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…

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

Updates: Bernie Sanders I-VT seeks to put hold on Bens renomination; Black Swan says he will shun public life if Ben reconfirmed; Mark Zandi agrees double dip for housing ahead; Flashback: Bernanke in Denial 2005-2007

Update 2: Breaking on CNBC via Politico Bernie Sanders I-VT trying to put hold on Bens renomination hearing tomorrow. But they seem to have the 60 votes they need. Also today Taleb, of the Black Swan said if Ben is reconfirmed he will leave public life, seriously:

Nassim Taleb, the author of “The Black Swan”, said he would retreat from public life if Federal Reserve Chairman Ben Bernanke gains a second term at the helm of the central bank.”What I am seeing and hearing on the news — the reappointment of Bernanke — is too hard for me to bear,” Taleb wrote on his blog on The Huffington Post.

“I am not blaming Bernanke (he doesn’t even know he doesn’t understand how things work or that the tools he uses are not empirical); it is the Senators appointing him who are totally irresponsible — as if we promoted every doctor who committed malpractice,” he wrote.Taleb wrote he will not take part in interviews in the press and will not go to the World Economic Forum in Davos in January.

“I need to withdraw as immediately as possible into the Platonic tranquility of my library, work on my next book, find solace in science and philosophy, and mull the next step,” he wrote, adding that “I will only (briefly) emerge from my hiatus when the publishers force me to do so upon the publication of the paperback edition of The Black Swan.”…

Update: Boy it is exhausting having these fancy pants academics and/or advisers to MAC and Obama come along and agree with MiM months after we take a position, like being Cassandra, it sucketh big time. Now I just heard Marty Feldstein agreeing on Kudlow too, lol. To be fair Feldstein came out on this in October...sure now that it’s COOL to say there is a double dip ALL the kids wanna do it!

Soon Orszag and Krugman will be the cheese, and we all know the cheese stands alone.

Mark Zandi of Moodys (who will be at the big job summit this week, and who is at every Nancy Pelosi jobs bill panel as well), the man who advised MAC and later the Congress on the stimulus, is now forecasting a second leg down in housing, a big one, the one we and others have been yammering on about for months.

Maybe now that one of the chosen few who get listened to (despite often being quite wrong) and whose ideas are often quite unsuccessful (see WSJ on Orszag and Stiglitz’  EPIC FAIL on the risk posed by FAN FRED that somehow gets them promoted and invited to all the summits and now they help design all our economic policy and even our healthcare system!!) is on board with the fact that housing is in imminent danger of collapsing under the continuing deterioration of employment and the failure of the mo mods. Well maybe now they will do the damned HOLC and get it done.

FDR did it, in out boom,. Buy the home loans from the banks,w e already own them in FAN FRED anyway, write down 20% everyone underwater, boom, done. Let homeowners pay it off via their taxes to the government. Give a payroll tax holiday. Stop the uber spending in areas that don’t help the underlying economy. The entire 78 billion directed to housing is still sitting there waiting to be paid out on permanent mods that aren’t happening.

The meltdown of the U.S. housing market is not over yet, and home prices will soon start trekking downward again as a flood of foreclosures looms, a well-known economist said Wednesday.

Home prices, as measured by the Standard & Poor’s/Case-Shiller U.S. National Home Price Index, will trough in the third quarter of 2010 after declining 38 percent, Zandi said. The index peaked in the second quarter of 2006 and hit a trough in the first quarter of 2009, a drop of about 32 percent. Home prices in many regions have been rising.That is because foreclosure sales fell over the summer and fall as mortgage servicers have tried to put stressed homeowners into the Home Affordable Modification Program and other modification plans, he said. “This lull in foreclosures sales has resulted in the price gains in the past few months,” he said.

“Foreclosure sales will increase, and home prices will resume their decline by early 2010 as mortgage servicers figure out who will not qualify for a modification,” he said.

Zandi said 7.5 million foreclosure sales will have taken place between 2006 and 2011. The majority of these sales, however, have not emerged yet, with 4.8 million foreclosure sales expected between 2009 and 2011….

(more…)

December 2, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

Must See TV: The Fed COMPLETELY missing the Housing Bubble….

over and over they said it wouldn’t  happen….as it was happening….to give Ben credit he notes in one clip below (as chief of W’s Council of Economic Advisers, before he was head of the Fed) that he is ‘sure’ the banking regulators are monitoring the underwriting of the loans..of course the unregulated brokers were not and most of the regulated banks had lowered standards beyond belief….Greenspan helped create that bubble and Ben failed to address it….

Exit question: When TOTUS puts Larry Summers in there in 2010, will he do any better?

