Bernanke: I Am An Ass And A Looter


That’s right, a looter.

And a fucking mendacious liar too.

“Although economists have much to learn from this crisis….I think that calls for a radical reworking of the field go too far,” Bernanke said in a speech at Princeton University, where he was a professor for two decades.

Standard economic models, such as the “workhorse” new Keynesian model, did not predict the crisis. Bernanke himself initially said the subprime crisis wouldn’t spread throughout the broader economy.

That’s because the New Keynesian model IS A FRAUD.

Got that?  FRAUD.




Because Keynes’ theories required that the Treasury run a primary surplus and refill itself, paying off all its debt, during good times.

This has never, ever happened.  Never.

Not once since The Fed was constituted in 1913.

Therefore, to base any economic “theorem” on this basis is a knowing, willful, intentional scam, a fraud upon the public, a pernicious scam that enables intentional acts of looting followed by “gun-up-nose” bailout demands.

It is a knowing scam because with foreknowledge over the space of nearly 100 years that government will not, now or ever, run that primary surplus, to provide “stimulus” as Keynes directs during downturns simply adds to structural imbalance that must come out of the people’s hide in the form of destruction of their purchasing power.

It cannot be otherwise.

Three areas of research he recommended were human behavior in times of panic, the role of liquidity in markets and how asset bubbles are created and pop.

Another damned lie.

C’mon Bernanke, you douche.  Let’s play wayback.

Was that a bubble?  Kinda obvious, right?  POP!

Ok, how about this one?

Pretty simple, right?

Ok, how about these?





Now, with regard to that last one.

And that’s not the only thing Denninger feels strongly about….. the feisty Midwesterner has nothing but scorn for the industry overall.

“I refused to take any stake in the acquiring firm. The shell game being played by these corporations is astounding,” he said.

Denninger has also steadfastly avoided investing any of his personal fortune in the Internet: “I refuse to have anything to do with the Nasdaq 100. There will be a shake-out, and when it comes, it will be ugly and it will happen fast.”

He might as well have been speaking of Black Week, April 10 through April 14, when the Nasdaq crashed.

The volatility of Net stocks in the past few weeks makes Denninger seem prescient, but his dislike for the unseemly marriage of breathless hype and dubious business plans is visceral.

“Amazon.com has proven there is a race to zero in margins. It should be a US$2 stock,” he said.

It bottomed at $4.

Fuck you Bernanke.

Bernanke claims that “the models (and he) couldn’t see it.”  Yet anyone who can read a chart saw it – the price is going from the bottom left to the upper right at dramatically greater acceleration rates than the broad economy.  All of these instances sported P/Es ranging from the 20s to north of 60.  AMZN had a P/E at the time north of 100.

Let me repeat the most-important line in that quote above for emphasis:

“I refused to take any stake in the acquiring firm. The shell game being played by these corporations is astounding,” he said.

The Tech Bubble and wreck an accident?  My ass. 


How do I know?  Because I was able to see the core of the network, as were thousands of others.  I wasn’t alone in knowing these were scams; everyone involved knew.  They didn’t give a damn.  They stole trillions of investor dollars.  They made off with the loot and you, the common man, got assraped.

Worse, you can count the number of people who went to prison on the fingers of one hand, AND NOT ONE GOT NAILED FOR KNOWINGLY FALSE – MALICIOUSLY SO – SECURITIES SALES.

So they did it again.

This time in houses.

You know what happened.  You could have a mortgage to buy a house as long as you were breathing.  No income, no job, no assets.  They even gave the loan a name – “NINJA.”  Bernanke knew this.  He was the supervisor of the banks.  He didn’t give a shit.  He knew damn well this crap was being securitized and sold off to people and that there was no way, on a long-term basis, these loans could be paid off.  These loans were given ONLY on the back of rising prices – nothing more.

Prices that had to rise 12% or more a year to cover a once-a-year flip costs – 6% for the buy, 6% for the sell, by the Realtards.  Maybe you’re good and negotiate 1% off per side.  Ok, the other 2% went to fees – fees that the banks got to keep, even if the paper was utter and complete CRAP.

