March 01, 2008

HousingPANIC Quote of the Day

"There will be some bank failures. I don't anticipate any serious problems … among the large, internationally active banks that make up a very substantial part of our banking system"

-Ben Bernanke, February 2008

18 comments:

Anonymous said...

Banking problems???? I thought the creation of the federal reserve was supposed to eliminate this risk??? We need a federal reserve for what reason???

Anonymous said...

When his lips are moving, you know he's lying...

Anonymous said...

Countrywide isn't internationally active, is it?

Anonymous said...

"When his lips are moving, you know he's lying..."

I watched both days and the people were asking I thought some tough questions. The quote above seemed to fit his answers because it seem like he didn't know the real answers or did not want to tell the REAL answers. I am getting the coorelation of some banks are the like the "subprime" when the 1st few banks fail the problem will be "contained" I feel like I have seen this movie before and I don't like it. The bad thing is I know I can't change the channel called "reality"

Is it over yet!

Rich in fl

lunatic fringe said...

Isn't this the same guy who said they wasn't a housing bubble? I think it's time to buy more puts on Citi...

SanDiego Renter said...

February 2009 ?!

GT said...

so every domestic bank is outted! yea i can see that

gadfly said...

Baghdad Ben says:

The infidels want to ruin the American banking system. They will fail because American banks are strong and will take over all other banks in the world. That is why we are a superpower. You ain't seen nothing yet, because the mother of all economic booms is just round the corner. Just close your eyes and listen to me.

Anonymous said...

Perhaps benny the wonder schmuck would benefit from watching this:

http://tinyurl.com/ypgr2x

Some/all/none

Learn it.

Live it.

satan said...

You guys just read it wrong.

See..

"There will be some bank failures."

Many banks might go under

"I don't anticipate any serious problems among the large, internationally active banks that make up a very substantial part of our banking system"

You should know better than to trust what I say.. suckers. When these large banks go under the federal reserve's pronouncements will be the least of your problems.

Anonymous said...

I hope WaMu will not crash until April 2008. I have 40K in CDs (5.15%) and they will mature in April.
I'll withdraw my money on the day of maturity and crash WaMu. :)

Anonymous said...

From the same man who didn't anticipate the housing bubble or subprime mess

Anonymous said...

Yea right!!!!!!!!!

And I should believe you why?


You guys lie like a rug.

Please filter these stupid posts said...

" Anonymous said...
I hope WaMu will not crash until April 2008. I have 40K in CDs (5.15%) and they will mature in April.
I'll withdraw my money on the day of maturity and crash WaMu. :)

March 02, 2008 3:41 AM"

Yeah, your $40K will be the financial linchpin for WaMu
LAUGHING OUT LOUD

Find a strong wind and urinate into it dipshit.

Keyser Soze said...

There will be some bank failures.....more like, there will be blood!

Keyser Soze said...

Not to worry Anon 3:41....I got your sarcasm, and thought it was quite funny.

Anonymous said...

sophistry, pure sophistry. it means that every major bank in the world is bankrupt.

Anonymous said...

Grandma pkk-

The reasons most people think the banking system cannot fail is that after the crash of 1929 and consequent bank runs/failures/bank holiday (closed so people could calm down and banks could get themselves together if possible), many laws were put in place to prevent banks from getting themselves into messes. I don't recall all the titles of the laws, but I believe Glass-Stiegal (sp?) was one of the laws. (The Fed was started in 1913, I think, so it couldn't save us in '29) Banks were not allowed to invest pretty much or at all; reserve requirements were usually around 19 percent, FDIC was begun. Banks were not allowed to speculate, and borrowers were scrupulously raked over the coals before they were given a loan, AND, they were local. Beginning with Reagan's administration or thereabouts, one by one these rules have been taken off the books. Accounting has gotten more creative and many loans have not been on the book and quasi banks have multiplied, WHICH WERE NOT REQUIRED TO FOLLOW ANY OR MANY OF THE RULES OF A REGULAR BANK. The degree of fast and loose has increased and banks have been free to get into many activities which have brought us into depressions in the past (I understand we had at least 6 of them).

What's happened in the last generation is everybody is still under the impression all the rules we were taught in school are still in operation, and as regulation has been dismantled most are completely unaware of possible consequences.
In fact business has been like a wayward teen, screaming about too much control...so no control, no self control, and here we are.

Do not blame the Fed for everything or expect it to rescue us. The fact that you apparently don't know any of this background (nothing personal--it's just how it is) is
part of the problem. It didn't seem important to know about or understand, right?

Most Americans have had a real anti government attitude going on for at least 20 years now...anybody out there wonder where all that noise came from and who might benefit from it...just a modern version of the robber barons..so don't expect the now Blessed Government to have the vision and ability to make everything right when American has been on one long binge and wouldn't as individuals control itself.We used to have many competent, hardworking, moderately paid, but BORING and UNAMBITIOUS civil servants who did actually pretty good work in a consistent and reliable way...Think Fema...I am bitter about hotshots and wannabee Donald Trumps marginalizing the voices of common sense; almost everything has been monetized that can be including conversation and thought...we'll see where that has taken us very soon.