This post is from my Facebook page, 5/2009.
Ben Bernanke made it clear in the House/Senate hearing . His work benefits bankers and Walll Street, at taxpayer expense. Despite the entire world economy going down the tubes, Bernanke is oblivious. It is as if he has a huge Monopoly banking game, using taxpayer money to support banks.
Less money for lending is what resulted in job losses.
There has been a huge downturn in the Gross Domestic Product, the total amount of things our country produces. Household debt is the highest since the 1930s, benefiting-you guessed it- credit card companies.
Representative Brady (D-Mass.) asked, When will people who run government get it that we can’t continue spending money like this? This is completely ignored by the Treasury.
Bernanke said we must maintain a strong corporate bond market. “Nothing spooks bond traders more than cheerful headlines about full employment or strong economic growth. When economic news is great, bond markets often take it as a bad sign.”
Who is the Treasury working for? Bernanke says there is a “big demand” from people with money overseas to buy up our debt, because it makes them big bucks. Our country imports more stuff than it sells, so that gives us more debt. I fantasized being a Senator for a minute. I would have asked: Is that why so much debt is being created?
Ultra Treasurer! Where is his cape? Bernanke wants the power to take over businesses that work with money, but aren’t banks, which has never happened before. “We do not have the power to wind down these businesses, such as AIG.” He wants a law letting him grab these institutions, but is calling it “regulation.”
The members objected to having our government own banks.
One senator asked, “Should it bother us , giving one person that type of power?” “But this is an extraordinary time! It is crucial we have this. But I would be happy to go over everything with you.” (He met privately with Congress members later).
“We want to put the banks in a place where they no longer rely on government support,” Mr. Monopoly said.
Government invented a way to stop people from getting screwed. The Government Accountability Office and the Congressional Budget Office are our watchdogs. But Bernanke said a “code” stops the GAO or the Congressional Budget Office from investigating them. “We hired our own auditing company to look us over (Oh, THAT reassures us!) .” The Treasury has its own ideas how to make money for investors, he said. We don’t care about “political considerations.”
Remember those million-dollar bonuses that AIG got? ” We should not object to high salaries of CEOs. We should structure this to performance.”(AIG execs scored all that money from the Fed!)
The senators and representatives asked three times about inflation. Bernanke said he could raise interest rates, but otherwise deflected the question. Inflation won’t happen immediately, but…
The 19 largest banks have been subject to “stress tests.” They must show they can take in money from other business people, instead of a government handout. , If they can’t “prove” they can do this, Mr. Monopoly will hand them what they want! Dr. Bernanke said, “It’s lots of work. We must go through many portfolios.” It might cost 275 BILLION dollars, or much more! With many people out of work, and new jobs not looking bright, is that how we should spend money
What about President Obama’s ideas for stopping jobs from going overseas? Nope. That would make businesses “less competitive. “
The trade deficit is a contributor to the banking mess, but Bernanke wants to enable investors to put tax money into overseas businesses.
When people are unhappy, and there is high unemployment, there might be more support for a world war.
People should let their Senators and Representatives hear what they think. Both parties have responsibility for the bad money state. Bernanke was Bush’s financial advisor, but Obama has let him stay.
People must think what is best for our country and the world.