bernanke speech
Since Fed Chairman Ben Bernanke speech this morning seems to be moving the market, I think it is useful to post a few excerpts from his speech and my reaction to it. [1]
Bernanke’s speech comes a day after San Francisco Fed President Janet Yellen said that the “U.S. economy appears to be in a recession,” a rare use of that word by a Fed official. [2]
Bernanke’s Speech: “It’s all China’s fault. [3]
The dollar was up against its major counterparts Thursday, ahead of Bernanke’s speech. [4]
NEW YORK (CNNMoney.com) — Federal Reserve Chairman Ben Bernanke warned in a speech Wednesday that the U.S. economy will take some time to recover - even if the credit markets return to normal soon. [2]
Instead, Greenspan and his Fed-brothers rubber-stamped every hare-brain scheme that Wall Street cooked up including the myriad complex derivatives contracts which ballooned from less than $1 trillion in 2000 to over $580 trillion today; a monstorous bubble which is large enough to send the entire global economy into a decades-long tailspin. [3]
“As the economy approached full employment, the Federal Open Market Committee (FOMC), the monetary policymaking arm of the Federal Reserve System, was faced with the classic problem of managing the mid-cycle slowdown–that is, of setting policy to help guide the economy toward sustainable growth without inflation. [1]
The economy will not feel the effects of the cuts at the end of this month until late in the third quarter 2008. [5]
“Savings” had nothing to do with it; Bernanke is just trying to dodge responsibility by blaming the Chinese. [3]
Jan 14, 2008 We sat down with Director of Zacks Equity Research Dirk van Dijk, CFA recently, in order to find out if the long speech by Fed Chair Ben Bernanke last Thursday would cause him to make any specific changes to his portfolio. [5]
On August 25, Bernanke gave what has become The Speech of the Year for Federal Reserve Board chairmen. [6]
But perhaps an even greater challenge was posed by a sharp and protracted correction in the U.S. housing market, which followed a multiyear boom in housing construction and house prices. [1]
It is universally agreed that Greenspan created the housing bubble by dropping rates below the rate of inflation for 31 months following the dot.com bust. [3]
In a question-and-answer session following the speech, Bernanke said he is very concerned about the concept that some financial institutions are too big to fail and that he wants there to be limits on financial market concentration going forward. [2]
“Policymakers must remain prepared to take the actions necessary in the near term to restore stability to the financial system and to put the economy on a sustainable path to recovery. [7]
Sources:
[1] Notes on Bernanke Speech
[2] Bernanke: No quick recovery - Oct. 15, 2008
[3] Bernanke’s Speech: “It’s all China’s fault. Really” by Mike Whitney …
[4] Treasurys higher ahead of Friday’s Bernanke speech - MarketWatch
[5] Parsing Bernanke’s Speech
[6] Bernanke’s International Time Bomb by Gary North
[7] Chairman Bernanke on the Record - News & Events - FRB Dallas