Harry Truman said it best; there’s no such thing as the future, only history that hasn’t happened yet. Thanks Harry. Let’s take a stroll down memory lane, shall we?
March 28th, 2007-”at this juncture…the impact on the broader economy and financial markets of the problems in the subprime markets seems likely contained.”
October 15th, 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.”
June 9th, 2008-”Despite a recent spike in the nation’s unemployment rate, the danger that the economy has fallen into a ’substantial downturn’ appears to have waned.”
July 16th, 2008-”[Freddie and Fannie]…will make it through the storm.” “[are]…in no danger of failing.”,”…adequately capitalized.”
September 8th, 2008-Fannie and Freddie nationalized.
All quotes above from Ben Bernanke as documented in “AFTERSHOCK” second edition.
Today Big Ben will speak to congress. This column is being written before Ben speaks, however based upon Ben’s record the outcome is predictable. Just as with Obama you can usually count on whatever they say the opposite will occur.
ZeroHedge’s Tyler Durden has a way with words and says it much better than I: Now that stocks are back to reflecting nothing more than expectations of how many times the Chairsatan dilutes the existing monetary base in a carbon copy replica of not only 2011 but also 2010… and 2009 (because contrary to what purists may believe, the only way to inflate away unsustainable debt in a growth-free economy is by destroying the currency), and manic pattern chasers have crawled out of their holes proclaiming the death of the bear market after a two day bounce, what is happening in the actual economy, no longer reflected by the market, has once again been pulled back to the backburner. Which is sad, because while ever fewer people reap the benefits of artificial, centrally-planned S&P rallies, the rest of the population suffers, and what is worse: hope for a quiet, middle-class life is now an endangered species.