Ben Bernanke: ‘Joblessness, foreclosures pose hurdles to economic recovery’ in other Earth shattering news, water is wet!

But he still denies that overly loose Fed policy has anything to do with the housing bubble V1…

…meanwhile Greenspan told the ‘Crisis Cmte’, lol, that it was Congress’ that pushed the Fed to allow all those loose lending standards and predatory products, and no regulator could have caught it, yeah whatevs Alan, you abandoned your Randian views and tanked the economy with not one but 2 bubbles, the dot com bust thanks to your loose rates and later the housing bubble…

James Grant, editor of Grant’s Interest Rate Observer,  absolutely annihilated Greenspan on Bloomberg today during the hearing coverage-go to bloomberg for entire interview it is must see TV…

The lights actually went out in the Crisis Panel hearing with Greenspan, they continued in the dark for a bit, a metaphor from God surely, heh…

Bloomberg:

…Federal Reserve Chairman Ben S. Bernanke said joblessness, home foreclosures and weak lending to small businesses pose challenges to the economy as it recovers from the worst recession since the 1930s.

“We are far from being out of the woods,” Bernanke said today in a speech in Dallas. While the financial crisis has abated and economic growth will probably reduce unemployment (MiM here, italics mine) over the next year, the U.S. faces hurdles including the lack of a sustained rebound in housing, a “troubled” commercial real estate market and “very weak” hiring, he said.

The remarks reflect concerns by Fed officials at their meeting last month that the job market and tight credit would restrain consumer spending. At the session, Bernanke and his colleagues reiterated interest rates will stay very low for an “extended period.” He didn’t repeat that in today’s speech, while saying the Fed’s “stimulative” rates will aid growth.

“The economy has stabilized and is growing again, although we can hardly be satisfied when one out of every 10 U.S. workers is unemployed and family finances remain under great stress,” Bernanke said in prepared remarks to the Dallas Regional Chamber…

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April 7, 2010. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, TARP, Taxes, Uncategorized, Unemployment Statistics, Wall St. Comments off.

Consumer Credit drops sharply, again…

Update: 4/8: Retail sales came in higher than expected, and so did weekly jobless claims..Easter fell in March this year,  and if I am any indicator, lots of folks spent a bit extra on Easter candy to brighten what has been a dark Spring economically…I still do not believe there is a consumer led recovery in the cards…we have no credit and no jobs, it is math even I can do…

Yeah that much vaunted ‘recovery of the consumer’, is a mirage IMO. There is no credit, there are no jobs, therefore there is no recovery in consumer spending on the horizon, period.

Ain’t nothin’ goin on but the rent…

CalculatedRisk brings us the data from the FED that CNBC and the WSJ ignored-

The Federal Reserve reports:

Consumer credit decreased at an annual rate of 5-1/2 percent in February 2010.

Revolving credit decreased at an annual rate of 13 percent, and nonrevolving credit decreased at an annual rate of 1-1/2 percent.

Consumer credit is off 4.0% over the last 12 months.

Consumer credit has declined for 12 of the last 13 months
– and declined for 13 of the last 14 months and is now 5.2% below the peak in July 2008….

April 7, 2010. Tags: , , , , , , , , , , . Economy, Finance, Music, Obama Administration, Politics, Popular Culture, Unemployment Statistics, Wall St. Comments off.

Jamie’s Cryin’..again: Another Obama backer complains about Obama policies…

Are we officially sick of these idjits who backed Obama cryin about his policies yet? Cause it’s getting real old, real fast…Jamie’s cryin again..shoulda backed Hillary…at least I get to listen to a good tune whenever Dimon starts whining about Obama bank policy.

Read Jamie’s letter to shareholders this quarter here

Jamie got another big profile in the WSJ on his complaints about Obama, notice the title of the piece, Mr Dimon Goes to Washington, as if he is a man of the people fighting for us. Uhhh Jamie the narrative was written by your choice Obama, live with it:

…But when White House Chief of Staff Rahm Emanuel called a top J.P. Morgan executive to ask for the bank’s support in creating a new consumer-protection agency, the executive—former Commerce Secretary William Daley—said no, according to people familiar with the conversation. His boss believed that sufficient consumer safeguards were already on the books.