Courtesy of alanhowitzer

June 16, 2009. Tags: , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

Bill Fleckenstein dissects Greenspan’s OpEd

Vodpod videos no longer available.

Apparently Alan forgot this as well as everything,he learned personally from Ayn Rand:

(more…)

March 13, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Housing, Uncategorized, Wall St. 2 comments.

Obama Healthcare Plan: Pushback on the Hill…Orszag’attacks’capitalism..Grassley fires back over proposed Medicare Advantage elimination…

Vodpod videos no longer available.

Airtime: Tues. Mar. 10 2009 | 4:18 AM ET

A preview of the Senate’s scrutiny of the President’s plan for healthcare reform…and discussing the administrations involvement in business, with Sen. Charles Grassley, Senate Finance Committe ranking member (R-IA).

What you mean it isn’t all, ‘the days of wine and roses’? You mean once the Kumbayah Summit is over some Critters begin to balk at Health Care restructuring aka Medicare Cuts??No!

What happened to the magical rainbow ponies that mean old Hillary just didn’t understand how to work with? What, you mean some Critters don’t want to cut Medicare when most of their voters are Seniors? Really? Gee whoudda thunk it??

You mean you can start out trying to do something good for America, and get twisted inside out upside down and then lambasted for it? No!

You don’t suppose someone will later use this against Team Obama and the Dems as an ‘overreach’ in an election do you?! Nahhhh, Hey at least fellow DEM candidates won’t use it against Team Obama, cause that would be wrong! What’s that you say? Obama used Harry and Louise ads against Hillary in the primaries, modeled after GOP arguments against UHC? GASP!

BWAAAAHAAAAAAHAAAAAA!!!!!

AND THEY ARE GAMBLING IN RICK’S PLACE! SHOCKAH!!

The Note:

…But, health care reform will happen in the halls of Congress, not at White House summits. And things were a bit more heated on Capitol Hill today when Obama’s Budget Director Peter Orzsag discussed health care reform with the Senate Finance Committee.

The budget proposed by the President, Grassley pointed out, would cut funding for Medicare Advantage programs by more than $170 billion. Seniors enrolled in Medicare Advantage programs account for nearly a quarter of all Medicare enrollees, according to the Kaiser Family Foundation.

“Question, if we take $176 billion out of this Medicare Advantage program through plan bidding, how many of the ten million beneficiaries enrolled in Medicare Advantage do you estimate would lose their current coverage?” asked Grassley.

The budget director took the opportunity to “take a step back” and consider the entire logic behind the Medicare Advantage programs, which are subsidized by the government.

VIDEO AT ABC HERE

Audio here

“First, I know many people believe that capitalism is founded on private markets, and it is.  But I very firmly believe that capitalism is not founded on excessively high subsidies to private firms.  That is what this system delivers right now,” said Orzsag. “For every Medicare beneficiary in Medicare Advantage, the federal government pay $1,000 more than covering the same beneficiary under traditional fee-for-service.  In addition, it is true that Medicare Advantage plans then take part of that extra payment and deliver it in the form of either additional benefits or lower premiums to beneficiaries.  But the data also suggests that every dollar of additional benefits costs the federal government $1.30 in cost.  So what we’re doing is we’re all paying $1.30 in order to deliver a dollar to a subset, 20 percent, of Medicare beneficiaries.  I don’t think that is competition.  I think that is an unwarranted subsidy.”

The attack on the programs, which Grassley has championed, drew a heated response from Grassley.

“Well, you’re going to take half of my time lecturing me on capitalism,” said an agitated Grassley, “Can you answer — can you answer my question about how many of the ten million beneficiaries enrolled would you estimate would lose?  And if you can’t give me a figure on the savings, how much comes from less enrollment versus less expenditures?  At least tell me how many of the ten million you think will go because, in 2007, your agency that you headed at that time said that it would cause plans to leave the program and it would effect my area of the country, rural America, more than urban America. So I want to make sure that we — if we have a national system of health care, it’s going to deliver the same thing in Iowa as it does in California.  Because, for 40 years, it didn’t.”

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March 11, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Economy, Film, Healthcare, Hillary Clinton, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. Comments off.

Memo to Team Obama: The Smartest Guys in the Room Model Does Not Work…

From Charles Krauthammer:

The list is long. But the list of causes of the collapse of the financial system does not include the absence of universal health care, let alone of computerized medical records. Nor the absence of an industry-killing cap-and-trade carbon levy. Nor the lack of college graduates. Indeed, one could perversely make the case that, if anything, the proliferation of overeducated, Gucci-wearing, smart-ass MBAs inventing ever more sophisticated and opaque mathematical models and debt instruments helped get us into this credit catastrophe in the first place.

