The Bernanke Scandal: Full-Frontal Cluelessness

[marmar]

from truthdig:



The Bernanke Scandal: Full-Frontal Cluelessness

Posted on Jun 7, 2011
By Robert Scheer


How I wish that Ben Bernanke would get caught emailing photos of his underwear-clad groin. Otherwise we don’t stand a chance of reversing this administration’s economic policy, which is shaping up to be every bit as disastrous as that of its predecessor.

Indeed, the Fed chairman’s much anticipated remarks on Tuesday take one back to the contemptuous indifference of a Herbert Hoover to the public’s suffering: Bernanke dismissed the wobbly economy with its anemic 1.8 percent first-quarter growth as merely “somewhat slower than expected.” The rise in unemployment to 9.1 percent was “some loss of momentum.”

The problem with Bernanke is that he is utterly clueless as to the stark pain and fear endured by the 50 million Americans who have experienced, or face the prospect of, losing their homes. His remarks reflected the insularity of a ruling-power elite that is magnificently impervious to the damage that Bernanke’s policies in the current and past administration helped inflict on what used to be called the American way of life. This is a man who assured us there was no housing crisis, while his policies at the Fed encouraged the mortgage securitization swindles that caused the meltdown of the economy.

His full statement stands as a classic example of the limits of economic language as morally descriptive: “Overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers.” Frustratingly slow—how about going bat nuts with fear over not being able to make your mortgage payment and losing your home? Tell it to workers who must contend with stagnant wage rates and sharply rising gas and food costs as better jobs and therefore consumer demand move offshore. Bernanke takes low wages to be reassuring news on what he sees as the all-important inflation front: “subdued unit labor costs should remain a restraining influence on inflation.” ..............(more)

The complete piece is at: http://www.truthdig.com/report/item/the_bernanke_scandal_full_frontal_cluelessness_20110608/

[aquart]

1. But when can we hang him?

[marmar]

2. I'm all for it......Metaphorically speaking, of course.

nt

[ixion]

3. a couple choice 'graphs

The record is by now indelibly clear that the economic approaches pursued by George W. Bush and Barack Obama, with Bernanke playing a key role in both administrations, can be most accurately summarized as a policy of government of the bankers, by the bankers, and for the bankers.

Assurances of stability to the financial markets, meaning the ability for companies to borrow government funds at a near-zero interest rate without giving anything back to the public in the form of mortgage relief or job creation, have been the overwhelming goal. But even by that standard, as the latest statistics on job creation and construction starts attest, the government’s effort is not working. Putting the bankers first has represented pushing on a string, what Paul Volcker condemns as a “liquidity trap,” a situation in which taxpayer money has been made available to major corporations that invest in job creation that benefits foreigners instead of U.S. workers. Now that’s an obscenity we should be concerned about.

Spot on, that.

[Enthusiast]

16. Yes, spot on.........nt

[bemildred]

4. He is not clueless, he knows exactly what he is doing, he doesn't give a shit. nt

[ixion]

5. You're right. He doesn't. He'll be granted lands and titles in the Neo-Feudal Era

just around the corner.

[truth2power]

6. Of course! But then why does Obama keep him on? My take is

Obama doesn't give a shit, either.

[bemildred]

7. Obama is conflicted, I think, in ways that BB is not.

But BB has the Banks behind him and Obama is either afraid to challenge that or drinks the Free Market KoolAid still.

[truth2power]

13. He probably IS afraid to challenge. But I am effing sick and tired

of hearing excuses for what Obama can't do. Meanwhile, the country is falling off a cliff. I'm not directing this toward you, bemildred, but that point of view seems to be pervasive here on DU.

Obama can't stand up to the banks because....
He can't stand up to the regressives in Congress because....
He can't stand up to Bibi Netanyahu because... (In fact, Bibi all but laughs in Obama's face and then does whatever he wants to anyway).
He can't stand up for single payer health care because...

If the above is true, as some will claim, then perhaps we should just abolish the office of POTUS, as it seems to serve no useful purpose as far as getting us out of the mess we find ourselves in.

[bemildred]

14. I feel your pain.

:-)

My own view is that the US electorate has not sufficiently exhibited it's displeasure yet, at election time, like by voting for Barney the Purple Dinosaur if that's the only alternative to the incumbent. As long as incumbents are safe, as long as they have enough money, the views of the electorate will be ignored.

[truth2power]

17. Our electoral system needs to be reformed....

Some form of instant runoff voting would be a start. As it now stands, any outlier has virtually no chance to be eledted.

Of course, this will never happen. The moneyed interests wouldn't allow it. They like things just the way they are.

[Demeter]

8. No Way to Get Bernanke Out (short of scandal or prosecution)

Obama should never have reappointed him---7 year term.

Why Obama didn't see fit to clean house of Bush Appointees when he took the oath has always puzzled me. Clueless, bought off...or both.

[truth2power]

12. I forgot about the 7 year term. But that still begs the question of why he reappointed

him to begin with.

[unblock]

9. barnanke is far better than greenie was, and i'm not sure what a more liberal fed chair would do

that real problem is that the fed has only one big lever -- the money supply -- and bernanke is pumping in more money than was previously thought possible. this is about the best he can do.

the real why it's not working is not because fed policy is wrong, but because fiscal policy is completely inept. congress is talking about austerity for those in need and tax cuts for those not in need. THAT is what is screwing up the economy.

i suppose bernanke could have pleaded with congress to take more constructive action, but ultimately, it is the job of congress, not the fed.


if this is really just complaining about the bailouts, yes, those could have been done on far better terms. but i'm rather inclined to put the blame for that on congress/paulson/bush and the banks themselves more than bernanke. i don't know if bernanke tried for a better deal, but i'm fairly certain that a better deal wasn't available with those counterparties.

[bvar22]

10. !!!

Paulson with Co-Conspirators

Now THIS is Bi-Partisanship!
Better get used to it.




"By their works you will know them."

[BREMPRO]

11. exactly... odd to blame Bernanke for this.. he's rescued us from the abyss

and has limited measures as you stated.ultimately it's up to congress and the preident to fix the problem, but i'm afraid they are to busy worrying about getting re-elected and campaign contributions from corporations to actually resolve the economic crisis...

[Enthusiast]

15. Hey!

Hey, he isn't a teacher so we can't hold him responsible.