Is Bernanke Worse Than Greenspan?

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In the late 90’s I purchased stock that I didn’t understand because everyone was making money in the market. That was Greed. I bought a big house in 2002 because interest rates were low. That was Greed. False recommendations on tech stocks from Wall St. That was Greed. Enron and Worldcom was Greed. Subprime loans, more Wall St. Greed.
If banks would have not given loans to risky people, then we would not be in this mess. That was Greed. The Fed didn’t loan the money and they didn’t lie on company earning reports. The Fed is not to blame. Wall St. is all pump and dump. They hype it and we get greedy. The Fed and the Govt. should be putting the clamps on Wall St. but since they are in bed together it’s just going to be more pump and dump on us.

Drewzipher of OH 1:23PM May 05, 2008

Steps to Slavery - we are on the way!
First a Repbulic is formed by independent, self sustaining capable citizens, then government encroaches on the independent system and politicians learn they can get votes by offering to "take care of you and me". Once we start depending on the goverment to take care of of like the "Fed" and our Federal Government, the next step is back to slavery. It's quite simple,
1. Republic - freedom
2. Government - to provide saftey, law, and order
3. Then Big Government creates dependency on the Goverment
4. The sytem breaks down, jobs go elsewhere, the economy craters and
5. Slavery is what you get. We are overtaken by the Chinese, Indians, Muslims
Eliminate the FED before its to late!

w sumerford of TX 1:55PM May 03, 2008

Steps to Slavery - we are on the way!
First a Repbulic is formed by independent, self sustaining capable citizens, then government encroaches on the independent system and politicians learn they can get votes by offering to "take care of you and me". Once we start depending on the goverment to take care of of like the "Fed" and our Federal Government, the next step is back to slavery. It's quite simple,
1. Republic - freedom
2. Government - to provide saftey, law, and order
3. Then Big Government creates dependency on the Goverment
4. The sytem breaks down, jobs go elsewhere, the economy craters and
5. Slavery is what you get. We are overtaken by the Chinese, Indians, Muslims
Eliminate the FED before its to late!

w sumerford of TX 1:55PM May 03, 2008

To all the illuminated commentators who agree that we should abolish the Fed, I applaud you. These feeble and spineless dimwits don't know any better, but then again I don't blame them. A lot of people don't know the truth behind this fraudulent private corporation known as the Federal Reserve. A lot of people are totally unaware of the fact that the Fed introduced the ILLEGAL un-apportioned income tax (against the unratified 16th Amendment of the U.S. Constitution). The Fed usurped our own government in 1913 with their ridiculous proposititions, which by the way passed and we the people are now paying a high price for.
WAKE UP YOU IDIOTS...and get rid of this fraudulent system that need not exist. The dollar has, literally, no value at all. Gold and silver have the real value in this world. We don't need a system like the Fed whatsoever, as a matter of fact, our founding fathers tried to escape this type of central banking system...but obviously we don't care about the U.S. Constitution more and more everyday.
Get rid of the FED, let us restore our rights back (at least whatever that is left of it) and let us become a Constitutional state of a REPUBLIC once again!!!!

Arpi of CA 11:23PM May 02, 2008

Bernake is for the rich by the rich. He's a puppet. It's all about keeping the stock market afloat and overvalued. OK. They, then they additionally spent 200 Billion bailing out banks who wrote 800,000 mortgages to guys making 40G, let 'em go under, it's called free enterprise.. duh.... Then Bernake panics and drops the rates to appease the rich, and the poor average schmoe with his CD's gets screwed. Additing insult to injury, he's dropped the rates and mortage loans have INCEASED.... 6 for a conforming, 7 for a jumbo. What the heck of a bank profit while at the same time forcing the little man to cash in his 2% CD to finance the stock martket ponzi sceme created by the rich..... as gas costs 4$ and food is 20% more and there is "no inflation" noted by the experts. Because of the fake low rates the dollar is tanking. The rates should be 5% reflecting real inflation conditions. Let the stock market tank like it should. Let the bank's make less profit and become more competitive. Let's get the dollar back strong. How much do the banks and stock people want to make... when is enough, enough.

