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Wednesday, July 22, 2009

Bernanke should be fired right now but Summers will not be any better even worse

Bernanke claimed yesterday that the FED did a good job - that guy got some guts claiming such an obviously wrong fact. putting interest rates to zero and printing money can be done by any monkey.
To see the crisis coming was his job he totally failed on is one option - the even uglier version would be he saw it coming but misled the public by claiming everything was contained. Either case is a 100 % failure.
The other obvious facts are his pathetic attempts to hide the truth as he was asked how big the losses are of the AIG and Bear positions he claimed to have no idea just a few billions - that alone is a reason to fire him as he should know on a weekly basis how big the losses are.
Furthermore he claimed that they make money on the other exposure they had which is also a lie as the biggest position he runs is to lend money at 0 (zero) to banks in trillions which is a negative interest rate and losses money on a daily basis.

Its amazing how much people can get away like Paulson and bernanke being responsible for hundreds of billions of losses but when a commoner just parks at the wrong spot they are allover you. The system stinks from all angles but the worst is they are preparing the ground for things to get even worse contrary to what they are claiming.

Still they want more power which is orchestrated by Summers from the background before he takes over and can blame everything on Bernanke once he has gathered the empowered new FED chairman post.

Excerpt

Bernanke Heads Back to Capitol Hill and More Questions

Federal Reserve Chairman Ben Bernanke heads back to Capitol Hill Wednesday, where he's likely to face more tough questions about the central bank's extraordinary actions to rescue the economy and its ability to take on even more responsibility.



Last year's taxpayer-financed rescues of insurance giant American International Group and others have touched a nerve with the public and some lawmakers.

(Watch Bernanke Live on CNBC.com starting at 1O am EST)

Although Bernanke's innovative policies have been credited with averting a financial catastrophe last year, critics worry about putting taxpayers' money at risk and creating a situation where companies may feel more inclined to take big gambles on the belief that the government will clean up their messes.

Bernanke, who is slated to appear before the Senate Banking Committee at 10 a.m. EDT, argues that a collapse of AIG [AIG 13.32 --- UNCH (0) ] would have put the entire financial system and the broader economy in peril.

Provisions included in the Obama administration plan to overhaul financial oversight, if they were to become law, would avoid a repeat of additional AIG-like taxpayer bailouts, says Bernanke.

The Fed chief also is likely to run into fresh skepticism from senators wary of expanding the Fed's duties to police big financial companies as envisioned by the administration. Some members of the House Financial Services Committee on Tuesday argued that the Fed failed to spot problems that led to the financial crisis in the first place.

Bernanke countered that the administration's proposal would be a "modest reorientation" of the Fed's powers, not a great expansion of them.

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