And yet with our financial house on fire, Obama makes clear both in his speech and his budget that the essence of his presidency will be the transformation of health care, education and energy. Four months after winning the election, six weeks after his swearing in, Obama has yet to unveil a plan to deal with the banking crisis.

We need to get in a team of regular Americans on these ’round table, summit,cocktail party, bs sessions on the Hill. Whenever the Geniuses get together it is a frakkin clusterfxxk

Ideally we should send follow the Nextel commercial model for governance, firefighters, roadies and UPS folks do our representing :0) We were supposed to get that with the House, but clearly it ain’t happenin, look at Pelosi vineyards and the Top 10 wealthiest Critters, their seats are good as the gold they can spend to keep them…

try to make it to a Tea Party or call your Critters when they roll out these goofy proposals that clearly are unworkable to markets and Main St, but the critters think are swell…

March 6, 2009. Tags: , , , , , , , , , , , , , , , , , , , . Economy, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. 2 comments.

Update: Alan Greenspan is still making messes…Thomas Friedman is an Idiot…

www.Americanworker.org

Greenspan who made this bubble is onto the same solution, just give AZ housing to immigrants, what a maroon:

There also are more unconventional approaches such as mortgage holidays, easing immigration rules to allow into the U.S. more skilled legal foreign workers who could up distressed and foreclosed homes in markets such as Phoenix and Las Vegas…..

Former Federal Reserve Bank Chairman Alan Greenspan floated the idea last year of easing U.S. immigration laws to allow more skilled foreign workers to enter the country. He contends those workers would buy up vacant, distressed and foreclosed homes in markets such as Phoenix while also taking hard-to-fill jobs.

Gareshe said such a plan could help increase housing demand, but she notes the political unlikelihood of the approach and wonders how much legal immigration would be needed to actually achieve those goals. There also is the question of whether U.S. companies, that long have lobbied for more skilled foreign workers, are in a position to hire them now.

Yes, an idiot. His proposal in the NYT is to OUTSOURCE THE FORECLOSURE CRISIS.  By bringing in tens of thousands more H1B visa workers to buy up the houses Americans have lost to foreclosure.

Way to spark  protectionism there Tommy Boy!!  The NYT hates Americans betcha they think more H1B visa holders would buy more of their rag newspaper so MoDo can keep feeling important…

Cause American workers aren’t pissed enough that Wall St and self proclaimed GENIUSES like Friedman tanked the markets and caused our equity to vanish along with our jobs

Let’s totally replace Americans in EVERY ASPECT of American life and move them right into our houses!!!

THOMAS FRIEDMAN YOU ARE A MORON, I CAN’T THINK OF ANYTHING THAT WOULD SPARK MORE OF A PROTECTIONIST BACKLASH THAN SUGGESTING WE MOVE FOREIGN WORKERS RIGHT INTO OUR JOBS AND OUR HOUSES, OUR AMERICAN DREAM OUTSOURCED ALL IN ONE SHOT

WAY TO SPARK PROTECTIONISM AND A TRADE WAR TOM!

HEY HERE’S AN IDEA HOW ABOUT WE OUTSOURCE MORONIC COLUMNISTS AND PUNDITS WHO ALSO ONCE THOUGHT THE IRAQ WAR WAS GREAT! YOU FRAKKIN IDIOT?!

Tom quotes INFOSYS an Indian company that replaces American workers here in the US with H1B visa holders who work for half as much…..way to inspire Americans to get an engineering degree Tom..but hey India sends their citizens here for their advanced degrees so I guess it is convenient huh?!

I  have suggested we give our VETERANS low rate loans for these houses, guess we can’t have Americans who sacrificed so much for all of us getting a home;

Cause after all, this comes from the popular punditry view of Americans as spoiled and lazy right Tom? We need H1 B visa workers to show us how to work hard and live the American dream, not Americans right? Not we schmucks whose immigrant grandparents worked their axxes off so we would be born here and live that dream right?…FRAK YOU FRIEDMAN

Here’s a frakkin idea, why not have our government work for US and have India’s government build good jobs and houses for the Indian people…..

I won’t link to it. On CNBC Lefrak says he and others have a similar plan to propose to Obama in a few weeks.Don’t do it Team Obama..the backlash will be incredible..

Yeah we are built by immigrants and dreams, the American dream, and H1B visa workers still come here every day, but we should not actively seek to replace American homeowners and workers with blanket policies that do not help Americans. India has their very own government to help them, how about ours helps us? Or do need to ask in French for Team Obama to find us couth enough to get attention?? Aidez-moi Obama!

These very same morons suggest we have less children too…they want us to go extinct I take it..frakkin idiots…Friedman and his ilk like to think their ideas are good for the world too, will the brain drain Friedman proposes be good for India, I think not. …

February 12, 2009. Tags: , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Housing, Music, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 1 comment.

