"To date, the largest economic effects of the financial turmoil appear to have been on the housing market, which, as you know, has deteriorated significantly over the past two years or so."
-Ben Bernanke, February 14, 2008
February 14, 2008
Bernanke: 2005 - Nah, there's no housing bubble. 2007: The subprime problem has been cointained. 2008: Oh, crap, whoops, my bad. We're toast.
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41 comments:
He is on crack and so is Paulson...
Now they say no recession.
http://money.cnn.com/2008/02/14/news/economy/bernanke_paulson/index.htm?cnn=yes
>
Paulson: 'The worst is just beginning'
02122008projectlifelineThe headline says it all, but I will say more. Treasury Secretary Paulson committed news in this exchange captured on YouTube, and posted at Calculated Risk (it's the second video):
Reporter: "Sir, is the worst over? Will 2008 have fewer foreclosures ... "
Paulson: "... in terms of sub-prime and the resets, the worst isn't over, the worst is just beginning. We all know that."
I hereby call for congressional
hearings on financial "expert"
abuse of glue solvents and Koolaid.
I wish he had added "Like the folks at HousingPANIC told us it was going to"
Fact: This is not a housing Bubble...this is a
Debt/Credit Bubble...thank you and good day.
I'm so sick of the GOV talking about The PROBLEM instead of the SOLUTION> ITS THE APPRAISER STUPID! We, appraisers, have become loan blessors, our independence has been squeezed out slowly and steady until we have the LARGE PROBLEM CALLED THE BUBBLE. Appraiser are supposed to be a gategeeter, instead we have become a payed shill for the lender. Independent appraisers like myself are stuck sifting the leftovers as most major banks won't dare use a competent appraiser, we won't work for their payed value pushers like eappraiseit, LSI, the list goes on. EVERY MAJOR BANK IN THE US USES AMC's WHICH SHOULD PROVE THESE BANKS HAVE NO INTEREST IN PROPERLY VALUING THEIR OWN SECURITIES> THE BANKS AND THE FED KNOW THIS AND ALLOW IT TO CONTINUE. This bubble is about VALUE< VALUE< VALUE. But yet NOBODY is talking about this.
I'm waiting for Ben to finally admit MOSTLY ALL the mortgages made over the last 5 years are toxic mortgages.
Is WSJ calling for Bernanke's head?
http://tinyurl.com/27ft42
WRONG AGAIN!!!
TONS OF PEOPLE HAVE THEIR HOMES FOR SALE IN MY NEIGHBORHOOD SO THEY CAN COLLECT THEIR ENTITLED HOUSING BUBBLE LOOT!!!
SPRING 08 BABY!!!
WE'RE CASHING OUT AND COLLECTING OUR DOUGH!!!
DOPES!!!
the big problem isn't housing, it's "market cap." i.e. the solution to this is something called dutch auction or "mark to market."
As Wikipedia notes about a sealed bid auction (a variant of a dutch auction):
"This differs from a standard English auction in that bids are not open or called; bidders must submit valuations based upon supposed market value and their own willingness to pay -- as opposed to engaging in competition through relative prices with other bidders."
I went to a "dutch auction"in Boise Idaho where the auctioner sold off surplus items.
for example, he might auction off an assortment of barbie dolls and the highest bidder got first pick, the second highest bidder got second pick, etc... until all the dolls were gone. thus, if you didn't have a preference, you got a great deal.
in the US, I think we have way too many cars, homes, stocks, etc... and we'll probably need a "dutch auction" to liquidate things quickly based on "buyer valuation" rather than "price competition" as Wikipedia notes.
the interesting twist in american bankruptcy courts is that our judges might allow home owners to "rebid" their "bad bids." Wether these "adjusted bids" show up on appraiser comps is unknown to me because making the numbers public would cause jealousy.
Paulson "We are open to suggestions" I can't believe what I am hearing.
Bernanke voice trembling, and looks sedated.
But..but...didn't the real estate economist make his monthly prediction that the market has reached 'bottom'?
MARK IN SAN DIEGO
Here in foreclosure central (San Diego), January foreclosures soared above December's rate - which set an all time record - we had 1,400 foreclosures in January, and it takes about 8 months to get to market. . .the wheels are falling off the cart quickly here - foreclosures are starting to equal county sales (about 2000 in January). . .Paulson "the worst is just beginning" he must have looked at SoCal and Arizona stats. . .I now give a 3% chance to a real depression - usually my forecast is 1%.
I have some doubt that Paulson
finished the ninth grade.
He takes 100 words and 100 ahh's
to say ten real words.
Maybe his mill diploma is
from Real High School.
He was asked today for a one-word
answer, and he took 90 seconds
and 150 words to answer that
he would not say there is a housing "crisis", since he
"does not use loaded words".
