“There’s no housing bubble . . .” – Ben Bernanke, 10/27/2005

[schizo2buyORnot]

After reading this my pessimism reached new lows. We (the US economic participants, i.e. you, I, all of us) may really be screwed.

It looks like it may really be the blind (Bernanke) leading the blind (all non-PIGS). He obviously has very little ability to project forward and make financial decisions now for what problems may lie ahead in the future.

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html

[Eugene]

Which parts of Bernanke’s speech do you disagree with?

There was and there is no nationwide housing bubble. There is a number of regional housing bubbles in California, Nevada, Arizona, Florida, and Hawaii, and to a lesser extent in the Northeast. Elsewhere in the country, price increases have been modest and explained by a combination of rising incomes and low interest rates. Even in places like Bay Area and SoCal, housing prices didn’t deviate from fundamentals until 2003-2004.

House prices aren’t growing any more, but the economy did not go into the recession and even as of Q3 2007 we are experiencing continued growth in real GDP.

The biggest thing that Bernanke didn’t see at the time was the subprime problem. Its possible that he did not appreciate the importance of mortgage equity withdrawals. That is probably not the case any more (there’s a thorough analysis of MEW and their impact on consumer spending on the Federal Reserve web site).

[Eugene]

Which parts of Bernanke’s speech do you disagree with?

There was and there is no nationwide housing bubble. There is a number of regional housing bubbles in California, Nevada, Arizona, Florida, and Hawaii, and to a lesser extent in the Northeast. Elsewhere in the country, price increases have been modest and explained by a combination of rising incomes and low interest rates. Even in places like Bay Area and SoCal, housing prices didn’t deviate from fundamentals until 2003-2004.

House prices aren’t growing any more, but the economy did not go into the recession and even as of Q3 2007 we are experiencing continued growth in real GDP.

The biggest thing that Bernanke didn’t see at the time was the subprime problem. Its possible that he did not appreciate the importance of mortgage equity withdrawals. That is probably not the case any more (there’s a thorough analysis of MEW and their impact on consumer spending on the Federal Reserve web site).

[Eugene]

Which parts of Bernanke’s speech do you disagree with?

There was and there is no nationwide housing bubble. There is a number of regional housing bubbles in California, Nevada, Arizona, Florida, and Hawaii, and to a lesser extent in the Northeast. Elsewhere in the country, price increases have been modest and explained by a combination of rising incomes and low interest rates. Even in places like Bay Area and SoCal, housing prices didn’t deviate from fundamentals until 2003-2004.

House prices aren’t growing any more, but the economy did not go into the recession and even as of Q3 2007 we are experiencing continued growth in real GDP.

The biggest thing that Bernanke didn’t see at the time was the subprime problem. Its possible that he did not appreciate the importance of mortgage equity withdrawals. That is probably not the case any more (there’s a thorough analysis of MEW and their impact on consumer spending on the Federal Reserve web site).

[Eugene]

Which parts of Bernanke’s speech do you disagree with?

There was and there is no nationwide housing bubble. There is a number of regional housing bubbles in California, Nevada, Arizona, Florida, and Hawaii, and to a lesser extent in the Northeast. Elsewhere in the country, price increases have been modest and explained by a combination of rising incomes and low interest rates. Even in places like Bay Area and SoCal, housing prices didn’t deviate from fundamentals until 2003-2004.

House prices aren’t growing any more, but the economy did not go into the recession and even as of Q3 2007 we are experiencing continued growth in real GDP.

The biggest thing that Bernanke didn’t see at the time was the subprime problem. Its possible that he did not appreciate the importance of mortgage equity withdrawals. That is probably not the case any more (there’s a thorough analysis of MEW and their impact on consumer spending on the Federal Reserve web site).

[4plexowner]

Bernanke is a Keynesian economist

In Keynesian economics ALL problems are solved by creating more printing press money – we saw 17 years of this with Greenspan – Bernanke is just continuing the status quo

Greenspan at least had some economic sense before he became Fed Chairman – read his 1966 paper on how a gold standard is necessary so the govt doesn’t screw the people out of their money via inflation (http://www.321gold.com/fed/greenspan/1966.html) – Greenspan sold his soul to the govt when he became Chairman but he is now showing his true colors again by knocking the central banks and their policies (at $100K per speech) – perhaps Greenspan is really an Austrian economist at heart?

I’m not aware of Bernanke having an economic foundation based in reality – as far as I can tell he is an academician who actually believes that Keynesian economic policies work (even though history has shown repeatedly that they don’t) – Bernanke even prides himself on believing that he understands why the Great Depression occurred – he thinks that the central bank didn’t create ENOUGH printing press money and he is determined not to make the same mistake this time around – all we can expect from Bernanke is more printing press money flooding the planet (reconstructed M-3 is currently at 15% – http://www.shadowstats.com/cgi-bin/sgs/data)

[4plexowner]

Bernanke is a Keynesian economist

In Keynesian economics ALL problems are solved by creating more printing press money – we saw 17 years of this with Greenspan – Bernanke is just continuing the status quo

Greenspan at least had some economic sense before he became Fed Chairman – read his 1966 paper on how a gold standard is necessary so the govt doesn’t screw the people out of their money via inflation (http://www.321gold.com/fed/greenspan/1966.html) – Greenspan sold his soul to the govt when he became Chairman but he is now showing his true colors again by knocking the central banks and their policies (at $100K per speech) – perhaps Greenspan is really an Austrian economist at heart?