News Wrap: FED announces MBS purchase details..guess who got tapped as asset managers?…Delay to Son of TARP?:Congress pushes PEBO for Stimulus details…Case Shiller Housing Index: Record Declines Increase…Hank Paulson is Jordy Verrill…

If you said Golden Slacks got tapped to handle the FEDs business, DING DING DING…give that taxpayer a cigar!

Well, we all knew it was coming, Bill Gross told us exactly what was coming. We love Bill Gross, the founder of PIMCO, who yes, also got tapped. We reported Bill’s very frank assessment of what was coming from the FED after their last meeting.

CNBC has the details, Steve Liesman broke the story on CNBC Reports this evening...

07-04-02_game_of_monopoly

Steve reports the FED will be purchasing 500 billion in Mortgage Backed Securities through the end of the second quarter of 2009. That is an aggressive pace says Steve. It will accept fixed rate agency MBS, Freddie Fannie, will buy 10 15 30 yr mortgages, funded by ‘creating money’, i.e. printing it.

The asset managers are required to put up “ethical walls” to separate the part of the company doing FED operations from those trading for profit, yeah good luck with that one, HA HA HAA!!  Blackrock, Goldman Sachs, PIMCO and Wellington Management will be the asset managers purchasing the MBS …

foxinhenhouseIt had to be done, it should’ve been done with TARP One, they said that was what they would do. Finally, question now is, can the people who created the excess risk and took the profits from the loss we are all suffering at the outset, now be trusted to manage our attempts to reverse the damage with taxpayer money? Not while getting these bonuses man. Let Barney Frank and Waxman and the CBC loose at hearings but we had BETTER see some SERIOUS strings on Son of TARP as Kudlow calls it.

This action by the FED is totally at their own discretion without oversight, as is everything they do, for more on that listen to any questions asked by Ron Paul of Greenspan or Bernanke at the Humphrey Hawkins testimony before Congress. We love it when Paul takes it to the man…

But guess who may ride to the rescue and act as a sort of check on the FEDs activities? FOX NEWS!!! YES! Interestingly, Fox Business is suing under the FOIA to get access to whom this FED and Treasury money is going and what collateral the Treasury and/or FED is getting in exchange, information they have refused to release…

…Kevin Magee, Executive Vice President, FOX News commented, “The Treasury has repeatedly ignored our requests for information on how the government is allocating money to these troubled institutions. In a critical time like this amidst mounting corruptions and an economic crisis, we as a news organization feel it’s more important than ever to hold the government accountable.”

Steven Mintz, Esq. of Mintz & Gold LLP, and legal counsel for the network added, “Despite the several requests for expedited information filed by FBN, it has become apparent that the Treasury will not cooperate without mounting legal pressure. Therefore, we have filed a complaint in the Federal Court in New York and ask the Court to make the Treasury provide the information sought by the journalists at FBN.”…

So to wrap, the FED is printing 500 million to try and get mortgages under control, something Paulson promised to do with the 350 billion he gave the banks. And ps, the Foxes are now officially guarding the Henhouse and actually collecting commission to do so, while getting access to basically controlling the debt markets with this power. Nice deal if you can get it eh?

I hear rumblings tonight that Congress may not open the ‘Son of TARP Stimulus’ for debate until late January now. I hope this does not mean they plan to wait LONGER on housing to see how this FED action goes. For Gawd’s sake ITS TEH HOUSING STOOPID!! Almost immediately we have a new spin on that report via WSJ which seems to have Congressional DEMS implying PEBO has failed to deliver on needed stimulus plans…

“The weak economy demands quick action, and that is our intention,” House Majority Leader Steny Hoyer (D., Md.) said in an interview Tuesday. “But significant work remains to be done. We need to do this right and make wise investments, plus members and the public need time to review it. So the timing very well may slip.”

Rep. David Obey (D., Wis.), chairman of the House Appropriations Committee, added, “I had been hoping that the timetable would be this week” for having a proposal in hand.

But Mr. Obey said Mr. Obama’s team, which recently met with congressional committee leaders, is still determining the details of the package it wants.

-snip-

“First we’ve got to have some signals called by Obama,” Mr. Obey said. “It’s hard to negotiate with somebody if the other party hasn’t decided what they want out of the negotiations.”

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December 30, 2008. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Big 3, CITI, citigroup, Economy, Entertainment, Fantasy, FDIC, Film, Finance, Foreclosures, Horror, Housing, Labor Department, Obama Administration, Politics, Popular Culture, Sci Fi, TARP, Unemployment Statistics, Wall St. Comments off.

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