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View Diary: Why what Ben Bernanke said yesterday should make you angry (102 comments)

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  •  your focus is misplaced (0+ / 0-)

    -You want to change the system, run for office.

    by Deep Texan on Fri Jun 08, 2012 at 07:25:01 AM PDT

    [ Parent ]

    •  I believe Bernanke can & should do more (2+ / 0-)
      Recommended by:
      randomfacts, WheninRome

      I also believe that they are not in large part for political reasons rather than economic reasons.

      If we can help create that pressure to help Bernanke, the Fed, and others (Obama, etc) do more, I believe we should.

      We shouldn't simply shut down this conversation because someone says "you're villifying" or "you're waging class warfare".

      Is there the potential to create inflation? Possibly ... but past QE has not created undue inflation. I see no evidence to think additional would be any different.

      •  like what? (1+ / 0-)
        Recommended by:
        Dburn

        you don't know how it works so how could you know anything about doing more?

        -You want to change the system, run for office.

        by Deep Texan on Fri Jun 08, 2012 at 09:50:14 AM PDT

        [ Parent ]

        •  you don't know how it works (0+ / 0-)

          ... so how can you say anything?

          There ... we've both said the other person doesn't know anything. Have we gotten the name calling out of the way?

          •  so you think FED policy can create jobs? (1+ / 0-)
            Recommended by:
            Dburn

            create demand

            how so?  explain it.

            -You want to change the system, run for office.

            by Deep Texan on Fri Jun 08, 2012 at 10:14:04 AM PDT

            [ Parent ]

            •  To be fair to Ben Bernanke (3+ / 0-)
              Recommended by:
              playon, qofdisks, akadjian

              he did say in his testimony that Congress is partly at fault in that they could take steps to create jobs.

              And they can.

              We could put people to work (millions, if fact) and build all kinds of infrastructure; and clean up pollution; and recycle waste; and beautify the country by reviving the old Works Progress Administration of Civilian Conservation Corps, or create similar-type projects.  That is not something the Federal Reserve can do.

              The Federal Reserve only has basically one tool: monetary policy.  And it only has two speeds: stop and go.  Loosening the money supply does not have a direct correlation to jobs when the money just goes into buying gold, securities or even bonds.  What is needed is to get money into the hands of those that will use it to get out of the massive consumer debt that exists in this country.  And that cannot be accomplished by flooding banks and wealthy people with money.

              Bernanke is right: Congress needs to create actual jobs with policy and outlays through the budgetary process.

              But of course, we know that the party who has effective control of both houses of Congress won't do that because they think it helps their chances in November.

          •  explain how keeping interest rates low (4+ / 0-)
            Recommended by:
            gramofsam1, Dburn, playon, qofdisks

            and more free money, which just goes to the big players will help.

            this problem has a long history.  people have been left behind.  the jobs have left America.  

            -You want to change the system, run for office.

            by Deep Texan on Fri Jun 08, 2012 at 10:15:08 AM PDT

            [ Parent ]

            •  Low mortgage rates (2+ / 0-)
              Recommended by:
              JPax, TomFromNJ

              Operation Twist and other activities have helped mortgage rates reach record lows.  This makes it easier for people to get cheaper mortgages, leaving more money in their pockets to spend.  It also helps stabilize the housing market, which is a good place for new jobs to develop.

              Bernanke and the Fed has done a lot...but monetary policy can only do so much.  Ben pushed very hard on Congress to do its job -- that is, deal with fiscal policy (tax and spend issues).  

              Everything in moderation, including moderation.

              by pjphilter on Fri Jun 08, 2012 at 10:30:51 AM PDT

              [ Parent ]

              •  low mortgage rates imo (2+ / 0-)
                Recommended by:
                gramofsam1, qofdisks

                don't leave more money in your pocket now.

                over time the collected benefit is more money in your pocket but it's only helped juice the market, rather than leave you with more money.  

                as for creating jobs, that market is still negative in that area right?  it's not enough.  you are right the proper place to fight this fight is in congress.

                which is why my comments here are spot on.  wrong focus!

                -You want to change the system, run for office.

                by Deep Texan on Fri Jun 08, 2012 at 10:34:48 AM PDT

                [ Parent ]

              •  Low mortgage rates (0+ / 0-)

                Ever asked anyone or know anyone who qualified for the lowest rate published?

                •  The lowest published rates require paying points (1+ / 0-)
                  Recommended by:
                  Dburn

                  So, the rates quoted are a little misleading.  But I know of three residential mortgages that people got recently with 3.5% interest rate for 30 years.  

                  •  With points and a substantial Downstroke (0+ / 0-)

                    Although I have read of a few finance companies who are...wait for it...getting back into sub-prime. Some companies will buy homes for 20-36% either on the sale value or the mortgage value from the govt or banks desperate for real cash liquidity. Then they can do "rent to owns" , or sub-prime lending like a buy here, pay here car lot. Interest rates up in the teens but the mortgage balance lower.

                    The real goal is to get as much as they can and then foreclose or evict/repo , fix and start over. More likely found in non-judicial foreclosure states.

                    The 3.67 rate quoted as the "lowest ever in recorded history" always come with a who crap load of fees, points, and a large amount of upfront cash.

              •  low mortgage rates dont mean sqat if (0+ / 0-)

                You can't make the mortgage with your labor.

      •  rates can't go any lower (5+ / 0-)
        Recommended by:
        gramofsam1, Odysseus, Pluto, Dburn, Egalitare

        more money isn't necessarily going to create more demand, at least not in the U.S.

        corporate america is sitting on plenty of cash.  they could hire plenty of people.  they don't because of demand.

        they won't hire more people because ben has dropped more money into the economy.  remember that money is mostly going to the big players and they are just sitting on it.

        free money that gets gobbled up by corporate america won't fix the problem.  the stock market will go up though.

        but main street america will still be left behind, like usual.  krugman doesn't believe this is a structural problem but it is.  unemployment won't be affected that much by a new round of free money.  we need jobs and the FED can't provide that.

        -You want to change the system, run for office.

        by Deep Texan on Fri Jun 08, 2012 at 10:12:44 AM PDT

        [ Parent ]

        •  Actually, there is talk of negative rates, as well (1+ / 0-)
          Recommended by:
          greengemini

          as issuing currency with coupons that reduce its value over time. That should spur monetary velocity because if you don't use it, you lose it.

          -We need Healthcare Reform... but i'm selfish, I Need Healthcare reform-

          by JPax on Fri Jun 08, 2012 at 11:14:04 AM PDT

          [ Parent ]

        •  Corporate America Won't Hire...... (5+ / 0-)

          Not just because of demand...but because it takes money, ie wages and benefits, out of the pockets of the "shareholders".  This means less bonus money for the top execs.  We can use more people in our company.  Almost everyone is overworked and over-stressed.  The top execs have cut staff to the bone and beyond.  Not sure what is happening in private companies.  

          I've talked to a number of people about their situations at the companies they work at...and the answers are similar.  It is hard to find anyone satisfied with their current employment situation....and it isn't the work.  I really think it is partly due to the focus on the quarterly report.

      •  They actally want higher unemployment. (0+ / 0-)

        It creates a pressure to roll back labor rights big time.

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