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Bernanke Lecture IV Decrypted: Inflation 20, Stability 17, Progress 1

Tyler Durden's picture




 

The lecture series is complete and Ben can creep back behind the green curtain once again. Today's lecture focused on the aftermath of the crisis and a quick summary of just where Bernanke believes the recovery lies - Fed 95: Government 11. Unfortunately the word 'Progress' only appears once. When we asked Wordle to consider the speech, it gave us back what appeared to be a deus-ex-machina created tear-drop shape - somewhat ironic perhaps. Interestingly the words 'Credit Backs Just Markets' were at the very top of the pyramid and that led to the 'Financial Economy' making it clear just what is going on here. In an echo back to the last lecture on the crisis itself, there is some subliminal messaging with the phrase 'Mortgage Regulators Housing Crisis' appearing spookily close together. Rest assured though, Ben is not entirely self-aggrandizing as he used the word 'tool' a magnificent 30 times. Full presentation embedded in all its glory.

 

 

Source: Wordle

Fed Lecture -Aftermath of the Crisis

 

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Thu, 03/29/2012 - 17:35 | 2301945 Buckaroo Banzai
Buckaroo Banzai's picture

LOL, he certainly is a fucking tool

Thu, 03/29/2012 - 18:07 | 2302017 TruthInSunshine
TruthInSunshine's picture

I posted this is the other CTRL+Spin article, and am just going to add it here, because I'm too tired today to write it twice.

 

One has to wonder about the quality of education at George Washington University.

It is not my intent to baselessly insult that institution, but I am shocked that not one single student challenged The Bernank on his laughable proclamation that "electronically crediting the accounts of banks in the forms of excess reserves is not printing money" given the entire foundational structure & mechanics of fractional reserve banking (and the money multiplier function along with leverage).

For now, I'll leave it at that, without even broaching how QE bond and LSAP programs run by the Fed are the functional equivalent of money printing in a fractional reserve banking system.

That The Bernank to this day makes these denials, in an attempt to buffer the criticism of his money printing ways, only lessens his credibility and exposes more people to the fraud he's helping to manage.

Thu, 03/29/2012 - 18:54 | 2302090 comrade pravda
comrade pravda's picture

If the Bernank were an honest man, .... he wouldn't be at the Fed.  However, let's suppose that Ben Shitter suffered a sudden burst of honesty before giving a speech.  This is what he might say...

Good morning.  I am Ben Shitter Bernanke.

My job is to shit Benjamins.  You know 100 dollar bills.  I shit them by the billions.  My ass is rather sore.

You, peons, don't get these Benjamins.  I give them to Wall St because Wall St owns the country.

When I'm not shitting Benjamins, I spend my time talking about responsibility and deflation and accountability and basically all bull shit that isn't true.  By the way when I got this job, I thought it was going to be because I was going to be Bull Shit Bernanke.  Actually that would've been nicer because my ass wouldn't be so sore.

Anyhow, that is it.  I shit Benjamins.  You don't get them.  End of story.

Oh yeah, I've got my face on the cover of a magazine.  They have some article with too many words that says I did some real good stuff.  It isn't true.

Thu, 03/29/2012 - 17:42 | 2301965 Racer
Racer's picture

"summary of just where Bernanke believes the recovery lies"

yes he and the eCONomy lies a LOT

Thu, 03/29/2012 - 17:43 | 2301973 There is No Spoon
There is No Spoon's picture

He's lost his mind. He seems to think he's a celebrity now, and craves the camera, and attention. He's always in the media spewing propoganda. If the Fed was so successful he wouldn't need to go around talking about it all the time. Bernanke could be replaced with a few lines of code that output either ctrl+p, or talking about ctrl+p.

Thu, 03/29/2012 - 23:51 | 2302701 XitSam
XitSam's picture

The propoganda barrage is a sign of desperation.

"Damn, all Greenspan had to do was mumble a few cryptic incantaions and the markets obeyed like he was an orchestra conductor.  And Goebbels himself told me in the séance the propoganda would work. Why is nothing working for me?"

Thu, 03/29/2012 - 17:47 | 2301978 Zero Govt
Zero Govt's picture

Bernanke Lecture IV Decrypted: Inflation 20, Stability 17, Progress 1

Achievement : 0

Bill : $3 Trillion and counting..

Conclusion : Shut the Fed

 

Thu, 03/29/2012 - 17:50 | 2301992 rebelscum1967
rebelscum1967's picture

sounds pretty bullish

Thu, 03/29/2012 - 18:02 | 2302000 slewie the pi-rat
slewie the pi-rat's picture

Stability 17,

this is theFrenchConnection

this is as good as a confession to masterminding the takedown0'DSK

is he attracted to christineL?  is he rubbing his vintage chanelBarbi in paulW's face?  stay tooned!

