The real world knows not to expect anything constructive from the present White House. But, from the Federal Reserve Board, it becomes quite depressive and alarming.
Our Chairman was in Berlin, early this week, and disappointed the financial markets, by asking other countries to work together with the United States to right a skewed pattern of trade and investment around the globe, a move that would help worldwide economic stability.
Ben S. Bernanke said that a high savings rate among oil-producing nations and Asian countries continued to help depress interest rates by keeping financial markets flush with cash. But Mr. Bernanke warned against banking on the steady flow of cheap money — which helped stoke overly lax mortgage lending and the recently punctured housing bubble — over the long term.
Typical White House, Mr. Bernanke gave an almost academic discourse about global trade imbalances and his theory that a “global savings glut,” concentrated in the world’s poorer countries, had helped keep interest rates low and contributed to the United States’ high rate of foreign indebtedness.
Of course,Mr. Bernanke conspicuously avoided the topics that have fixated investors lately: the turmoil in credit markets, the risk of an American recession or the Fed’s readiness to lower interest rates at its policy meeting next week.
In other words, we (United States) have created a mess in the financial market. Now, you, the rest of the world, should work with us to fix it.
We (United States) have created chaos in hell in Iraq. Now, you, the rest of the world, should work with us to fix it.
We (United States) have a negative rate of savings. You, the rest of the world should stop savings.
According to our dear Chairman:
- Other countries must work together to fix my country's global imbalances
- We are the great advocate of a free market, but it is OK to interfere when we need help for fixing our economy built on debts, and more debts.
- We have spent over and over, and borrowed more and more, and now, you, the rest of the world, should help us to cover our excesses at home, and expenses in Iraq
Mr. Bernanke is learning fast from the White House, always blaming others for problems we have created.
Is Bernanke looking for an international bailout? Will he ask the World Bank for assistance?
Fannie Mae:
Another example of our financial negligence, and stupidity. How can we convince the rest of the world about our due diligence and good corporate governance, when the Executives of Fannie Mae, who have mismanaged $11 billion, are still in place? How can we explain that the shareholders, Congress and White House do not fire Executives who are cheating the investors, laughing at the public, and abusing certain homeowners for protecting their conflict of interest?
The Facilitator
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