…and with that he proved again why he gives scientists a run for their money when they try to determine how far down the evolution line one human can fall. The have chosen the specimen named Ben Bernanke and he happens to be the Fed Chief of the U.S. Federal Reserve. The results are not in but so far a piece of rock seems to have a higher IQ then he has.

Ok, let’s cut the sarcasm. I think the point is made. The recent actions by Ben Bernanke demonstrate why a pure economist with no business experience should never, I mean under no circumstances, be put in a position where monetary decisions will be made that affect other people.

Bernanke is one of those individuals who hands out drugs for drug addicts so that drug abuse can be controlled. Will it solve the problem?

Of course it will not solve the problem or do you really think because you give drugs to those who are addicted they wake up one morning and decide that they are clean?

I don’t know how many times I have said it but I will say it again:

The more Bernanke, and anyone else for the matter of fact, tries to deny the markets and the economy what they want and need and in this case they want and need a correction and recession respectively the longer the problems will persist and even built up. Once the problems gather enough steam they will blow up which will make the last few weeks look like a bad joke by a poor stand-up comedian.

Markets work best with no interference, especially not from an individual who is as qualified to make monetary decisions as a goat farmer in Eastern Iraq (I did not mean to insult the goat farmer).

Would you really ask your divorce lawyer to perform open heart surgery on your new girlfriend?

Well, then why would you want Bernanke to make monetary decisions?

For some reason I just can’t get rid of the idea that Bernanke got up one day and decided that he will be remembered as the guy who engineered a depression.

Will he do so?

He is on a really good path but since he is not exactly known for wisdom and knowledge of the markets I strongly believe that he is the type of person who can’t even succeed at failure (No, that is not a compliment but the longer he is allowed to treat the economy like his playground the harder it is to come up with ways to describe his complete incompetence).

Who picked that guy anyway?

Oh, yes…I forgot. I don’t think I have to say more then that.

I don’t know what the economy has done to Ben to be abused and treated the way he does but I do hope someone will stop him on his path of destruction. I don’t know who that person may be but I think it is a bit too late anyway so how about Ben slashes rates by another 300 basis points on Monday after Super Bowl XLII.

Why?

Why not?

It really doesn’t matter anymore and maybe Ben just wants to do it bit by bit because he is afraid of what happens when he gets it down to zero…maybe negative interest rates…at least until someone will explain to him why that is not possible.

Why did equity market rally on the news before settling the session lower?

For the same reason an alcoholic is happy when you give him a bottle so he can knock himself out.

Just wait till the liquor will loose the influence and the alcoholic wakes up the next morning and has to face reality. The problem that has caused the alcoholic to drink still persists. The same holds true for the economy.

I don’t want to repeat all the things that I have previous stated and that’s why I want to leave you guys with one final question:

When are we going to fit this guy for a helmet?

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It is not smart to play it safe but it is safe to play it smart.

Certainly past due...lol

Hello Volcker...??? Gonna need you as a scapegoat again soon to raise interest rates back through the roof in order to save the day from the future mess that may very well be in the works.

Of course this (todays cut) will not save the day. Neither will some stupid bogus rebate "stimulus package" - that the gov't will need to borrow some more in order to afford - just so we can (try and) encourage consumers to buy more of what they can't afford instead of doing what they should be doing, which is learn how to save.

The funny part is many of these folks will probably just end up using that money to pay for their gas or pay down their credit cards...lol.

Meanwhile, the USD will continue to bleed. Foreign countries USD reserve investments will get worse and worse as they will look to diversify those reserves. The Yen will probably strengthen putting more pressure on the (what may be dead) "carry trade" philosophy. Our assets will be cheap cheap cheap for foreign investments and (at least our financial sector) will continue to be bought up by foreign banks who could certainly buy some "influence" (dont kid yourself)....blah blah blah. Our government shows no signs that they even know how to reign in spending.

and oops... FGIC ratings cut today??? Yep.

This is interesting....I cant cut and paste from here but do a google search for "bank reserves go negative" and do some interesting reading.v

But hey....its not all bad....the Bedard deal to Seattle appears to may still be in the works...come on Angelos, pull the trigger eh?

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I think Ben has a migraine.

Couple articles echoing the same things mentioned
Good posts

http://www.marketwatch.com/news/stor...ist=TNMostRead
http://www.nakedcapitalism.com/2008/...ckman-ups.html

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Lack of money is the root of all evil.
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Ahhh, yes the 'economic stimulus package'. The first thing that comes to mind is....

Did you the statement that said the '' will create 500,000 jobs this year. Right, lets just assume that we believe that for a split second here is the first question:

If that is true how come we have not done that the past few years?

Simple answer:

Because it doesn not work.

What makes them think that the '' will have any impact at all. Ok, you mail rebates out to the population and the reason is that the economy is in deep problems (Thank's Ben for making sure the problems just increase in size) and you really think they will going to spend it to boost the economy. Right, a 1% '' package will have such a huge impact that...hmmm...what is it going to do again besides cost $150 Billion? Oh yeah, we get to that once we get there.

Anyway, does this guy ... ... remind you of Bernake a little bit?

I think I have used one emoticon to much today.

FGIC sure got downgraded and I doubt it will be the last downgrade we see across the entire industry.

The U.S. is so heavily dependant on foreign money in order to buy more things that it can't afford and since it seems that Ben gets his ideas off the back of a cereal box his solution is to slash rates and print more money so that the U.S. Dollar continues to lose value and foreign investment will dry up...I do think that he wants another depression...

Come on, even Tony the Tiger knows better then that.

Did anyone see Ben drink out of the fishtank the other day...?

Maybe we should let SpongeBob be the next Fed Chief...

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It is not smart to play it safe but it is safe to play it smart.

Thanks, I needed a morning laugh!

The USA is turning socialist, lets redistribute the wealth by sending out checks. Let's give everyone Gov health care! ARRGGGGGG.....SPEND SPEND SPEND that money!

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