Sunday, March 24, 2013

New Critical Warning as 2013 shocker looms


New Critical Warning as 2013 shocker looms
Posted By: RumorMail [Send E-Mail]
Date: Saturday, 23-Mar-2013 20:27:27
SAN LUIS OBISPO, Calif. (MarketWatch) — Yes, another dark “shocker” before the end of the year, an unexpected “black swan.” And sadly for Fed Chairman Ben Bernanke — who hopes his “I saved America from economic collapse” illusion stays intact till he leaves office — he’s not going to get a dream ending to his Fed career.
Why? The shocker will happen before his scheduled exit in January, damaging Bernanke’s egocentric “hero’s legacy.”
The big shocker that economist Gary Shilling sees coming will hit before year-end. And it’s what we see as “Critical Warning No. 12” for 2013.
So let’s put all this in context, a quick survey going back four years when Bernanke was reappointed and he began his grand ego trip as the Great Savior of the American Economy, believing he was destined to do the job our dysfunctional politicians were incapable of doing.
True, Wall Street banks love Bernanke’s non-stop cheap-and-easy-money printing presses, even if bad for the rest of America. We called him the “Most Dangerous Man on Earth,” and “Black Swan’s” Nassim Nicholas Taleb was so shocked by the reappointment of Bernanke — certain to become Obama’s “greatest domestic blunder” — that Taleb went into isolation.
Now, four years later, Bernanke is even more rigid and dogmatic, hanging onto former Fed Chairman Alan Greenspan’s failed ideology pumping out bank QE stimulus while creating the illusion that he’s saving America from a dysfunctional gridlocked Washington that does nothing.
History will prove he’s made the economy worse, delaying the inevitable, blowing a new bubble, making the next crash ever bigger.
Benanke is Greenspan’s clone, repeating the same ideological mistakes

Why is Bernenke so uncompromising? It’s wired in the brain and DNA. The position as Fed chairman turns men into demigods who believe their own press, believe they alone have the answers. This happened to Greenspan who finally had to admit to Congress after 18 years he “found a flaw” in the “free market ideology” that he relied on in guiding America’s monetary policy for his tenure as Fed chairman.
Getty Images
Federal Reserve Board Chairman Ben Bernanke.

This same psychological phenomenon has turned the thoughtful scholarly Prof. Bernanke into Bernanke the Savior, Hero and Leader of the Free World Monetary System. It’s a syndrome seen so often by psychologists, behavioral economists and neuroscientists. As a behavioral economist and U.S. Marine veteran I imagine Jack Nicholson as Col. Jessup on the stand in “A few Good Men,” barking “you can’t handle the truth” at Bernanke.
Few investors wanted to hear the warnings for years before the 2000 crash. Nor the warning before the 2008 crash.
Back then, so-called gurus on Wall Street, Main Street’s 95 million naive investors and our clueless politicians in Washington were lost in denial. Humans too often prefer delusions and wishful thinking to the truth. That was Greenspan’s downfall.
And that’s also Bernanke’s sad mental pattern, what Taleb, a behavioral -finance expert, meant when he said about Bernanke, “he doesn’t even know that he doesn’t understand how things work,” that he can’t handle the truth if it doesn’t fit into the ideology he and Greenspan before him have imposed on the American economy for 26 years.
When he returns to civilian life, like Greenspan, Bernanke wants a $10 million book deal, huge lecture fees and a high-paying cushy consultancy with Wall Street. A big price that will be paid many times over by Main Street Americans.
MORE
http://www.marketwatch.com/story/new-critical-warning-as-2013-shocker-looms-2013-03-23

1 comment:

Anonymous said...

All C-R-A-P!

Ben Bernanke controls nothing. He's a front man - a sock puppet that does exactly what he's told to do. He's the great Oz, full of fire and sound and fury, that makes market changing pronouncements, testifies before congress, holds the very fabric of the world in his hands. But, the great Oz is a carefully crafted illusion, he is the front man designed to keep you subjugated and under control, and most of all to keep you from asking who are the real people that are screwing over mankind...

Bernanke is the illusion that keeps you from asking who are the people who own the Fed (we still don't know who they all are - which is exactly how they want it), why they think they own you, and how they convinced you how lucky you are to let them steal most of what you have. And, if you complain you are a bad American - a terrorist - when in fact, they are the real terrorists.

Time to drive a stake through the vampire's heart...