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Laughing All The Way To The Central Bank

February 1, 2012 by  

Laughing All The Way To The Central Bank

As the housing bubble expanded in the run-up to its inevitable crash, the Federal Reserve’s Federal Open Market Committee meetings became a veritable laugh fest.

Scribes have been perusing transcripts from FOMC meetings up to 2006 that the Fed released in January. They have found that, as the bubble expanded, the giddiness in the meetings likewise increased.

According to a blog called The Daily Stag, stenographers recorded an average of 16.5 guffaws per meeting in 2000. But by 2006, the knee-slappers had increased to 43.875 per meeting.

Some of the loudest howls:

  • Beard jokes: (Mr. Poole: “Okay. Mr. Chairman, it is a great delight to see a 200 percent increase in the number of beards around this table.[Laughter]“)
  • Innuendos: (Chairman Bernanke: “Still pretty large.[Laughter]“)
  • Nerd humor: (“Again, within the normal errors of Okun’s law—despite its name “law,” it’s a pretty loose empirical relationship[Laughter]“)

Then there are these, which demonstrate the joke was really on us:

  • From the meeting of Jan. 31, 2006: “Needless to say, it’s fitting for Chairman Greenspan to leave office with the economy in such solid shape. And if I might torture a simile, I would say, Mr. Chairman, that the situation you’re handing off to your successor is a lot like a tennis racquet with a gigantic sweet spot.[Laughter]”
  • And, from Vice Chairman Timothy Geithner in the same meeting: “I’d like the record to show that I think you’re [Greenspan] pretty terrific, too.[Laughter]  And thinking in terms of probabilities, I think the risk that we decide in the future that you’re even better than we think is higher than the alternative.[Laughter] With that, the economy looks pretty good to us, perhaps a bit better than it did at the last meeting.  With the near-term monetary policy path that’s now priced into the markets, we think the economy is likely to grow slightly above trend in ’06 and close to trend in ’07…”

It’s easy to think of these guys as just evil, which they are. But doesn’t this exchange between Ben Bernanke and Greenspan in May 2004 prove they’re also incompetent? “Hey, Boss, there’s this 2,600sf house downtown selling for $839k. Sweet deal, but it’s a bit of a stretch, you think I should hold off?” Greenspan told him to go for it, and be sure to get an adjustable rate mortgage that resets after three years.

He did, and now he’s stuck with a house that’s worth no more than it was then, just like the rest of us.

These jokesters know nothing more than how to create bubbles that eventually burst. But Ron Paul warned them all for years that what they were doing was going to lead to a crash. He didn’t know because he’s prescient. He knew because he understands Austrian economic theory.

It was the Keynesians who were caught with their pants down. It would make for a good joke if weren’t so sad — especially considering that Bernanke is doing it to us again by keeping interest rates at near zero for the foreseeable future.

Bob Livingston

is an ultra-conservative American and author of The Bob Livingston Letter™, founded in 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

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  • Sirian

    As long as the Fed remains in control of our – actually theirs – fiat money machine we will soon be driven off the cliff and the end result will be many levels worse than the “Great Depression”. Why do so many people refuse to understand this when it’s sitting right in front of them? Your guess is as good as mine.

    • TeeBurt

      Mainstream public doesn’t get it because our mainstream media doesn’t publicize it. It’s not in the local news, and unless you seek out sites as this you won’t know. I try to post articles like this on my facebook and email hoping others will read and subscribe. The word needs to get out in similar manner that the uproar over SOPA and PIPA was done, promoted by huge site like Craigslist, Google sign in, etc.

    • DaveH

      The Politicians certainly aren’t going to expose the Federal Reserve (with a few exceptions like Ron Paul) because the Fed is one of their main sources for Borrowing and Spending.
      The MSM isn’t going to expose the Federal Reserve (again with a few exceptions) because they are in bed with the Politicians who are in bed with the Federal Reserve.
      We will have finally arrived full circle to our Founders way of thinking when we all wake up and realize that Government people are going to look out for themselves and their Crony Capitalists first, and the people second (if at all).
      Read this excellent book by Lew Rockwell to learn how both major groups leading this country (the Welfare Statists and the Military Statists) are making fools of the rest of us:

      • Sirian

        Without any doubt the Lew Rockwell book you listed will be quite good I’m sure. I’ve been focused more on the John Flynn books here lately to get a better grasp, in a historical sense, of how they’ve managed to maneuver us into the position we’re in now. So far I’ve finished off three of them since last week and now working on “The Roosevelt Myth”, copyright 1948, very good, very revealing to the inner workings of FDR and his elite “Brain Trust”. Oh yes, of course the Democrat Party at that time also played a major role in pushing through and controlling many aspects of FDR’s ideas during his reign. They controlled both houses back then too. Sound somewhat familiar?
        I agree, the MSM will never expose the Fed even though day by day more and more people are learning all they can about it. Everything will ultimately come to a head and collapse, there’s no getting around it. Yet at that point it’s hard to say how many people will actually understand what’s happened. At that point though, it will be way to late. I pray it isn’t but. . .

  • http://personallibertydigest Gottaplenty

    The Bankers are a useful tool for a corrupt government to take our country down to a third world econemy, The O W s like it . Simply put ,more people can be controlled by less controlers. The present W H . occupent reeks of that type of desire for power..

    • eddie47d

      I guess you’ll have to explain what OWs means and what they supposedly like? I don’t know if you’re asleep or if I am. Now the OWSs(Occupy Wall Street) are very much against the Banksters in America and how they have ripped us off.

    • waltinseattle

      imust agree wit eddy 47, the O.W. are very upset. unlike the rightwing, they have no illusions to protect them, no iusions that cpitalism is alive and well in ‘our” land. they know it is hyjacked by thieves and nwo-transnationals who have hypnotized the right,who should be as outraged…but are enthralled…see vic above for an example…and note how he mutates a wide spread guiltiness for dishonesty and greed (which he knows is good) into a simplistic plot by those willy commies…NO, Vic the real villans include the FED, and wall street giants, the capitans of industry,the core of capitalism…oh perhaps the commies have already won! last night while we slept they snatched all those bodies and now….!

  • Double M

    “We have a natural, God-given right to our lives, our liberties, and the fruits of our labor. Protecting those rights in the only role that government ought to have in a free society.” – Representative Ron Paul, END THE FED, Page 210

  • eddie47d

    Good article in the Denver Post today about the Chief of the Royal Bank of Scotland who was given Knighthood by England in 2004. He (Fred Goodwin) built the Scotland Bank into one of the world’s largest. Yesterday Queen Elizabeth cancelled and annulled his Knighthood for the immense failures in bringing about the huge financial disaster that hit England. His failures and greed led to the recession and forced the taxpayers to bail him out. Goodwin walked away from the bank with a multimillion dollar pension. The world is full of Bankster crooks. He is now looked upon in the same category as Robert Mugabe of Zimbabwe but still filthy rich. Time to realize that few of them are on our side and handcuffs would make a nice present.

    • Sirian

      Believe it or not eddie – I agree.

  • allen johnson

    It all started when Pelosi became Speaker in chief and allowed Dodd and Frank to pressure banks into sub-prime and no down paymnent mtgs.
    At the time, unemployment was lees than 5%.

    Who is going to remind the Bush haters of this?


    • eddie47d

      Maybe so but banks and mortgage companies were only encourage to help out those seeking to buy a home. NO ONE told these mortgage giants they had to come up with schemes such as balloon payments which hit those going into foreclosure the hardest. Private companies should have used more caution instead they became greedy with all their bundling. The more money they made the uglier the scams. They were like a drug addict looking for another fix.

      • Vic

        Eddie, the scheme goes much deeper than just greed and robbery. See, for marxism to succeed and take the country over, according to their theories, the country has to be filled with poor and angry people. So, the housing bubble when lots of people are forced to buy vastly overpriced properties with a subsequent crash devaluing those properties effectively plays to that effect, because either way, if you got trapped into it it, regardless of you paying the mortgage, or going into foreclosure, or doing a short sale, you are down by substantial sum of money. Most of those trapped will pay that debt one way or another to the end of their lives wiping out their hopes of prosperity. This way it works exactly to that marxist end, to make as much people as possible poor and angry. So much to “help out those seeking to buy a home”…

      • rb

        Note too that new regulations to “help” the homeowner does not allow the lender to reduce the intereste rate on a mortgage to current rates as a means of creating a payment that can be managed if it is a federally insured mortgage. Over regulation of the industry has led to pretend programs that tie the hands of lenders to work with homeowners. Perhaps that’s the lender’s way of passing the buck but it’s the truth.
        BTW Vic NO ONE stuck a gun to anyone’s head and told them to sign a mortgage on a ridiculously priced property. They willingly signed to by that home. NO ONE forced them. If people didn’t willingly keep paying padded prices for homes the prices would not have skyrocketed like they did.

        • rb

          oops…”they willingly signed to BUY that home….”

  • AnneOnymous

    Where is Oliver Stone when we need him? A picture is worth a thousand words and a movie drama (like in the vein of JFK) should get couch monkey’s off the Big Shot owned media and into a reality that the rest of us can see so plainly. This is how sleepers operate, stay away from reality and concentrate on fantasy, be a ‘selective’ believer and never, EVER admit to being wrong.. Well, Stone is king of political fantasy which in reality could actually be the truth. Exploit these creeps and others like them on the big screen and watch them all flee like rats to a non-extradition Nation.

  • waltinseattle

    agree with Eddie 47 O.W. kows the score better than the hypnotzed rightwing. knows the truth of Trans nationals and nwo fronts… vic,maybe the commies played invasion of the bodysnatchers on us and took over all the investment bankers, the fed, all the capitans of all those great firms, the heart of our system…the rating agencies, the quants who bundled the product…..all the orriginators who passed it off to the fannies ad freddies and other holders like B. of A….


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