Bernanke: Financial Storm Not Yet Over

[Purveyor]

Source: CNN MONEY

NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke said Friday that the problems in the nation's financial markets persist and still threaten the economy.

Bernanke said that the financial woes, coupled with record oil prices and the weakening economy, had created "one of the most challenging economic and policy environments in memory."

In prepared remarks at a conference in Jackson Hole, Wyo., Bernanke also said he is encouraged by the recent oil price decline, which may signal that inflationary pressures are on the wane.

"Although we have seen improved functioning in some markets, the financial storm that reached gale force some weeks before our last meeting here in Jackson Hole has not yet subsided," Bernanke said.

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Silvia said the Fed had little choice but to focus on upheaval in the credit markets rather than on inflation as it cut rates. And while he agreed that financial market woes are not behind us, he said the Fed faces a risk of inflation getting out of hand the longer it keeps rates on hold.

"Inflation is not out of control, but it's clearly drifting away," he said.

Bernanke's remarks come more than a week after the Consumer Price Index, the government's key inflation measure, rose to a 17-year high, gaining 5.6% over the previous 12 months. The Producer Price Index, a measure of wholesale inflation, also rose this week to a 27-year high.

Read more: http://money.cnn.com/2008/08/22/news/economy/bernanke/index.htm

[ixion]

1. gee, Ben, ya think?

:eyes:

[CountAllVotes]

2. hell of a job there Bernanke

:grr:

Wake up would you? :argh:

:dem: :kick:

[Zorro]

4. Greenspan handed over a shitty situation to Bernanke

And left Helicopter Ben to clean up the mess.

Just like the situation Obama is going to face in January.

[CountAllVotes]

5. Bernanke is an idiot IMO

For being a "student of the Great Depression" he sure as hell doesn't know :wtf: he is doing IMO.

He needs to jack up the rates to match inflation! Hence, this country's debt will then be bought as investments by other countries around the world. Where money is to be made, Ben should follow. :think: Ben :think: !!

[Zorro]

6. Jacking up rates would be OK with me

but it would probably drive a lot more people into foreclosure.

[CountAllVotes]

7. if they have loans already why would that be?

They got themselves into whatever contract they have. I'm not so certain how many were/are fraudulent. In any event, the rates have got to go up to offset the extreme inflation we are now finally admitting does exist.

It doesn't make sense to try to jack up the stock market which is based on basically nothing but a bunch of going nowhere investments owned by the elite and ignoring rates on insured/guaranteed instruments. This panders to only the few that have money in the stock market IMO. That right there tells you who Bernanke's followers are - the usual suspects in most cases.

I hope that President Obama will fire his butt and get someone in the job that knows what they are doing and is not merely a shill for the rich which aren't so rich anymore. Honestly, I have no sympathy for them admittedly.

The people that are trying to honestly save money and invest in America are the losers. Some patriot this A-whole is. :puke:

[Psephos]

8. "the few who have money in the market"

Anyone who has a pension, a life insurance policy, a 401K, a mutual fund, or is a citizen of a state that makes market investments (most of 'em) has money in the market. Anyone who works for a medium or large corporation has money in the market. Teachers, firemen, and public servants of every stripe have money in the market. Universities, trusts, philanthropic foundations, and NGOs have money in the market.

In other words, a substantial majority of US citizens have a direct stake in market performance.

The minority who don't are nonetheless dependent upon a healthy stock market to insure that they will have jobs. Crash the market and you create major-league unemployment.

Meanwhile, the President does not have the power to fire the Chairman of the Federal Reserve Board of Governors. The President appoints the Chairman, who then serves a four year term, upon confirmation by the Senate. Bernanke's current term runs until 2010.

Here's some background.

http://en.wikipedia.org/wiki/Chairman_of_the_Federal_Reserve

[CountAllVotes]

9. what about the working poor

do they have money invested in the stock market? I don't think so. Only the few with the good jobs might.

No one gives a damn about working Americans which are most of us. The cheap employers don't care either. It makes no sense for them to set up a retirement plan of any sort for their employees being they are not worthy of it.

:kick:

[Psephos]

12. Read my post again; I addressed that specifically.

"The minority who don't are nonetheless dependent upon a healthy stock market to insure that they will have jobs. Crash the market and you create major-league unemployment."

As my grandfather used to say, no poor man ever gave him a job.

Meanwhile, the majority of US citizens do have a direct stake in the market and from a political, moral, and economic perspective, I can't believe you don't think their interests are worthy of good stewardship.

[CountAllVotes]

13. tell that to a woman making $.59 to the dollar

the man makes more. Many women cannot save money. I do not see any great employers around where I live that even have something called a "401K" - a creature of more recent times.

[Psephos]

11. self-delete - wrong subthread

[Odin2005]

10. The Fed is stuck between a rock and a hard place.

If it raises rates to attack inflation it will further devastate people with adjustable-rate mortgages and send the economy further into the recessionary hole it's in. If it cuts rates inflation will run wild even more then it is It's really out of the Fed's hands, the problem is our trade deficit, deficit spending, and a BS corporate tax structure that encourages economic bubbles and speculation, problems only Congress can fix

[RedLetterRev]

3. They kicked over the biggest hornets nest they could find

and stood there piddling, "Ah 'ownt thank 'em bayz iz done a-comin' out yit."

No shit, Sherlocks.

The neokkkons act just like a troop of LA (not Los Angeles; Lower Alabama) four-year-olds loose in Tiffany's. They've trashed the place, now the rest of us have to pull out our wallets to try to replace the irreplaceable.

Nice :grr: