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Bernanke: Why are we still listening to this guy?

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  • #1

    Bernanke: Why are we still listening to this guy?

    [YOUTUBE]HQ79Pt2GNJo[/YOUTUBE]

    One comment on the video is classic:

    The "GREAT economist speaks:
    2005 - no housing bubble
    2007- car industry "OK"
    2008 - Few small banks may fail (3 wks before Lehman)
    2008 - Unemployment will not hit 10% (currently 17%)
    2008 - The Fed will not monetize the debt.
    2008 - Freddie/Fannie adequately capitalized
    2008 - Sub-prime problem contained
    It's uncanny - the guy's forecasts have a near 100% failure rate. Man of the Year? LOL
    Tags: None
  • #2
    Originally posted by katoa View Post
    [YOUTUBE]HQ79Pt2GNJo[/YOUTUBE]

    One comment on the video is classic:

    The "GREAT economist speaks:
    2005 - no housing bubble
    2007- car industry "OK"
    2008 - Few small banks may fail (3 wks before Lehman)
    2008 - Unemployment will not hit 10% (currently 17%)
    2008 - The Fed will not monetize the debt.
    2008 - Freddie/Fannie adequately capitalized
    2008 - Sub-prime problem contained
    It's uncanny - the guy's forecasts have a near 100% failure rate. Man of the Year? LOL
    It's not his job to say what he really thinks. He's supposed to say positive things so that consumer & market confidence rises.

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    • #3
      Originally posted by statman View Post
      It's not his job to say what he really thinks. He's supposed to say positive things so that consumer & market confidence rises.
      This is twice in the last week I agree with you. Getting spooky.

      Comment

      • #4
        This is similar to "lying with statistics". Somebody picked his predictions that were wrong, and put them together in a montage. What about his accurate predictions? This was not a random sample.
        "Don't expect I'll see you 'till after the race"

        "So where does the power come from to see the race to its end...from within"

        Comment

        • #5
          Originally posted by statman View Post
          It's not his job to say what he really thinks. He's supposed to say positive things so that consumer & market confidence rises.
          Sure, confidence rises, until the inevitable happens and the public realizes they have either been lied to or the Fed doesn't know the hell what it is talking about (or both). Then panic sets in. And this is good, how?


          This is similar to "lying with statistics". Somebody picked his predictions that were wrong, and put them together in a montage. What about his accurate predictions? This was not a random sample.
          You're right - it is not a random sample. It is looking at the most important economic events in the past few years and looking at what the Fed told us. Who cares if they accurately predict minor (often misleading) statistical minutia? However, wouldn't it have been wise for the Fed to warn (slowly, to avoid panics) that there was a serious bubble developing in the housing market. And more importantly, wouldn't it have been wise to help prevent the housing crash in the first place by letting the free market determine interest rates (yes, I know they don't really set interest rates directly), instead of by our supposedly all-knowing central economic planners.

          Comment

          • #6
            Originally posted by katoa View Post
            And more importantly, wouldn't it have been wise to help prevent the housing crash in the first place by letting the free market determine interest rates (yes, I know they don't really set interest rates directly), instead of by our supposedly all-knowing central economic planners.
            Interest Rates are at the bottom of the list of what caused the housing bubble and subsequent crash. The belief that everyone should be a homeowner and the resulting "creative" mortgage lending and so forth are the primary cause. I'm certainly not going to defend redlining, but the regulations that came out in order to prevent essentially forced lenders to continuously lower the bar. Combine that with what amounted to wholesale mortgage fraud perpetuated by realtors, appraisers, mortgage lenders, etc. and there you have it.

            EDIT: Also, wouldn't a true libertarian just prefer that Bernanke never say anything at all?
            "It's true that everything happens for a reason. Just remember that sometimes that reason is that you did something really, really, stupid."

            Comment

            • #7
              Originally posted by FMCoug View Post
              Interest Rates are at the bottom of the list of what caused the housing bubble and subsequent crash. The belief that everyone should be a homeowner and the resulting "creative" mortgage lending and so forth are the primary cause. I'm certainly not going to defend redlining, but the regulations that came out in order to prevent essentially forced lenders to continuously lower the bar. Combine that with what amounted to wholesale mortgage fraud perpetuated by realtors, appraisers, mortgage lenders, etc. and there you have it.
              I actually agree with you, although politicians would have had a much harder time continuing supporting these policies if the Fed did its job and warned of the consequences.


              EDIT: Also, wouldn't a true libertarian just prefer that Bernanke never say anything at all?
              Hehe, actually they would prefer Bernanke, umm, I mean his position, didn't exist.

              Comment

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