Archived entries for Uncategorized
Time magazine person of the year - Ben Bernanke
Unbelievable!
I suppose he just pipped Alan Greenspan to the post.
Here are some quotes from the person of the year proving what a wise genius this man really is:
July 2005
“I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit.”
November 2005
”With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.””The Federal Reserve’s responsibility is to make sure that the institutions it regulates have good systems and good procedures for ensuring that their derivatives portfolios are well managed and do not create excessive risk in their institutions.”
January 2006
”Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”
March 2007
“At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained,”
May 2007
“While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.”
October 2007
“It is not the responsibility of the Federal Reserve - nor would it be appropriate - to protect lenders and investors from the consequences of their financial decisions.”
February 2008
”I expect there will be some failures of smaller banks.”
Mar 18th 2008 - Bear Stearns bailout is announced
On Freddie Mac and Fannie Mae:”…adequately capitalized” …. ”in no danger of failing.”
Sept 8th 2008 - Fannie and Freddie are nationalised.
September 16th, 2008 - $85 Billion A.I.G. bailout.
September 19th, 2008 - $700 Billion bailout plan announced.
You can read more about his economic achievements (to perhaps balance my view) in Time Magazine here:
http://www.time.com/time/specials/packages/0,28757,1946375,00.html