Bernanke's State of the Economy Speech: "You are all Dead Ducks"

[FlyingSquirrel]

by Mike Whitney

http://www.informationclearinghouse.info/article19365.htm

Even veteran Fed-watchers were caught off-guard by Chairman Bernanke's performance before the Senate Banking Committee on Thursday. Bernanke was expected to make routine comments on the state of the economy but, instead, delivered a 45 minute sermon detailing the afflictions of the foundering financial system. The Senate chamber was stone-silent throughout. The gravity of the situation is finally beginning to sink in.

(snip)

We don't blame Bernanke. He's been remarkably straightforward from the very beginning and deserves credit. He's simply left with the thankless task of mopping up the ocean of red ink left behind by Greenspan. It's not his fault. He should be applauded for dispelling the decades-long illusion that a nation can borrow its way to prosperity or that chronic indebtedness is the same as real wealth. It's not; and the bill has finally come due.

(snip)

Bernanke's candor is admirable, but it is little relief for the people who will have to soldier-on through the hard times ahead. Perhaps, next time he could spare us all the lengthly oratory and just forward a brief cablegram to Congress saying something like this:

"We are deeply sorry, but we have totally fu**ed up your economy with our monetary hanky-panky. You are all in very deep Doo-doo. Prepare for the worst."

our sincerest regrets,

the Fed

[BeFree]

1. You'll not read this...

...in the Wall Street Journal. But in case you ever do, be prepared to bend over and kiss your ass goodbye!

[trthnd4jstc]

2. We will be in great trouble, but if we stick together we will....

We can pull through. Our economy may enter a depression. The signs of it are obvious to us watching it.

The causes:

1. Outsourcing
2. Lack of Government Regulation in the Macroeconomy
a. Need to Regulate the Banking Industry
b. Need to Regulate the Energy Sector
c. Need to Regulate the Military Industrial Complex
3. The Tax cuts
4. Allowing offshore tax havens
5. Allowing corporations to be treated as individuals in the courts
6. Allowing the abuse of Federal Programs, both corporate and personal welfare.
7. Not supporting a solid stable value for our dollar
8. Excessive debt, both private and public
9. Not enough savings
10.Not redistributing the wealth, allowing the rich to become excessively rich
11.Not enough loyalty of the Rich to the Working Class, and abuses from the Working Class of the Wealthy. All strata of our society have people abusing the system.
The list probably could go on......

[jimshoes]

3. If things get to the point of ruin

for the average person in America, well let's just say, I wouldn't want to be in someone like Greenspan's shoes.

[Kurovski]

4. K&R. (nt)

[Deny and Shred]

5. Negroponte can excuse companies from SEC reporting

That May 5 memo is scary. A completely legal invitation to cook the books.

JPMorgan has $7.7 trillion and Citi has 3.8 trillion of nominal values tied up in derivatives. The $9+ billion dollar write down by Citi last quarter may be the tip of the iceberg.

[melody]

6. kicking and reccing - good post n/t