I’m not aware of Bernanke having an economic foundation based in reality – as far as I can tell he is an academician who actually believes that Keynesian economic policies work (even though history has shown repeatedly that they don’t) – Bernanke even prides himself on believing that he understands why the Great Depression occurred – he thinks that the central bank didn’t create ENOUGH printing press money and he is determined not to make the same mistake this time around – all we can expect from Bernanke is more printing press money flooding the planet (reconstructed M-3 is currently at 15% – http://www.shadowstats.com/cgi-bin/sgs/data)

[4plexowner]

Bernanke is a Keynesian economist

In Keynesian economics ALL problems are solved by creating more printing press money – we saw 17 years of this with Greenspan – Bernanke is just continuing the status quo

Greenspan at least had some economic sense before he became Fed Chairman – read his 1966 paper on how a gold standard is necessary so the govt doesn’t screw the people out of their money via inflation (http://www.321gold.com/fed/greenspan/1966.html) – Greenspan sold his soul to the govt when he became Chairman but he is now showing his true colors again by knocking the central banks and their policies (at $100K per speech) – perhaps Greenspan is really an Austrian economist at heart?

I’m not aware of Bernanke having an economic foundation based in reality – as far as I can tell he is an academician who actually believes that Keynesian economic policies work (even though history has shown repeatedly that they don’t) – Bernanke even prides himself on believing that he understands why the Great Depression occurred – he thinks that the central bank didn’t create ENOUGH printing press money and he is determined not to make the same mistake this time around – all we can expect from Bernanke is more printing press money flooding the planet (reconstructed M-3 is currently at 15% – http://www.shadowstats.com/cgi-bin/sgs/data)

[4plexowner]

Bernanke is a Keynesian economist

In Keynesian economics ALL problems are solved by creating more printing press money – we saw 17 years of this with Greenspan – Bernanke is just continuing the status quo

Greenspan at least had some economic sense before he became Fed Chairman – read his 1966 paper on how a gold standard is necessary so the govt doesn’t screw the people out of their money via inflation (http://www.321gold.com/fed/greenspan/1966.html) – Greenspan sold his soul to the govt when he became Chairman but he is now showing his true colors again by knocking the central banks and their policies (at $100K per speech) – perhaps Greenspan is really an Austrian economist at heart?

I’m not aware of Bernanke having an economic foundation based in reality – as far as I can tell he is an academician who actually believes that Keynesian economic policies work (even though history has shown repeatedly that they don’t) – Bernanke even prides himself on believing that he understands why the Great Depression occurred – he thinks that the central bank didn’t create ENOUGH printing press money and he is determined not to make the same mistake this time around – all we can expect from Bernanke is more printing press money flooding the planet (reconstructed M-3 is currently at 15% – http://www.shadowstats.com/cgi-bin/sgs/data)

[cr]

“…a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.”

That’s a big fancy way of saying housing could plummet, or do nothing at all, and the economy and it’s potential or dismal. In other words he says absolutely nothing.

The FED has become a group of disconnected politicians like Congress, except that they have no opposing party, so regardless of the outcome of their decisions, they blow sunshine and slap each other on the asses.

“He says the Fed got it right after that boom by cutting its benchmark rate deeply in 2001..”

We’ll see if he says that in 3 years…

[cr]

“…a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.”

That’s a big fancy way of saying housing could plummet, or do nothing at all, and the economy and it’s potential or dismal. In other words he says absolutely nothing.

The FED has become a group of disconnected politicians like Congress, except that they have no opposing party, so regardless of the outcome of their decisions, they blow sunshine and slap each other on the asses.

“He says the Fed got it right after that boom by cutting its benchmark rate deeply in 2001..”

We’ll see if he says that in 3 years…

[cr]

“…a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.”

That’s a big fancy way of saying housing could plummet, or do nothing at all, and the economy and it’s potential or dismal. In other words he says absolutely nothing.

The FED has become a group of disconnected politicians like Congress, except that they have no opposing party, so regardless of the outcome of their decisions, they blow sunshine and slap each other on the asses.

“He says the Fed got it right after that boom by cutting its benchmark rate deeply in 2001..”

We’ll see if he says that in 3 years…

[cr]

“…a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.”

That’s a big fancy way of saying housing could plummet, or do nothing at all, and the economy and it’s potential or dismal. In other words he says absolutely nothing.

The FED has become a group of disconnected politicians like Congress, except that they have no opposing party, so regardless of the outcome of their decisions, they blow sunshine and slap each other on the asses.

“He says the Fed got it right after that boom by cutting its benchmark rate deeply in 2001..”

We’ll see if he says that in 3 years…

[Eugene]

Bernanke is a Keynesian economist

In Keynesian economics ALL problems are solved by creating more printing press money – we saw 17 years of this with Greenspan – Bernanke is just continuing the status quo

Printing money is pretty much the only thing Federal Reserve CAN do.

[Eugene]

Bernanke is a Keynesian economist

In Keynesian economics ALL problems are solved by creating more printing press money – we saw 17 years of this with Greenspan – Bernanke is just continuing the status quo

Printing money is pretty much the only thing Federal Reserve CAN do.

[Author]

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