernank has finally amended his 2005 opinion (you can watch the interviews with Steve Slieezman & Maria Bartiromo - Hilarious Bartiromo interview begins at 0:45 in below; it's mind blowing, both that a person can be so obtuse and that such an obtuse person could be the Chairman of the Non-Federal Reserve-less Non-Bank):

Bernanke's EPIC Calls, Including on Housing, Circa 2005 through 2007
Innocent Bystander's picture

or maybe that’s the best contrarian indicator we have.. A Housing Bottom at last?

naa.. who am I kidding?

 

redpill's picture

Gosh dear Fed, now what could have possibly gotten housing so out of balance hmmmmmmm?

Temporalist's picture

I've been saying for years that the Fed pushed all it's chips into RE and he is just fucking coming to grips with it? 

 

Oh and incidentally the Fed is not political in the least, totally separate from politics, is not influenced by politics at all, needs to be independent from politics, and that is why it's private and secretive.

LowProfile's picture

I say: Holy crap.  He fucking actually fucking SAID THAT?!

Is it possible he actually believed all that QE bullshit he spewed when this shit started, and that he actually thought he could fix it by printing "the right amount"?!

I find it really hard to imagine he's a true beliver, but I'm starting to wonder..!

Badabing's picture

Wasn’t it 2007 when Benny and the feds sang a tune that sounded like real estate prices will never go down?

AldousHuxley's picture

BERNANKE: HOUSING MAY NO LONGER BE VIEWED AS SECURE INVESTMENT.....

 

....so we must bailout all irresponsible banks and "homeowners" with money we don't have and MAKE HOUSING A SECURE "INVESTMENT" AGAIN so that banks can put you back into 30 year bondage and create home asset "wealth" out of thing air.

 

mortgage is typically the largest debt for working class, banks sell debt, bernanke is a bankster.

DaveyJones's picture

yurts and yogurt, that's my philosophy marty

Pinto Currency's picture

 

There are 18 million homes vacant in the US:

 

http://www.therealestatebloggers.com/housing-general/18-4-million-vacant-homes-in-the-u-s-a/

 

THe Bernank is like a pilot crawling out from the wreckage and saying to the survivors that the condition of the plane he crashed is an impediment to take-off.

Hmmm., now about your pilot's licence Bernanke....

 

engineertheeconomy's picture

Usuary / loan interest is not payable. It can never be paid, not $100 trillion, not $1. No amount of interest can be paid if it does not exist in the physical universe. It's like if the Sun borrows the Moon from the Earth, and the Earth expects 2 moons to be repaid. Where in the fuck are you going to get an extra moon Bernanke, you going to pull it out of your ass? Love it how he's playing stupid. Extremely well engineered evil.

Frummox's picture

Solar powered Yurts off the grid, with gardens.

Urban Redneck's picture

At least he has the excuse of a moral obligation to his shareholders namely Buffet, Diamon, and their slightly less TBTF brethren.  It's not like the job of Chairman & CEO of the Federal Reserve is a "public service" gig like Secretary of the Treasury (is supposed to be)...

cranky-old-geezer's picture

 

 

....so we must bailout all irresponsible banks and "homeowners"

No, just banks.  Homeowners can go fuck themselves.

Bernokio cares only about maintaining the value of mortgage paper held by banks.  Everything he has done has helped banks, not homeowners.

Fed bought boatloads of MBS to maintain the value of MBS, which helps banks and other investors like hedge funds,not homeowners.

Timmy is backstopping Fannie & Freddie paper, which helps banks and other investors like hedge funds, not homeowners.

Ben is keeping the secondary paper market inflated while the primary market sees home prices falling. 

There has been no bailout for homeowners.  Nothing has been done to reduce mortgage principal.  There's been some help on the interest side with refi's at lower interest and things like that.

So homeowners sink further underwater as mortgage balances stay the same while home values drop.

If someone defaults, the bank gets bailed out AND they get the house.

The homeowner is S.O.L.

Obama's "settlement" changes nothing ...except making it easier for banks to foreclose.