 

 

Thu, 03/29/2012 - 18:11 | 2302022 TruthInSunshine
TruthInSunshine's picture

The Bernank really went balls to the wall defending the whys and hows as the 'bigness' of the Fed's balance sheet today, Slew, and I interpreted his words as essentially saying that they had to suck up all the toxins back in 2008 and forward, but he almost made it seem as if he was conceding that he won't be increasing the size of it now that Plosser and others (Warsh was on Charlie Rose last night and dissing The Bernank very hard, at least very hard given that Warsh is served on the FOMC) seemed to be mounting some sort of mutiny.

Thu, 03/29/2012 - 19:49 | 2302219 JohnKozac
JohnKozac's picture

TIS, Ben has Trillions to go yet, that is one reason he fiercely defends his printing---EU banks, EU gub'mints, Japan, and of course, we have the TBTF here that will need much more, not to mention the hundreds of thousasnds of lcoal gub'mints that are lining up with their hands out.

 

Thu, 03/29/2012 - 21:43 | 2302508 derek_vineyard
derek_vineyard's picture

When O Bama re-elected the mutiny will be snuffed

Thu, 03/29/2012 - 22:28 | 2302589 nothing can go wrogn
nothing can go wrogn's picture

Watch gas prices, once they reach a certain point ($5-7/gal), Bernank will be balls deep.

Politicians that have been otherwise going along to get along will start feeling the rising heat and tension. J6P wakes up at these price levels and starts asking questions when he can't afford to drive his Escalade to the Apple store (that's also a good time to short AAPL).

Thu, 03/29/2012 - 18:14 | 2302024 4horse
4horse's picture

NO DOUBT
yet NO ACTION

SHUT DOWN THE BANKERS

The Owners of the 12 Central Banks:
- Rothschild Bank of London
- Rothschild Bank of Berlin
- Lazard Brothers of Paris
- Israel Moses Seif Banks of Italy
- Warburg Bank of Amsterdam
- Warburg Bank of Hamburg
- Lehman Brothers of New York
- Kuhn Loeb Bank of New York
- Goldman, Schs of New York
- Chase Manhattan Bank of New York

 

NO ACTION

whether there are about 300 3000 or 3000000 VERY POWERFUL__ individuals who Own The FED
http://whistleblowers.freehosting.net/federal_power.htm

SHUT THEM DOWN
   or
STFU

Thu, 03/29/2012 - 18:25 | 2302047 mr. mirbach
mr. mirbach's picture

I sure hope that Paul Brodsky rebukes this installment for us!

Thu, 03/29/2012 - 18:29 | 2302051 XitSam
XitSam's picture

Here is Peter Schiff's response to the series.

Thu, 03/29/2012 - 20:17 | 2302305 xtop23
xtop23's picture

Excellent post - It's an hour long and well worth the view.

Lengthy discussion regarding the depression, booms and busts, the inconsistencies of the FED view of a gold standard vs reality with strong examples, inflation, and even an interesting debate regarding the BLS and how it contributes to the CPI which Peter handles very well.

Thanks XitSam

Thu, 03/29/2012 - 18:32 | 2302056 Cult of Criminality
Cult of Criminality's picture

ZH , Tyler

I just cannot read it or puke right now.Thanks though, appreciate it.

 

Thu, 03/29/2012 - 18:37 | 2302060 flow5
flow5's picture

Bernanke & Co are literally dumbshits: 

As soon as Bernanke was appointed to the Chairman of the Federal Reserve, he initiated a "tight" money policy (ending the housing bubble in Feb 2006), for 29 consecutive months (out of a possible 29, or at first, sufficient to wring inflation out of the economy, but persisting until the economy plunged into a depression).

The FOMC continued to drain liquidity despite its 7 reductions in the FFR (which began on 9/18/07). I.e., despite Bear Sterns two hedge funds that collapsed on July 16, 2007,  (Bear Stearns’ two subprime hedge funds declared bankruptcy on July 31, 2007),  the FED maintained its “tight” money policy (i.e., credit easing, not quantitative easing).

Bernanke didn’t initiate an “easy” money policy until Lehman Brothers later filed for bankruptcy protection (& it was one the Federal Reserve Bank of New York’s primary dealers in the Treasury Market), on September 15, 2008.  The next day AIG’s stock dropped 60%.

By waiting to inject liquidity, risk aversion was amplified, & haircuts were increased, additional and/or a higher quality of collateral was required, liquidity mismatches grew, funding sources dried up, long-term illiquid assets went on fire-sale, a counterparties’ creditworthiness was examined more carefully, all of which lead to runs on financial companies.

