Bernanke predicts bank failures
Bob Brock
Federal Reserve Chairman Ben S. Bernanke yesterday said for the first
time that he expects some bank failures as a result of the spreading
financial crisis, while consumers as well as banks will bear the brunt
of what could be a protracted economic downturn.
Mr. Bernanke's testimony before the Senate Banking, Housing and Urban
Affairs Committee provided his gloomiest assessment of the economy to
date and came after the government reported that economic growth
approached zero at the end of last year. While maintaining the Fed's
official stance that recession can be avoided, Mr. Bernanke discussed
the possibility frankly and at length with senators.
President Bush yesterday said the economy is plagued by uncertainty
but is still growing after posting growth of only 0.6 percent in the
fourth quarter. "The housing issue is one that we're deeply concerned
about," he said, adding, "We'll make it through this period."
The advent of bank failures is one measure of how deep the downturn
has become. The country has not seen widespread bank failures since
the savings and loan crisis of the late 1980s, which precipitated an
expensive taxpayer-financed bailout, a major credit crunch and a deep
recession in 1990 and 1991.
Mr. Bernanke expressed confidence there would be no bank failures as
recently as last week, so his change of tune yesterday suggests that
he recently became aware of banks whose solvency is threatened by what
he characterized as a widening credit "crisis."
(...)
Bob Brock
wrote:
>On Sun, 02 Mar 2008 01:13:19 -0500, Bob Brock <bbr...@i-americia.net>
>wrote:
>
>><http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080229/BUSINESS/146647005/1001>
>>Federal Reserve Chairman Ben S. Bernanke yesterday said for the first
>>time that he expects some bank failures as a result of the spreading
>>financial crisis, while consumers as well as banks will bear the brunt
>>of what could be a protracted economic downturn.
>
><http://online.wsj.com/article_email/SB120398607404892133-lMyQjAxMDI4MDIzNzkyODc2Wj.html>
>FDIC to Add Staff as Bank Failures Loom
>...
>The FDIC is looking to bring back 25 retirees from its division of
>resolutions and receiverships. Many of these agency veterans likely
>worked for the FDIC during the late 1980s and early 1990s, when more
>than 1,000 financial institutions failed amid the savings-and-loan
>crisis.
>...
>"Regulators are bracing for well over 100 bank failures in the next 12
>to 24 months, with concentrations in Rust Belt states like Michigan
>and Ohio, and the states that are suffering severe housing-market
>problems like California, Florida, and Georgia,"...
The neo-con sympathizers seem to be silent on this issue. I guess
Bush telling them that the economy is good and gas prices are
unchanged is enough for them.
Curly Surmudgeon
> <http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080229/BUSINESS/146647005/1001>
>
> Federal Reserve Chairman Ben S. Bernanke yesterday said for the first time
> that he expects some bank failures as a result of the spreading financial
> crisis, while consumers as well as banks will bear the brunt of what could
> be a protracted economic downturn.
Bernanke is a regular Nostradamus or Cayce, eh?
Aren't we supposed to have people in that position who work to anticipate
and ward off this shit?
-- Regards, Curly
------------------------------------------------------------------------
Time to dust off Madam Guillotine
------------------------------------------------------------------------
Curly Surmudgeon
It's kinda hard to slip in non-sequitors and ad homenims when the evidence
is so clear.
Remember that Republicans were the straw that broke America's back.
Curly Surmudgeon
> On Thu, 06 Mar 2008 00:34:58 -0300, Curly Surmudgeon
> <CurlySurm...@live.com> wrote:
>
>>On Sun, 02 Mar 2008 01:13:19 -0500, Bob Brock wrote:
>>
>>> <http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080229/BUSINESS/146647005/1001>
>>>
>>> Federal Reserve Chairman Ben S. Bernanke yesterday said for the first
>>> time that he expects some bank failures as a result of the spreading
>>> financial crisis, while consumers as well as banks will bear the brunt
>>> of what could be a protracted economic downturn.
>>
>>Bernanke is a regular Nostradamus or Cayce, eh?
>>
>>Aren't we supposed to have people in that position who work to anticipate
>>and ward off this shit?
>
> The FEDs original charter, and still supposedly their main charter, is to
> provide a stable value currency to support world wide free trade.
>
> That's worked out well, hasn't it?
Only if one sees the implied sarcasm in your last sentence.
Granted that Bernanke has an impossible job but he accepted the job and
has to likewise accept the responsibilities that his actions have helped
precipitate events.
As a Bush appointee he's joined a long list of fuckups that make Hoover
look like Brainiac.
strabo
> On Thu, 06 Mar 2008 00:34:58 -0300, Curly Surmudgeon
> <CurlySurm...@live.com> wrote:
>
>>
>>> <http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080229/BUSINESS/146647005/1001>
>>>
>>> Federal Reserve Chairman Ben S. Bernanke yesterday said for the first time
>>> that he expects some bank failures as a result of the spreading financial
>>> crisis, while consumers as well as banks will bear the brunt of what could
>>> be a protracted economic downturn.
>> Bernanke is a regular Nostradamus or Cayce, eh?
>>
>> Aren't we supposed to have people in that position who work to anticipate
>> and ward off this shit?
>
> to provide a stable value currency to support world wide free trade.
>
> That's worked out well, hasn't it?
>
Federalists can and will argue that since 1933 the system has worked to
support world wide free trade. They would say that the US emergence
as a world power was entirely due to super capitalism and the US
financial system. I suspect they believe they're the greatest thing
since sliced bread and are shocked by the intensity of criticism.
Personally I see their claimed successes as debauchery of the
Constitution and a major contributor to individual and national
failures.
The dollar will likely devalue 60% this year as gold reaches $2000
an once.