Ben Bernanke sat in front of Congress and testified that he believed subprime mortgage problems were contained and would not effect the overall U.S. economy. I mean, in your estimation was the guy either:
a) lying
b) incompetent
Is either answer acceptable for the head of the world’s most powerful bank? How can anyone look back and argue that containment was a rational, valid argument?
Take a look at today’s market off 250 points with hedge fund meltdowns and the European Union injecting massive cash to keep a run on banks from occuring across Europe. All because of what? Subprime mortgage problems.
Seems like a global problem now.
Not to go all Cramer on you - but it’s a joke that Bernanke was allowed to sit in front of Congress and testify that things were contained; it’s a joke to think that things are getting better anytime soon; it’s a joke to think the global economy will not be affected.
From MarketWatch:
U.S. stock losses accelerated Thursday after reports of liquidating Goldman Sachs hedge funds further fueled credit worries that also sparked unusual action by Europe’s central bank, which stepped in with a large cash injection.
The latest developments “brought to the forefront the question of whether subprime is spreading globally, and will it put a dent in global economics, which have been a major stimulus underneath this 58-month bull market,” said Al Goldman, chief strategist at AG Edwards.
What do you think? Am I over-reacting?
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[Source: Blown Mortgage]
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