Bernanke relentlessly drove the economy into a recession/depression, creating an un-employment, & under-employment rate, nightmare, etc.

 

Thu, 03/29/2012 - 22:10 | 2302555 oldman
oldman's picture

@flow5

Dude, Thanks a lot for this synopsis.

I didn't pick this tale up until september od '08 when I left the forest to visit my grandson in LA, so I never had the whole history of Ben's reign until just a few minutes ago---thanks, again.

Maybe, the shame of his first 29 months tossed him so hard on the other side of the ring that his poor brain is addled. All I remember is seeing him when he first began his propaganda for the QEing and what a really terrible liar he was. He has improved as a liar, but his brain still seems quite addled                        thank you    om

Thu, 03/29/2012 - 18:34 | 2302063 noob
noob's picture

Word vomit!!!

Thu, 03/29/2012 - 18:48 | 2302082 Uber Vandal
Uber Vandal's picture

Almost reminds me of my old Skinny Puppy CD's....

Thu, 03/29/2012 - 18:55 | 2302092 bobola
bobola's picture

In a story that sheds new light on the extent of the country’s financial crisis, Bloomberg Markets magazine reported today that the Federal Reserve lent trillions of dollars to beleaguered financial institutions, with $1.2 trillion going out on just one day in 2008.

“The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy,” Bloomberg reported today.  ”And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates.”

Bloomberg Markets said it went over 29,000 pages of Fed documents obtained under the Freedom of Information Act and central bank records of more than 21,000 transactions.

“Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse,” Bloomberg reported.

Fed Chairman Ben Bernanke had argued back in 2008 when the crisis hit that revealing borrower details would create a stigma that would have led to more banks collapsing.  And the Fed fought to keep the details of the loans, which totaled $7.77 trillion, secret long after.

http://abcnews.go.com/blogs/business/2011/11/fed-gave-banks-trillions-in-bailout-bloomberg-reports/

 

Thu, 03/29/2012 - 19:16 | 2302134 The Gooch
The Gooch's picture

The # you have reached has been decimated, robo'd, algo'd, printed, prophesized, committed to memory and instantaneously (poof!) vaporized...

"The # You Reached" (has been disconnected) - http://soundcloud.com/humboldtlagoon/the-you-have-reached

Thu, 03/29/2012 - 19:38 | 2302183 JohnKozac
JohnKozac's picture

I had to blow it up pretty big and use a magnifyiong glass, but I was finally able to see the word, "PONZI."

Thu, 03/29/2012 - 19:49 | 2302217 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The shape of the text looks like a grenade.

Thu, 03/29/2012 - 20:07 | 2302277 lsbumblebee
lsbumblebee's picture

I see "end". I see "Fed". Where's "the"?

Thu, 03/29/2012 - 20:18 | 2302309 khakuda
khakuda's picture

So many great lines, but I liked this from page 16 in particular:  "With the available supply of Treasuries and GSE securities reduced by Fed buying, investors were willing to accept lower yields."

That's like saying, "With the availability of newly constructed housing camps, Jewish citizens were willing to leave their homes."

Thu, 03/29/2012 - 21:39 | 2302500 Boxed Merlot
Boxed Merlot's picture

Actually, it appears Ben ran his speech through the software prior to actually speaking the words.

Evidently he's aware of this algo too.

What we need is a precog algo like the ones being devloped by the NSA in Utah.

C'mon folks, this is rocket science.  What do you want to do, where do you want to go? 

Our best defense and weapon is surrender.  150 years from now, what's important?

Alice in Wonderland:Alice-“What road should I take?”  Cheshire Cat- “That depends, where do you want to go?”  Alice: “I don’t know”.  Cat: “Then it doesn’t matter”.

jmo. 

Thu, 03/29/2012 - 21:39 | 2302501 peekcrackers
peekcrackers's picture

oOooOoH ben shalom bernanke drink your gin and tonica and smoke your marajuanica

Thu, 03/29/2012 - 22:23 | 2302575 uno
uno's picture

The picture of the Federal Reserve with sunlight should be changed to New Orleans after katrina hit and the levees break (thank you US Corp of Engineers)

Fri, 03/30/2012 - 00:57 | 2302761 non_anon
non_anon's picture

a balloon fool is smarter than the Bernark, yet he is the pseudo what?

Fri, 03/30/2012 - 01:01 | 2302764 PeeTee
PeeTee's picture

Anyone notice the tear drop looks like a bubble? :p

Fri, 03/30/2012 - 05:36 | 2302883 icanhasbailout
icanhasbailout's picture

I thought they were deliberately shaping the word cloud like Truck Nutz...

Fri, 03/30/2012 - 08:23 | 2303053 JaylP6
JaylP6's picture

Stock market bottom April 2012 - http://stockmarketbottom.com

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