My, oh my.
According to Karl Rove, Rick Perry, has committed the unpardonable sin of calling Bernanke’s actions of printing money treasonous.
I thought I was the only one in the public domain that was calling for jail time for crimes committed against the country during the great credit meltdown of 2008.
I’m not sure treason is the right word since it connotes “knowingly” taking action against our country. I don’t think Bernanke could be accused of that, however, he could be accused of being entrapped in a philosophy which has the same result as total destruction. If treason were murder, then what Bernanke did was at least manslaughter.
We’re all familiar with the actions taken by Bernanke (along with Geithner and Paulson) in 2007 and 2008.
Contrary to revisionist history, certain investment banks and beleaguered corporations were on the verge of collapse, the inevitable contraction phase of a boom-bust cycle.
Historically, the cycle starts with growth, and then boom followed by bust, then contraction, stability, growth, and so forth. Unfortunately, as the contraction phase was about to begin, Bernanke went into action.
The selective destruction of Lehman Brothers and Bear Stearns and the careful rescue of Goldman Sachs, AIG, Citigroup, Bank of America, GM, and many more, were deliberate choices made by this select group of men.
It should the business cycle that determines the winners and losers, not those who believe they’ve come down from Mt. Olympus. Their actions, in my opinion, were not only illegal, but also highly unethical and very immoral.
Attempting to circumvent the natural business cycle had extremely severe repercussions in the United States and around the world. Arab Spring was not about Democracy, it was about jobs and food.
$4.00 gasoline was not about supply and demand, it was about excess trading capital flowing into tight markets. Inflation, deflation, high unemployment, foreclosures, and all the rest of our current economic tribulations can be laid at the feet of those who tried to rearrange the normal economic and business cycles.
It’s interesting to recall after the savings and loan crisis of the 1980s and 19990s, hundreds of people were indicted and many went to jail. Now, in the so-called aftermath of the credit crisis, no significant person has been either indicted or jailed. Maybe that’s because we haven’t yet reached the aftermath, it’s only just begun.
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.