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View Diary: Ben Bernanke Says He's Sorry, And He Won't Do It 'Again' (220 comments)

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  •  another nail in the coffin of Ben: (11+ / 0-)

    Close to 15% of the nation's mortgages are either delinquent or in forclosure.  Let that sink in.

    The MBA's chief economist, in commenting on the release of that report last week, said this:

    "Despite the recession ending in mid-summer, the decline in mortgage performance continues. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP," said Jay Brinkmann, chief economist of the MBA, in a news release. "Over the last year, we have seen the ranks of the unemployed increase by about 5.5 million people, increasing the number of seriously delinquent loans by almost 2 million loans and increasing the rate of new foreclosures from 1.07% to 1.42%."

    The bold quote (which is a slam from a progressive perspective being delivered by one of the nation's pre-eminent capitalists) is aimed at Geithner and Bernanke, in case anyone wonders.

    "Well, yeah, the Constitution is worth it if you can succeed." -Nancy Pelosi, 6/29/07.

    by nailbender on Sat Nov 28, 2009 at 10:15:46 AM PST

    [ Parent ]

    •  yeah, great comment, that is why I keep saying (7+ / 0-)

      that this idea that the MSM keeps pushing, that somehow Bernanke 'saved the nation' from a severe depression is laughable at best.

      The 'only' people he saved are the Wall Street crowd and the Banks.

      The rest of the nation (you know, people that actually work for living) are going to be paying for this for decades to come.  

      America is the only nation in history which miraculously has gone directly from barbarism to degeneration without the usual interval of civilization.

      by Badabing on Sat Nov 28, 2009 at 11:13:36 AM PST

      [ Parent ]

    •  I know little about economy, (5+ / 0-)
      Recommended by:
      tmo, bablhous, nailbender, relentless, Badabing

      but the use of GDP as a marker of a healthy economy has always left me feeling sick.  It's likely due to the worsening employment rules and expectations we American have had stuffed down our throats: longer hours, less pay, fewer benefits and more, a lot more responsibility.

      A healthy economy based on a rising GDP doesn't necessarily make for a healthy nation.  In our case, it has made some people very wealthy and most others very, very tired.

    •  Commercial loans are going to become (3+ / 0-)
      Recommended by:
      nailbender, joanneleon, Badabing

      a great big issue too and they know that.
      Most commercial loans were five-year balloon loans, and 2005 was a very big year for commercial we'll be seeing a tough year in 2010.

      Just like with homes...with tight credit and falling values getting a new loan just isn't going to happen for many.
      Then as commercial real estate is foreclosed prices will be brought down even more...
      and then what caused the real problem before... defaults trigger the default of derivative securities using the loans as collateral and that triggers the credit default swaps obligations....
      of whoever bought the cds on them. There are usually many more naked CDS than those bought by anyone with ownership interest

      Have we quit paying off those pure bets yet?

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