Matt Papuga of CA 1:53PM May 01, 2008

I am so glad to see someone come to the same conclusions that I have drawn, i.e., that the fed's actions have resulted in the export and import inflation and they have failed to ease the credit crunch; there is no relief for the beleagured home owners who are facing foreclosure. I see the actions as purely destructive and elitist.
Also, the idea that the feds are only concerned with core inflation (the rising price of everything except food and energy) is a deception. With the astronomical increases in the cost of food and energy, there will never be any money left over to create inflation in the items which are not food or energy. And so Bernanke and his cohorts can go around preaching that there is no real inflation because they are only looking at goods and services which are not food and energy.
I am currently reading Mr. Fleckenstien's work which is filling in a lot of gaps in my knowledge. I have also seen him on Bloomberg T.V. and I think CNN. It is so refreshing to hear and see someone that is not fearful of the truth.

Ari of NY 1:49PM May 01, 2008

This was an outstanding article. There are too few like it!
The Fed should be abolished! The Fed chairman -- the man who holds the purse strings of the most powerful country in the word -- is the most powerful man in the world. He's a dictator and a fool. I don't remember giving him the power to ruin my life. I don't remember voting to allow him to destroy the value of the savings that I worked so hard for. How did it come about that the most powerful man in the world is appointed and not elected? How did the Fed get so much power over our lives, and what can we do to take the power back? Isn't this supposed to be government 'by the people and for the people', and not government by the Fed for whomever they choose?

Mary of CA 1:23PM May 01, 2008

The Fair Tax Plan provides a prebate of about $2000/year to every legal citizen.
That makes it far more progressive than the current Income Tax System as no one pays any tax upt to the poverty level. Currently there is a 22% hidden tax on all people, including the low income people, the elderly, and disabled. Therefore, the Fair Tax, a sales tax of 23% to replace the IRS would be revenue neutral to the Federal Government, would collect taxes from the illegal aliens, 50 million tourists per year, and the underground economy and makes much more sense. It makes American exports 22% more competitive and will bring 13 trillion offshore dollars back home because there is no tax on corportate profits.
The Fair Tax will reduce compliance costs 400 billion dollars per year and 8000 man years lost to wasteful IRS tax returns. The IRS can monitor business receipts much more effectively because their auditing population will go down over 100 million to about 10 million. It will make the USA the most favorable business enviornment and bring those exported jobs back home.
It is the WAY to a more prosperous USA as it encourages saving, discourage overspending, and will stimulate the economy for many years to come.
It also eliminate the politicians carrot and stick "tax" routines come election time.

w sumerford of TX 12:25PM May 01, 2008

A national sales tax would bend over the little guy and benefit the super rich. That means it would be completely against the effect people want it to have.
Its only logical. Corporations and the ultra rich dont spend their money on buying stamps and gallons of milk. Corporate tax which pays the lions share of the taxes currently would pretty much go down to zero. There goes half the money that would have went to the IRS for the year.
Also, the ultra rich who make millions per year, they dont spend that on gallons of milk either, most of that goes to bank accounts or investments somewhere. Again, another 1/4 of the income would be gone from the IRS.
The little guy, who currently pays no tax, however, could not avoid the sales tax, because they actually have to spend the lions share of their yearly income on things like soap and toothbrushes. Thus they would go from no tax to the maximum tax rate (of whatever the sales tax rate is).
I cant believe how hard it is for people to get this point.
Taxes as a percentage of yearly income chart using sales tax
Ultra Poor - say 7 percent sales tax as a base, thus 7%
middle class - 5%
upper middle class - 4%
rich - 2%
ultra rich - 0% to 0.5%
Taxes as a percentage of yearly income chart using current system
ultra poor - 0%
middle class - 10 - 15% max
upper middle class - 28%
rich - 40%
ultra rich - 50%
This makes too much sense.
In any event, Greenspan screwed the country and now its Bernake's problem. Bernake doesnt have a decent solution at his disposal, because he is caught between death by inflation or death by foreign investors.
Greenspan should have let the economy fix itself. Normally it would have been the average sine wave pattern with relatively narrow tops and bottoms, but Greenspan used monetary policy to greatly raise the sine wave's top and now that the wave is on the way back down it has a LONG way to go, as in 30 years worth.

Raiddinn of VA 11:28AM May 01, 2008

Replace the Federal Reserve with open market interest rates. No one, Greenspan, Bernake, or the Government should be allowed to try to control the market by manipulation. Let's put the Fed's existence on the block. Let people vote to keep or abolish the Fed.
We need the same process for the IRS and the current inome tax system. We have the 2nd worst corporate tax policy in the world. It results in a business environment that exports American jobs and imports everthing else from food to energy.
Replace the IRS and Income Tax system with a simple sales tax at the retail level.
Let the citizens vote on how they choose to pay taxes. We need to return tax paying decisions back to the people.

w sumerford of TX 8:24AM May 01, 2008