Ben Bernanke delivered another rate cut…

Hermes · #1 (**permalink**) 01-30-2008, 04:31 PM

…and with that he proved again why he gives scientists a run for their money when they try to determine how far down the evolution line one human can fall. The have chosen the specimen named Ben Bernanke and he happens to be the Fed Chief of the U.S. Federal Reserve. The results are not in but so far a piece of rock seems to have a higher IQ then he has.

Ok, let’s cut the sarcasm. I think the point is made. The recent actions by Ben Bernanke demonstrate why a pure economist with no business experience should never, I mean under no circumstances, be put in a position where monetary decisions will be made that affect other people.

Bernanke is one of those individuals who hands out drugs for drug addicts so that drug abuse can be controlled. Will it solve the problem?

Of course it will not solve the problem or do you really think because you give drugs to those who are addicted they wake up one morning and decide that they are clean?

I don’t know how many times I have said it but I will say it again:

The more Bernanke, and anyone else for the matter of fact, tries to deny the markets and the economy what they want and need and in this case they want and need a correction and recession respectively the longer the problems will persist and even built up. Once the problems gather enough steam they will blow up which will make the last few weeks look like a bad joke by a poor stand-up comedian.

Markets work best with no interference, especially not from an individual who is as qualified to make monetary decisions as a goat farmer in Eastern Iraq (I did not mean to insult the goat farmer).

Would you really ask your divorce lawyer to perform open heart surgery on your new girlfriend?

Well, then why would you want Bernanke to make monetary decisions?

For some reason I just can’t get rid of the idea that Bernanke got up one day and decided that he will be remembered as the guy who engineered a depression.

Will he do so?

He is on a really good path but since he is not exactly known for wisdom and knowledge of the markets I strongly believe that he is the type of person who can’t even succeed at failure (No, that is not a compliment but the longer he is allowed to treat the economy like his playground the harder it is to come up with ways to describe his complete incompetence).

Who picked that guy anyway?

Oh, yes…I forgot. I don’t think I have to say more then that.

I don’t know what the economy has done to Ben to be abused and treated the way he does but I do hope someone will stop him on his path of destruction. I don’t know who that person may be but I think it is a bit too late anyway so how about Ben slashes rates by another 300 basis points on Monday after Super Bowl XLII.

Why?

Why not?

It really doesn’t matter anymore and maybe Ben just wants to do it bit by bit because he is afraid of what happens when he gets it down to zero…maybe negative interest rates…at least until someone will explain to him why that is not possible.

Why did equity market rally on the news before settling the session lower?

For the same reason an alcoholic is happy when you give him a bottle so he can knock himself out.

Just wait till the liquor will loose the influence and the alcoholic wakes up the next morning and has to face reality. The problem that has caused the alcoholic to drink still persists. The same holds true for the economy.

I don’t want to repeat all the things that I have previous stated and that’s why I want to leave you guys with one final question:

When are we going to fit this guy for a helmet?

Robert · #2 (**permalink**) 01-30-2008, 04:44 PM

Agreed....Also look at the dollar...I know some old folks who are scared to be in the market and depend on interest from life long savings. Well, their income just went down some more, along with the purchasing power of the dollar. Robert

[quote=Hermes;6424]…and with that he proved again why he gives scientists a run for their money when they try to determine how far down the evolution line one human can fall. The have chosen the specimen named Ben Bernanke and he happens to be the Fed Chief of the U.S. Federal Reserve. The results are not in but so far a piece of rock seems to have a higher IQ then he has.

brian · #3 (**permalink**) 01-31-2008, 04:05 AM

It seems like Ben is trying to reinvent the economic cycle by rewriting the rules on whether there should be any kind of slowdown after boom at all.

IMO it's deeply flawed - raise interest rates - get the pain over and done with now - because the longer he pushes on this policy, the worse the overall long term effects will be.

killer2021 · #4 (**permalink**) 01-31-2008, 04:26 AM

he is trying to reduce recession by creating more inflation. either way you will loose value.

Hermes · #5 (**permalink**) 01-31-2008, 07:43 AM

The problem is that Ben can't avoid teh recession but he does increase all the other problems. So, instead of one huge problem he creates more huge problems.

Maybe we should let SpongeBob head the Fed after Ben decides enough is enough and there is nothing more that even he can mess up...

Dru · #6 (**permalink**) 01-31-2008, 10:59 PM

As in Europe where they created the euro, many are convinced that North America needs to become one Union with one currency. We already have NAFTA, we are building a super highway from Mexico to Canada, We are unwilling to enforce border laws, or eliminate illegal immigration, and with the upcoming election we will soon be faced with socialized medicine where you wait in line for months and years for services. Everyone will have free medical, no mater where you came from or if you ever contributed into the system or not. The Fed is in a hurry to bring this to pass.

Hermes · #7 (**permalink**) 02-01-2008, 08:35 AM

There are plenty of problems but for some reasons the government does not want to act at all in order to even attempt to solve the issues.

The once great free market policy seems on its way out of the door (maybe it already left) and many favor the government to take severe socialist moves. Personally, I think that is pretty sad and I also think that the situation will get much worse rather than improve.

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