Ok, so they toss the (former) homeowner a $2k bone as they're moving out.  Wow, big help.

eatthebanksters's picture

What else can banks orignate, package and sell in such huge dollar amounts? And what product other than securitized mortgage debt can they write trillions upon trillions of derivatives contracts all the while paying themselves fat fees?  Without having any emprical evidence other than having been in real estate 31 years and knowing the size of the market, I would guess there is not a single product that creates more fees than mortgage back securities and all their derivative offshoots.  So, with the big banks technically insolvent because of their toxic assets which have not yet been marked to market, and their cash flow at the verge of being severely pinched as a result of the shrinking MBS market, The Bernank will come in on his white horse and socialize the banks huge losses buy purchasing toxic debt and laying the burden squarely at the feet of the taxpayer.  The banks will then be able to survive. on their shrinking cash flow to go an cook up some other financial nightmare. Taleb said something interesting recently; he said that the problem with socializing private debt is that the parties that were bailed out will go back and take on more new risky debt and in the end you will have much more debt than before the bailout.  Obummer and the EU pols are leading us to the biggest implosion in the history of the world.  Kyle Bass said it best when he stated that while it would be very painful, we can manage a voluntary restructuring, and, that an involuntary restructuring would be a nightmare...in so many words.  Guns, Ammo and canned food baby...the end may take 20 years to come, but with the leaders we have, you can be sure it's coming...  

TruthInSunshine's picture

I'd argue The Bernank knows what he's doing, but is a psychopath.

Before people accuse me of 'tin foil' or other such things, it's only because few people truly understand what psychopathy is that they can't recognize The Bernank (and a majority of people in his position) as such. They're not easy-to-identify-Hollywood-style villains.

ZH homework for the weekend that explains how such a large market can be so easily manipulatd (non ZH members can study this, too, for extra credit):

 

"I Am Fishead"

Transformer's picture

I would disagree with your saying the Bernank is a psychopath, although my certainty would be low.  He just doesn't seem smooth enough, or glib enough, to fit the bill.  I think he is genuine, a college professor with a theory that he has spent a lifetime developing.  His problem is that the theory doesn't seem to work.  I think he was picked for the job because of his beliefs and his stated remedies back in that famous speech in 2002 or whenever it was.  Next up is a devaluation.  He seems to be a meek, non dominating type of guy, who probably follows directions well.

Of course, no one has done the Hare test with him. 

Oracle of Kypseli's picture

He is just starting to shift blame to congress knowing that it will be over soon.

NotApplicable's picture

Hell, Benron would be lucky to pass a Turing test.

Ripped Chunk's picture

Bingo! They put an acedemic in there with no real world experience to "take the fall".

 

macholatte's picture

an acedemic in there with no real world experience

 

That IS the criteria to get the job. Has there ever been anyone in the upper reaches of the FED with any "real world experience"? Perhaps they exist in a different world.

 

Beware of the man who works hard to learn something, learns it, and finds himself no wiser than before.
Kurt Vonnegut

 

AldousHuxley's picture

federal reserve = central bank

even communist north korea has a central bank.

 

it offers banks and governments way to control the nation's economy and citizen's wealth on a global market.

Supposed to stablize the economy to prevent depressions  and hyperinflations, but today it is being misused by politicians to cover up banker's own mistaks.

TruthInSunshine's picture

A nervous, bumbling Bernank (allegedly brilliant but just not socially polished)- That's what Bernank wants you to think.

I'm only half-joking.

Wouldn't the projection of total confidence hurt, more than help, the ability of The Bernank to come off as a sympathetic figure (it's a stretch, but bare with me), and thus retain his job, if clips of him beaming arrogantly and confidently explaining things to the puppets in the Senate, in the midst of the meltdown of the American Economy, were frequently aired on State TV...errr...networks and cable news programs?

AldousHuxley's picture

Obama

 

he gets to reappoint bernanke.

 

thus fed is compromised to subsidize the US Treasury.

 

 

who is Obama's handler? His biggest donors....bankers.

UP Forester's picture

Gee, looking at the Administrations of every President since the 30's, any guesses how many appointees and undersecretaries have been members of the CFR?

MarcusLCrassus's picture

"I'd argue The Bernank knows what he's doing, but is a psychopath."

