This morning the Senate Banking committee voted to allow Ben Bernanke’s Fed chairmanship to go to the full body for a vote . The vote was 16 yays and 7 nays.
The federal reserve policies going back to the early 90 were to drive the interest rates lower and lower,. By November of 2001 the fed drove rates down below 2%,. Thinking that it was necessary due to the 911 incident. Regardless of what your positions are regarding 911. Driving the interest rates even lower was just the opposite of what they should have done. We all know the affect it had one the housing bubble that blew this economy to pieces. But still to this dateI have not heard of anyone discuss the following results of cheap money.
Millions of Americans because of the cheap money, removed their money from savings and CD’s in local banks. And moved those dollars in to Wall Street in an attempt to make up for the poor return they were seeing from investing in their local community banks,. Many also moved into speculating on Real Estate, or buying and or building homes, with the anticipated profit from flipping those investments,. And for 4 years it worked,. In some cases real estate saw increases as high as 85%. Any sound minded economist with any brain at all could see that we were on a collision course with disaster. And sure enough millions of Americans got caught with their pants down. And here we are with 14 million units upside down in the market.
Ben Bernanke was at the heart and soul of this problem,. I have written about this many times,. But now we are faced with his re nomination. His involvement in our economy during the bush administration and under the poor economic leadership of Allen Greenspan. We have seen the U.S. Economy decline, and our national debt go thru the roof, due largely because of his policies.
The fact is and remains. The systemic result of cheap money, and political influences were the vehicles that drove us to where we are today.
Senator Bunning said this” I voted against Ben Bernankes initial nomination because I knew that he would continue with the Greenspan policies” Bunning was correct. Bernankes emphasis is on Wall Street ,not Main Street.
We will not turn our economy around , until we see rates on the street back to the 7-8 percent levels. Americans need to invest in their local communities,. Not on Wall Street. Community banks are the heart of local communities,. So we must understand that Bernanke understands that by keeping rates low. Americans in rural America will invest cash in Wall Street. Then those dollars ended up in phony mortgage securities, and derivatives. The chairman has printed trillions of dollars, driving the value of the dollar into the tank,. Billions of dollars were paid out in bonus’s to Wall Streeter’s,.. those dollars were loses to somebody in rural America.
Ben Bernanke should not spend another day as Fed Chairman. As Bunning pointed out today, time after time , Bernanke lied time after time, or was just plain wrong in his answers over the past 4 years of his term.
Senator Bunning’s opening remarks, and to those of us that have followed Bernanke’s actions and policies. Should convince every member of the public to call their state senator and tell them not to vote to confirm Ben Bernanke for another 4 year term. Better yet lets terminate the Federal Reserve.
I suggest you go to http://www.c-spanvideo.org/program/290766-1
“Nomination of Federal Reserve Chairman Bernanke”
The federal reserve policies going back to the early 90 were to drive the interest rates lower and lower,. By November of 2001 the fed drove rates down below 2%,. Thinking that it was necessary due to the 911 incident. Regardless of what your positions are regarding 911. Driving the interest rates even lower was just the opposite of what they should have done. We all know the affect it had one the housing bubble that blew this economy to pieces. But still to this dateI have not heard of anyone discuss the following results of cheap money.
Millions of Americans because of the cheap money, removed their money from savings and CD’s in local banks. And moved those dollars in to Wall Street in an attempt to make up for the poor return they were seeing from investing in their local community banks,. Many also moved into speculating on Real Estate, or buying and or building homes, with the anticipated profit from flipping those investments,. And for 4 years it worked,. In some cases real estate saw increases as high as 85%. Any sound minded economist with any brain at all could see that we were on a collision course with disaster. And sure enough millions of Americans got caught with their pants down. And here we are with 14 million units upside down in the market.
Ben Bernanke was at the heart and soul of this problem,. I have written about this many times,. But now we are faced with his re nomination. His involvement in our economy during the bush administration and under the poor economic leadership of Allen Greenspan. We have seen the U.S. Economy decline, and our national debt go thru the roof, due largely because of his policies.
The fact is and remains. The systemic result of cheap money, and political influences were the vehicles that drove us to where we are today.
Senator Bunning said this” I voted against Ben Bernankes initial nomination because I knew that he would continue with the Greenspan policies” Bunning was correct. Bernankes emphasis is on Wall Street ,not Main Street.
We will not turn our economy around , until we see rates on the street back to the 7-8 percent levels. Americans need to invest in their local communities,. Not on Wall Street. Community banks are the heart of local communities,. So we must understand that Bernanke understands that by keeping rates low. Americans in rural America will invest cash in Wall Street. Then those dollars ended up in phony mortgage securities, and derivatives. The chairman has printed trillions of dollars, driving the value of the dollar into the tank,. Billions of dollars were paid out in bonus’s to Wall Streeter’s,.. those dollars were loses to somebody in rural America.
Ben Bernanke should not spend another day as Fed Chairman. As Bunning pointed out today, time after time , Bernanke lied time after time, or was just plain wrong in his answers over the past 4 years of his term.
Senator Bunning’s opening remarks, and to those of us that have followed Bernanke’s actions and policies. Should convince every member of the public to call their state senator and tell them not to vote to confirm Ben Bernanke for another 4 year term. Better yet lets terminate the Federal Reserve.
I suggest you go to http://www.c-spanvideo.org/program/290766-1
“Nomination of Federal Reserve Chairman Bernanke”
The Chairmanship of the Federal Reserve, is no place for “On the Job Training” .
Bruce Olsen Candidate for Arizona Governor 2010
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