Sen. Bob Bennett-UT brought up today at the Fed meeting the subject of illegal naked short selling. He told the story of a Utah business owner who purchased every single share of a company and then sat back and watched the market continue to trade shares (lots of shares) of this particular company for another couple of weeks. Counterfeit shares. Sen. Bennett's point was that it is almost impossible for anyone to get their hands on a piece of paper to prove ownership of a share anymore. It is all electronic. If I think about that, it makes me wonder, what if the whole goddamn thing is counterfeit? It would go a long way to explaining the irrational exuberance of the market over the last year.
Is this why the stock market has continued to rally? If you think housing is a Ponzi, wait until the naked short selling becomes common knowledge to little Joe6 Investor and the whole world begins running from the market.
Notice that Paulson & Bernanke choked big time on this. If they deal with this issue the whole house of cards falls.
The whole gaggle of losers involved in this meeting today remind me of kids with attention deficit disorder. Jump from one subject to another to another. No solutions to anything.
On a positive note, it has quit snowing and the sun is shining.
Jane Z
The incompetence (or outright lying) like this coming from these central bank "maestros" just proves why we need to abolish the Fed and any other central economic planning completely. The USA will not have a free market economy until this BS is removed from the system.
Let's just get it through our thick heads people. The US economy is NOT a free market economy so let's dispel any illusions that it is once and for all.
It is the Fed and the fiat dollar that create the bubbles and destroy your hard earned savings in the process.
What is with Treasury Secretary Henry 'Stammerin Hank' Paulson??
Nervous breakdown?
It's time to replace him with someone who can complete a coherent statement.
Or at least get him some medical help...
Great story in the Washington post today about how the Bush administration blocked the efforts of all 50 state attorney generals from trying to investigate mortgage fraud as far back as the year 2000. Not only is Bush not going after the fraud, he's actively blocking the states from doing it.
http://tinyurl.com/2vk7gf
Ben has a history of saying that things were much better then they actually were and now he's saying things are bad. Forget the rollar coaster, we've just jumped off the bridge and we're attached to bungee cords made in China.
Bernanke is a dunce. He's a liar. He's a dunce and a liar.
no damn it. its not the housing market. that is just one of the symptoms. the problem is the 450 to 700 trillion, with a t, derivative market....who owns it and how much is bad...technically the problem is not one of liquidity, it is about solvency...
He is anything but a Idiot, at GS he made em billions shorting the same securities he was selling world wide, not one person in the MSM will question this stuttering SOB about this cause they think he is someone to be worshipped
These Idiots are trying to hold the mountain from collapsing before the presidential election takes place.
Once the presidential election is over in November, this housing bubble will explode not deflate!!! Mark my words on that. Boy its going to be ugly. Soup lines, homeless lines, Prostitution and Crack heads will extend for blocks and blocks. Bond fires of homeless people keeping warm all over this nation during the cold winter will be the picture of the new U.S.
It will be like a movie scene right out of the movie Mad Max.
Its a bitch going from 1st World Country Status to 3rd. But nothing can save us now! In the end we will all realize how good we all really had it and blew it.
The irony of this is that all the people that claim great econcomic status and point the fingers saying I told you so will also sink when the Greater Depression
hits us. No one will be immune! So keep on saying I told you so and let it be known that your a** is also grass too.
You will also see the leaders of other nations such as Russia(Putin), Venezuela(Chavez) and Iran(Mahmoud Ahmadinejad) laughing at us as the East(Communism) begins to take world power control and as the West(Capitalism) sinks into the abyss.
In a nut shell I can summarize our nations' greatest mistake in one word hence "GREED!". Surprise? Not me!
The Fed and congress is doing a terrific job of avoiding the most toxic issue of all for banks.
BANKS HAVE NO COLLATERAL FOR A FED LOAN!
That is why they have to borrow from Dubai for 14% or sell stock for capital infusions. They have no collateral! Period!
Lowering the fed funds rate will have no impact! Here lies the real problem which is not being mentioned.
Sad! Very Sad!
WALLSTREET OBVIOUSLY DOESNT HAVE A CLUE. THEY ARE WAITING FOR BEN TO TELL THEM HOW BAD THE ECONOMY IS GOING TO BE.
Bernanke is still SOO wrong. It was not the financial turmoil that lead to a deteriorated housing market, but the housing market had to BUST all by itself after its bubble that Bernanke failed to acknowledge. The housing bust then triggered the financial crisis when big losses showed up in the mortgage market. What can we expect from a Fed boss who still has it backwards?
Keith, you wrote:
> I wish he had added "Like the folks at HousingPANIC told us it was going to"
How large is your desire of public recognition? Don't expect it from people who have a vested financial interest against it. They lie for a living.
"How large is your desire of public recognition? Don't expect it from people who have a vested financial interest against it. They lie for a living."
maybe i'm more optimstic because there is usually "public recognition" but, as we know, actions speak louder than words and that's why the status quo sticks.
I heard stammerin' Hank say: "I didn't cause this mess!"
