Bernanke says “So far – so good”

WTF is Bernanke smoking?  Is “Helicopter” Ben Bernanke looking at the papers – or using them for rolling papers?

According to a story on MarketWatch, Bernanke is quoted as saying “We have been encouraged by the responses to these programs” and “I think the actions that were taken prevented a much-worse situation — a meltdown that would have led to a catastrophic and long-term low level of activity“.

Which markets has he been watching?  We’re having a meltdown right now, and I think we’re in about the 3rd inning of a 9 inning game.  The Fed’s interference in private markets – especially propping up bad banks – is making the “catastrophic” situation worse long term.  I think his actions in part created the current problems, so why in hell are we thinking he knows how to fix them?

The current mess is easily traced back to government interference in private markets, starting with a Clinton administration policy of pushing banks to give loans to those who would otherwise not qualify.  It was greatly exacerbated by Alan Greenspan’s cheap money policy instituted after the tech bubble and 9/11.  And it’s gone to hell in a hurry because of the trillions in bailouts under Bush/Obama.

Here’s a listing of how the $9.1 trillion in bailout money (as of last week) has been wasted.

A friend of mine posted this on a Facebook page earlier today, and I’m going to shamelessly steal it to emphasis how much of our money Bernanke (under Bush/Obama) has blown.  I haven’t verified any of these numbers, so let me know if any are wrong and I’ll correct the post:

People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.

Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures – combined:

Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
NASA all time costs: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 Trillion

As of December 2nd (including the Citi numbers) the total bailout spending is…

TOTAL: $4.6165 Trillion dollars

But yet Bernanke says “So far, so good!”

He’s a bigger idiot than his former boss – and that’s tough to beat!

Another quote from the MarketWatch story.  “And we are using whatever means we have to overcome what has been an enormous blow from this financial crisis.”

Evidently “whatever means we have” includes destroying the free market system, converting us entirely into a welfare laden socialist state, and inflating the dollar until it’s worthless.  Intended are not, Bernanke’s actions will have consequences.  And they won’t be good.

gk

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