At a recent White House lunch with President Barack Obama and a handful of other executives, Mr. Dimon, 54 years old, complained to the president that the administration’s anti-bank rhetoric “isn’t helpful,” because it demoralizes businesses and employees, according to a person familiar with his comments.

Mr. Dimon’s disdain for the process has been crescendoing for some time. Last spring, he showed his irritation over the Treasury’s requirement that banks raise fresh funds before they quit TARP. Speaking at a June hospitality industry conference in New York, Mr. Dimon read aloud a fictitious letter to Treasury Secretary Timothy Geithner. “Dear Timmy, we are happy to be able to pay back the $25 billion you lent us. We hope you enjoyed the experience as much as we did.”…

Ouch!! Jamie was one of our picks for Tres Sec before it was fashionable…you know that dig hurt Timmeh…WSJ cannot seem to decide if it is pro Jamie here, they note his newly redesigned office like they were the NYT doing a hit piece on John Thain at Merrill…

…In a recent interview on the 48th floor of J.P. Morgan’s newly redone minimalist Park Avenue headquarters, Mr. Dimon showed little sign of backing down. “The incessant broad-based vilification of the banking industry isn’t fair and it is damaging,” Mr. Dimon said. “Punishing whole industries, whether you were reckless or not, just isn’t the way to do things.”

A number of political insiders say they’ve grown weary of Mr. Dimon’s protestations, viewing him as just another elite New York banker out to protect his turf. Some note that the bank profited handsomely during the financial crisis, when it scooped up securities firm Bear Stearns Cos. Inc. and Washington Mutual Inc.’s failed banking operations at bargain prices.

Rep. Brad Sherman, a California Democrat and senior member of the House Financial Services Committee, said J.P. Morgan benefits from its “ability to create awe and fear and a belief that the world will end if they are not pampered.”…

lol, tsk, tsk Jamie what did you expect?? seriously?? crony capitalism not feelin good when you arent the crony?

…Mr. Dimon has said he is trying to be constructive in dealing with Washington, hoping that his feedback can help lawmakers. And he isn’t fighting all of their proposals. He agrees, for instance, with the notion that banks shouldn’t be considered too big to fail and supports the idea that regulators should have the ability to wind down a failing institution. People close to Mr. Dimon say that he still supports the Obama administration, but has felt blindsided by some aspects of the overhaul…

…But Mr. Dimon’s patience with Washington soon wore thin as political leaders tried to force banks that had taken TARP funds to lend more and slash executive compensation. He was particularly rankled by a new rule putting visa restrictions on TARP recipients who wanted to hire skilled foreign workers.

Although the curbs didn’t affect many J.P. Morgan employees, Mr. Dimon was infuriated, telling his colleagues the move was “un-American,” say people who heard his remarks. On a conference call to discuss the bank’s earnings, Mr. Dimon referred to the TARP program as a “scarlet letter.”

Let’s all agree Marcy Captur D-OH is an idiot, cuz, ya know she is (anyone else remember the hearing when she accused Ben Bernanke of working for Golden Slacks, lol, she had confused him with Paulson pfft!), but the point is Team O isnt protecting the banks like he no doubt promised them he would, wink, wink, nudge, nudge…

In April 2009, Ohio Democrat Rep. Marcy Kaptur confronted Mr. Dimon at dinner at a Washington hotel with other lawmakers. “I have just come from my district and our Realtors told us this morning your company was absolutely the worst to deal with in terms of the foreclosure crisis,” Ms. Kaptur recalls saying to the CEO. “He looked at me, straight in the eye, and said, ‘That can’t possibly be true.’ ”

She rattled off all the people in her district who were losing their homes. Mr. Dimon replied that J.P. Morgan employed 20,000 people in her state, and that he often spoke with the governor and the mayor of Columbus, Ohio, where the bank has extensive call-center and data-processing operations….

Jamie’s feelings are hurt!@ Oh Noes!

…Mr. Dimon acknowledges that jousting with officials—especially during a heated regulatory climate—is simply a part of conducting business. But addressing a room full of J.P. Morgan investors recently, he said of the bankers’ taint: “It hurts your feelings a little bit.”…

Fools.

April 7, 2010. Tags: , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Wall St. Comments off.

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