I was like screaming at the set: "YES YOU DID!"
BTW, Dopes has a web page and blogger ID now? WAY TO GO DOPES!!
This nation and most of its citizens, residents, dwellers have no ethic, no moral, no responsibility. What it has in plenty is greed, self-centerness, ignorance, pompousness.
The housing bubble is a shiny mirror in which the Americano can look at itself and ponder upon what may the future brings upon this land of the Snapper Turtle.
A nation that mostly comprises of pigs feeding, tearing, roosting, chomping at the trough.
A nation with most of its dwellers obese, fat, diabetic, and plain ugly like a chimpanzee.
A nation where a Walmart cashier can buy a house for $500K.
A nation in which its citizen's brain IQ is lower than a snapper turtle.
A nation which rules by turkey and skunk.
The Americano nation is as toasted as a roasted armadillo skewered from mouth to ass sizzling, popping, oozing with melted golden fat over a bed of white hot charcoal.
Here was a response I received from my senator about why the government should want to buy fraudulant mortgages as part of the stimulus bill. of course he ignored that question and sent me the following:
"As I travel the state, Minnesotans have consistently shared with me their concerns about the health and direction of the economy, with jobs harder to come by, mortgage payments soaring, home values and stock prices falling and gas prices running high. Much of our economy is impacted by how people feel and how confident they are about their own financial well-being and the economy at-large. (WHY DOESN'T HE MENTION GREENSPAN'S ALLIANCE WITH NAR AND THE BANKS TO F**K US ALL?)
That is why I joined 80 of my Senate colleagues on February 7, 2008 in passing bipartisan legislation (H.R. 5140) aimed at providing a much-needed confidence boost to our economy. This bill will put money back into the pockets of hardworking middle class families and provide critical pro-growth incentives for businesses to create jobs. (A GROWING DEFICIT PUTS MONEY INTO PEOPLE'S POCKETS?) I'm particularly pleased the Senate bill includes much-needed relief for seniors and disabled veterans and will also ensure that illegal aliens will not get tax rebates. The bill was signed by the President on February 13, 2008, and the IRS has announced that it intends to send out the rebate checks starting in May."
Andrew Hac:
What you describe is the men with money and power. That is the way it has always been not just todays americans. Why would you try to belittle the rest of us that are trying to make the most of our lives?
An uneducated individual you are. Look beyond your bitterness, to the plight of all decent men.
"Why would you try to belittle the rest of us that are trying to make the most of our lives?"
because the "rest of us" enable them. the question is: "did a decent man ever exist?" christians might say "christ," for example, but I'm guessing that you're over appraising your own worth! and like a prostitute, you'd glady provide your services (evil) for a few crumbs of wealth!
however-- if you're truly educated and above it all, then please show us how you escaped from human nature! and created heaven on earth!
The academician and the shyster telling the authority it wasn't them! I can just see Paulson bonking Bernanke on the head threatening him not to say anything stupid. "But Hank, they're gonna find out!" "Just read what I wrote for you Goober!"
When buzz-saw speaks, the entire island of Bali falls to its knees in worship!
Andrew Hac,
I don't agree with all the things you said but you sure had me laughing. Good laughing poetry. Its obvious your trying to get some attention here.
Anonymous said...
>>>Paulson "We are open to suggestions" I can't believe what I am hearing.
February 14, 2008 4:59 PM
=======================
EXACTLY! and 'they' are supposed to be running our country.
Disgusting...
edd said...
>>>I have some doubt that Paulson
finished the ninth grade.
He takes 100 words and 100 ahh's
to say ten real words.
February 14, 2008 5:33 PM
========================
LOL! Thanks I needed to crack up!
White House Aides Cited for Contempt of Congress
In other news from Washington, the House has overwhelmingly endorsed contempt citations against two White House aides for their refusal to testify in the U.S. attorney firing scandal. White House Chief of Staff Joshua Bolten and former counsel Harriet Miers ignored a subpoena after President Bush claimed executive privilege protects them from testifying.
The 223-32 vote marked the first-ever contempt of Congress citations against presidential aides. Before the vote was held, all but three Republican Congress members walked out of the chamber in protest.
===========================
Thank God, the spell has been broker over the Democratic Congress and they are finally saying NO to these criminals!!!
Anonymous said...
>>>In a nut shell I can summarize our nations' greatest mistake in one word hence "GREED!". Surprise? Not me!
February 14, 2008 7:28 PM
=========================
Yep, I'm sad to say...
The a-holes in power have been using our tax payer money on military, war and surveillance to protect us against the so-called terrorists. When in fact 'they' HAVE BEEN our terrorists.
The best and only way to bring this once GREAT nation down is financially/economically! We have always been proud of being CAPITALIST. What better way to knock us OFF our high horse!
Sorry I meant to say:
Thank God, the spell has been BROKEN over the Democratic Congress and a few Republican Congresspersons.
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