Again, Bernanke didn’t give a shit.

Again, the bubble inflated.  This time in houses.  Bernanke claimed in sworn testimony as late as 2006 that there was no bubble and that housing prices reflected “strong fundamentals.” 


Again the bubble popped.  You know what happened.  Millions of Americans lost their houses, millions lost jobs. 


But this time, when the bubble popped, it popped a bit too early.  The banks got stuck with some of their own crap.  So Paulson and Bernanke went to Congress and threatened “Tanks in the streets” unless they got $700 billion.  They rolled Congress to save their friends who not only should have gone bankrupt, many of them should have gone to prison!

But even that wasn’t enough.  We still had a problem, and the market and economy was still falling apart.  So Geithner and Bernanke, really the same guy with two faces, went to Congress again and got them to force FASB to make accounting fraud legal.  That’s right – “make up a price for this asset and its ok on your balance sheet.”  They did it, and heh, the banks were saved (well, not really, but it looks like it.)

So again nobody goes to prison, the same people steal all the money, and Bernanke claims – again – that he couldn’t see it coming – even though he was the guy supervising it all!

What’s worse is that all the crap that was shoved in the box – trillions of it – is still out there, much of it off balance sheet!  Essentially every major bank has hundreds of billions of dollars of who-knows-what stashed where nobody can see or value it, exactly as ENRON did, and a couple of them have over one trillion in off-sheet exposure – more than enough to blow their capital to hell several times over if the valuations are not accurate.  Yet we can’t see, we can’t examine, and we can’t know.

If I can see this without having a PhD from Princeton, either Bernanke is a fucking idiot who bought his degree and has an IQ smaller than my kid’s soccer shoe size or he’s a damned liar and has been intentionally misleading the American Public along with Congress for more than a decade.

Pick one!

Ok, so there’s history.  None of which Bernanke claims he could “see” with his much-vaunted “models”, remember?

What do you think the banks are doing now, having gotten away with all-but-murder (and maybe some of that too) with not one but two full sets of scams in the last decade?

Why they’re doing it again.

Here’s some new charts – from today!

Bubble?  P/E over 60 and a parabolic move?  Gee, what do you think?

How about this one?  Parabolic ramp extraordinare! 

Heh, here we go again – with the same stock that did it before!  Another parabolic ramp and this one is about 15% of the NDX, which means that when, not if, it breaks, it’s going to crash the entire Nasdaq.  Again.

And it’s pal, another stock that did it once before, and was missed the last time too by the great Neo-Keynesians!  Yet again we have another parabolic move, especially in the last few weeks – but then again, this stock is known for that crap.  Go look back at 98/99 again.  And again, it’s radically overrepresented in the NDX, so when, not if, it cracks it will start the snowball too.

And what does Bernanke say now?  The same thing Greenspan said – they want higher stock prices and they don’t give a damn how they get them!

Well, there’s a problem – they already inflated the bubble.  It’s in your face – again.  It happened through yet more BS games with fraudulent claims of Keynesian economics which are nothing of the sort – absent the fiscal restraint and primary surplus that Keynes mandates during good times, these policies are nothing other than a raw SCAM and FRAUD upon the public.

Notice that the economy has not recovered.  Consumers have not delevered.  Of the ~$600 billion that has come out of consumer debt, nearly all of it – $588 billion – was defaults!  Businesses not only haven’t delevered, they’re adding more debt to buy back stock!

Yet the common man has seen no wage growth and no net job additions at all.  Not with 450,000+ claims a week coming into unemployment. 

This time, unlike in 1995, unlike in 2004, the ramp in stocks happened without any meaningful recovery in real final demand nor in the earnings capacity of Americans

Anyone care to guess how this bubble will end, and whether it can really drive a “real recovery”?

Bernanke ought to be at minimum impeached for willful and intentional dereliction of office – not once, not twice, but now three times over, in sequence.

And we, the people, have sat back and allowed it.

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