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Bernanke's Comments

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I never heard the speach you mention, but I did see him with a few comments on the news just as Greenspan was retiring.

His take on the economy was that although some measures show no savings, the real estate and other assets Americans hold is massive.

Kinda sounded like he heard your comments about the savings calculation lack of information.

What is your take on the lower interest rate the fed announced? Some commentators were completely surprized.
 
Jason said:
I never heard the speach you mention, but I did see him with a few comments on the news just as Greenspan was retiring.

His take on the economy was that although some measures show no savings, the real estate and other assets Americans hold is massive.

Kinda sounded like he heard your comments about the savings calculation lack of information.

What is your take on the lower interest rate the fed announced? Some commentators were completely surprized.


Jason, are you suggesting that fed chairman bernanke gets his talking points from Agman?

You really are a fruitloop. Part of the 5th column, I see. Since you have no historical literacy, I have copied the meaning of 5th column for you below:

A fifth column is a group of people who clandestinely undermines from within a larger group to which it is expected to be loyal, such as a nation. The term originated with a 1936 radio address by Emilio Mola, a Nationalist general during the 1936-39 Spanish Civil War. As four of his army columns moved on Madrid, the general referred to his militant supporters within the capital as his "fifth column," intent on undermining the Republican government from within.

The term is also used in reference to a population who are assumed to have loyalties to countries other than the one in which they reside, or who support some other nation in war efforts against the country they live in.

During World War II, German minority organisations in Poland and Czechoslovakia formed Selbstschutz, which actively helped the Third Reich, against those countries have engaged in atrocities.

The Japanese American internment in the United States was justified on the basis that those of Japanese ancestry living on the west coast would act as a fifth column. Irish Catholics resident in the UK have been sometimes viewed in this way due to "The Troubles" of the late 20th century (see also Guildford Four, Birmingham Six).

Today it has sometimes a pejorative connotation, whereas partisan can be considered good or bad, depending on one's perspective. Resistance movements are looked upon more favourably than fifth columnists, but it can be argued that that there is an overlap between the two.

Today some people in a number of Western countries see radical Islamists - or even Muslims in general - as being a fifth column of a global Islamist movement, with its notion of a transnational Ummah.
 
Jason said:
I never heard the speach you mention, but I did see him with a few comments on the news just as Greenspan was retiring.

His take on the economy was that although some measures show no savings, the real estate and other assets Americans hold is massive.

Kinda sounded like he heard your comments about the savings calculation lack of information.

What is your take on the lower interest rate the fed announced? Some commentators were completely surprized.

To the best of my recollection he had several key points. First, the prospects for sustained economic growth is on solid footing.

Second, that the inverted yield curve, short term interest rates above long term interest rates, are not indicative of an economic slowdown. Rather the inverted yield curve depicts a comfort level that long term inflation will be controlled.

Third, our trade deficit is a function of strong domestic growth versus other industrialized and developing nations. As their economies begin to grow, which is happening now, trade should become more balanced. The world is awash in excess savings which should be used to spur domestic demand reducing other countries reliance on exports. Also, our deficits should be measured relative to the size of our economy.

Fourth, while conventional measurements of domestic savings are low they fail to properly measure other factors that contribute to total savings. He did mention the high level of household net worth. He also stated that consumer income/assets versus debt ratios monitored by the fed are above long term averages suggesting the consumer is not tapped out and they are in better shape then commonly perceived. Adjustable rate mortgages, while a concern, are less of a problem then generally perceived since the conversion periods to fixed rates is spread out over various periods generally from 1-7 years. Thus, borrowers are still benefiting from low interest rate ARMs and there would be no sudden rush to seek fixed rate loans. Last year only 10% of ARMs were converted to fixed rate loans.
 

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