What is he thinking?
    Looking at the Bernanke testimony crossing the newswire, I wonder what planet and what markets he is focusing upon. The general thesis that we are in a temporary slowdown is insane. For the past twenty years, the Fed has shown a habit of inflating bubbles, watching them pop and then inflating a new bubble. When they were inflating productive asset bubbles, we received tangible benefits (i.e. - today’s faster networking/computing power is a byproduct of all the money spent during the tech bubble). When they inflated a hard asset with no tangible benefit (i.e. - housing), we saw reckless behavior with no benefit to society as a whole. How the Fed thinks temporary stimulus will solve this problem is beyond me. The last country to see a bubble in hard assets, a crash in their market and then attempted stimulus to revive the economy was Japan. How has that worked out?
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LMAO!!! Sean, I LOVE THE JAPAN COMPARISON!!!! So on target!! Man, our country better try and recoup or we are going to seriously have some larger issues than what is already at hand. I don’t even want to know what is going to happen next year when we get new leadership in office. If the current primaries reflect anything, we are so game over.
yeah it is scary to think of things that could be coming in the future.
The only thing that I would state as a bit of clarification, and I’m happy to be pointed out if this is incorrect - but Japan never had a ‘market crash’. They had a bear market and severe contraction. But nothing that fit the definition of a market ‘crash’.
The other thing I’d state? Is that Ben is making these statements on purpose. He understands what’s coming out of his mouth is incorrect. But he’s trying to deal with a mass public, with 401k’s, that don’t understand ANYTHING when it comes to the market. If that segment panics - we’re screwed. And Ben knows it. He knows what he says will be reported from here to kingdom come.
He’s talking out the side of his mouth. He knows he’s talking this way, he’s trying to put a public face on, while he delays and puts other factors in order. Not a bad strategy considering the crisis.