 

That type of person is called a "sociopath".  They know what they do is wrong, yet they do it anyway.  

NotApplicable's picture

My guess is that all "wrongs" are rationalized away, seen as being the cost of supporting the "greater good." To them, there is nothing wrong about sacrificing the "useless idiots" if it makes life better for the survivors.

All it takes is that first step, dehumanization of the "lesser" people. Once that's accomplished, there's no limit to its application.

Remember, they're doing "God's Work." Literally.

TruthInSunshine's picture

Is the rationalization ex post facto truly done in a conscious way, though?

Freud, in between doing some coke or morphine, would argue that a cigar can be a cigar, but can argued to be more by someone who is disingenous.

Likstane's picture

How can you watch a video from a man with an ear-ring about narcissistic psychopaths? 10 seconds was all I could do. 

TruthInSunshine's picture

So you're saying he's the problem?

Jena's picture

"I Am Fishead" is so well worth the time, TIS, thanks.  I'll ask my husband to see it this weekend.  I know he'd appreciate it, too.

AL_SWEARENGEN's picture

And didn't Bill Gross just place a big bet that the fed would be buying lots more MBS?

spondoolix's picture

Al:  remember the chinese guy in your series?  All I can remember is "Swedgin cock sucka"

chunga's picture

The government is projecting that homeownership will fall from about 60% to about 40% -- that alone is a staggering number: a 20% drop, and I'm guessing that their estimates are (as usual) too low.

But we know about 1/3rd of people don't have mortgages so when we multiply 2/3rds (the number of people with mortgages) by 1/5th (the number of people they say will lose their homes) we get 2/5ths ...40%.  Then there's some amount of people who have pre-bubble mortgages; it's probably safe to say about half the people with mortgages have defaulted or will default on them.

The banks have repeatedly called their financial junk "products." They've used the term again and again; they were "innovating" with new financial "products."

You had the balls to file the original MERS claim .. how about taking it a step further with a product liability claim?  The banks products failed about half the time: a staggering rate.  Imagine any other product that failed half the time, leading to massive damages. Lawyers would be lined up for blocks suing on theories of product liability but I haven't seen a single suit that goes after them saying "the banks created a defective product then blamed the people it injured."

It'd be as if a car company released and financed a car that blew up half the time .. then said that all the people whose cars blew up -- half of them -- used it incorrectly and should be forced to pay for the financing.  Then the lawyers for those people fell into the minutia of UCC law on the financing arrangements rather than arguing "wait .. there's no way half the cars this company builds blow up; the car itself is obviously the problem."

I’ve made some other crazy analogies like the exploding ford pinto, medical products (no check-up, no-illness required “pick-a-med” RX complete with financing – entire medical industry loses, forges, transfers nearly ALL RX pads when patients drop dead). Then there’s the tobacco settlement…lol.

Fucking Charlie Foxtrot already...

Flakmeister's picture

That was not a bad Lewis Black impersonation...

Liquid Courage's picture

I suspect he actually did believe in the beginning that the initial 700 billion hit - huge by all previous standards - would do the trick under the "get-a-bigger-hammer" theory. I think he was shocked ... shocked shitless that it didn't work and has been scrambling and improvising, with his faith in the Doctrine of the Lord Keynes crumbling ever since. Poor Ben. How does someone of his intelligence fail to see such obvious bullshit? Groupthink. Intellectual corruption.

unnamed enemy's picture

the guy is just doing his job, following orders. he is just a puppet, not the pupet master.

 

aheady's picture

Seriously. How many YEARS do we have to go on pointing that out. Christ.

aheady's picture

They're dwindling down lol

engineertheeconomy's picture

Bernanke = scam artist/puppet/damned good actor/fall guy

engineertheeconomy's picture

Bernanke = scam artist/puppet/damned good actor/fall guy

Taterboy's picture

Next thing you know he'll be wearing a Ron Paul button and hawking gold on late night TV. 

tekhneek's picture

Right? Ben... aren't investments supposed to at least maintain their value?

Shit man... you're a worse liar than... Ben... Berna... ah yeah fuck.