You cannot get more confident than that, can you? With that level of insight you can now go out and make major decisions for your own future, such as, whether or not to buy a house, upgrade your car, perhaps even fly to Europe on the wings of hope. No? This is the kind of foggy thinking and direction we have come to expect from the independent organization that controls America's most important economic element America's money. Did he define an exit strategy for the money being fed into the system? Did he even describe where, or how, that money is doing anyone any good? Not so much.
Bernanke is the same expert who only last year told Congress wonderful fairytales about housing, the markets, and the economy just as the bubble was beginning its implosion. This is the also the Bernanke who, along with Geithner, in a desperate moment of panic made a deal with J.P. Morgan, taking on $30 billion of toxic derivatives from Bear Stearns. Even former Fed Chairman Paul Volcker thought the deal impelled the Fed to, "extend to the very edge of its lawful and implied powers." What an incredible understatement. The agreement viewable here, was not a loan as claimed, but an outright purchase of an ephemeral mountain of garbage. It was in effect a gift. Did anyone in Congress jump on this breach of law? Of course not. No one would dare question The Fed. Did anyone explain why Lehman was sent over into the abyss, but not Bear? Don't ask. You don't want to know. You also won't be told how it was possible that giant firms including A.I.G., were allowed to gamble with complex derivatives that their own executives didn't understand. The crumbs leave a trail from Wall Street, all the way to Congress.
You will note that the first signature on the hastily created agreement (linked above) is Tim Geithner's. You can judge for yourself with a little analysis of Tim's "signature," what help such a massive ego (IMHO), will bring to your neighborhood. While you're at it, also check out Morgan CEO James Dimon's scribble on the signature line. Let me know what you think he's all about. Looking at that signature, I doubt anyone really knows, but in the meantime, understand that he has more influence on your life than most of your friends do. These are some of the egos that were so overwhelmed with arrogance, and so confident in self intelligence, that there was nothing that the economic super-bubble would throw at them which couldn't be handled. As the world economy melted about their ankles, all they could do was panic, and in turn panic everyone around them.
When you listen to The Fed Chairman and his claim that he can tighten policy as needed to head off inflationary pressures, based on past record, you can now bet against him. Beyond applying common sense to his present prognostications, his track record suggests that he will not be able to reign-in inflationary pressures. You can assume that with the fast expanding money supply, inflation is returning for a visit that may be reminiscent of the late '70s. The amounts flying into the money supply are enormous, and making the assumption that The Fed will be able to "repurchase," or retract the process, is to assume the improbable. When Bernanke says things like, "I don't regret anything we've done," heed the arrogance in the context of the domain which is his sovereignty. Most importantly take everything else he says with a grain of salt, and let's remember that he's referring to such things as taking taxpayer money/debt for the bailing of institutions that should have been left to flail in the currents of the options available to them in law.
Are we to believe anything Bernanke, or his pal Tim, tell us? Nothing he did or said in the past was either rational, intelligent, or truthful. Alright, so it's easy to beat up on him. Oh, but wait, he's still in charge of The Fed. Along with Geithner, he remains in complete control.