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Bernanke

A

Anonymous

Guest
I watched Bernanke testifying to the Senate yesterday..He said he believes we have nothing to worry about for inflation- rather deflation now- until the economy starts recovering which he believes will be in 2010...

Besides outlining several of the programs the Fed and Treasury are doing to get the economy moving- he was questioned often by the Senators about why we are propping up these bad banks- and giving money to people that made bad investments (thru TARP and Fed programs)- which many see as rewarding bad behavior....

He answered by saying many oversight and regulation mistakes were made... There are too many of these "too big to fail banks"- and thier downfall could take down the countries and global economy...

He characterized the bankers as like being a neighbor- that even tho he knows its wrong- smokes in bed...He sets his house on fire and runs to your house to have you call the Fire Dept...You could just let his house burn down and punish him for his bad habits--but you know you live in a neighborhood of closely built wooden houses- and if his house is left to burn, the whole neighborhood is likely to go...
So you call the Fire Dept to put out the fire--and then go to work on putting some laws and regulations with strong penalties for smoking in bed....
 

TSR

Well-known member
Oldtimer said:
I watched Bernanke testifying to the Senate yesterday..He said he believes we have nothing to worry about for inflation- rather deflation now- until the economy starts recovering which he believes will be in 2010...

Besides outlining several of the programs the Fed and Treasury are doing to get the economy moving- he was questioned often by the Senators about why we are propping up these bad banks- and giving money to people that made bad investments (thru TARP and Fed programs)- which many see as rewarding bad behavior....

He answered by saying many oversight and regulation mistakes were made... There are too many of these "too big to fail banks"- and thier downfall could take down the countries and global economy...

He characterized the bankers as like being a neighbor- that even tho he knows its wrong- smokes in bed...He sets his house on fire and runs to your house to have you call the Fire Dept...You could just let his house burn down and punish him for his bad habits--but you know you live in a neighborhood of closely built wooden houses- and if his house is left to burn, the whole neighborhood is likely to go...
So you call the Fire Dept to put out the fire--and then go to work on putting some laws and regulations with strong penalties for smoking in bed....

I saw his testimony also and one thing that did make me feel better was his prediction about inflation not being a problem. I hope he is right. He seemed to be a very capable, intelligent man. I guess we'll see.
 

Mike

Well-known member
Ever hear the story about "Foxes" & "Henhouses"?
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Fed Tasks: Financial Institution Regulator
As a regulator for financial institutions, the Fed establishes the rules of conduct that these institutions must follow. The regional Reserve Banks then carry out the supervision and enforcement of these regulations. These regional banks monitor the activities of banks within their regions and ensure that they are operating appropriately.

The Federal Reserve also watches out for the public interest by monitoring banks that are seeking to merge with other banks or holding companies. The Fed rules on these requests according to the impact the merger will have on the local community and general public interest.

Fed Tasks: A Bank's Bank
Just as banks serve their customers, the Fed acts as a bank for banks. The Fed keeps the pipeline of transactions flowing. It processes and clears one-third of all the checks processed in the country -- that's about 20 billion checks per year. The regional Reserve Banks provide these services to the banks within their regions. The transactions are done on a fee basis, which is part of how the Federal Reserve supports itself. Banks are not required to use the Reserve Banks; they can choose to use a private competitor. This helps to ensure that the processing fees being charged are kept under control.
 

hypocritexposer

Well-known member
My credit card companies have become outrageous and I have had my cards for 15 years and always paid.

That's what paying for those that don't pay their debts entails! If you don't want to deal with inflation, then they have to "fill the pipeline", with real money.
 

kolanuraven

Well-known member
hypocritexposer said:
My credit card companies have become outrageous and I have had my cards for 15 years and always paid.

That's what paying for those that don't pay their debts entails! If you don't want to deal with inflation, then they have to "fill the pipeline", with real money.



Speaking of credit cards..................



http://www.creditmattersblog.com/2009/02/american-express-wants-to-help-you.html


Well, this sure is a different kind of deal. Instead of paying you a bonus to join, New York-based American Express will give you a $300 American Express prepaid card if you agree to say goodbye. American Express says that it is making this "deal" so that customers can "simplify" their finances. Sure. The offer, which isn't available to everyone, requires a 14-digit RSVP code. Customers are receiving this offer via U.S. Postal and email
 

TexasBred

Well-known member
kolanuraven said:
hypocritexposer said:
My credit card companies have become outrageous and I have had my cards for 15 years and always paid.

That's what paying for those that don't pay their debts entails! If you don't want to deal with inflation, then they have to "fill the pipeline", with real money.



Speaking of credit cards..................



http://www.creditmattersblog.com/2009/02/american-express-wants-to-help-you.html


Well, this sure is a different kind of deal. Instead of paying you a bonus to join, New York-based American Express will give you a $300 American Express prepaid card if you agree to say goodbye. American Express says that it is making this "deal" so that customers can "simplify" their finances. Sure. The offer, which isn't available to everyone, requires a 14-digit RSVP code. Customers are receiving this offer via U.S. Postal and email

I dont' carry American Express as I refuse to pay a fee to advertise for anyone.....but....in the past Amex was always a "pay in full" credit card. Have they changed their operations to be like Visa and MC and let people run up big balances??
 

Tex

Well-known member
kolanuraven said:
hypocritexposer said:
My credit card companies have become outrageous and I have had my cards for 15 years and always paid.

That's what paying for those that don't pay their debts entails! If you don't want to deal with inflation, then they have to "fill the pipeline", with real money.



Speaking of credit cards..................



http://www.creditmattersblog.com/2009/02/american-express-wants-to-help-you.html


Well, this sure is a different kind of deal. Instead of paying you a bonus to join, New York-based American Express will give you a $300 American Express prepaid card if you agree to say goodbye. American Express says that it is making this "deal" so that customers can "simplify" their finances. Sure. The offer, which isn't available to everyone, requires a 14-digit RSVP code. Customers are receiving this offer via U.S. Postal and email

If I am not mistaken, I got another credit card offer by American Express with something like a 300 dollar bonus for signing up the other day.

I too don't like American Express's terms so have never used their card and threw the offer, one of many weekly, away.

It could have been another phishing exercise, who knows.

It is surely time to be more careful.


On Bernanke, he is correct. Just as the fed put money in when we had other stock market corrections, they are trying to put money in right now to keep the value of money from going down in a death spiral. When it stops and the velocity of money goes up due to people spending their own money again, they will have to pull money out of the system. They are trying to keep dollar denominated items from free falling because of the paper loss and real loss to the value of goods in the economy because of the adjustment in home and stock values. We are having a real contraction that hasn't stopped yet and the fed can only provide liquidity right now to slow it down and make goods denominated in dollars remain steady. They will have to reverse course after the velocity of money picks up.
 
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