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Thread: Person of the year 2009- Ben Bernanke

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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by phattonez View Post
    All I see is him stating that everything would have gone to hell without the bailouts, but I don't see any argument for why that is so.
    Ill give you the short version.

    Our financial system (and many others) is primarily dependent upon "cash flow". Meaning, everyone has to pay their bills on time or pay interest/go bankrupt for default.

    Of derivatives and swaps arm of Lehman, they were leveraging in excess of 30:1 on Aaa rated securities (of which various bundles where comprised of sub prime loans to "ease the pool"). Once the cash flow's began to offset Lehman would have to sell assets, borrow money, or default (AIG). Eventually (with assets modeled to market value) you cannot issue anymore debt, and cannot borrow anymore... you go under; and that's what Lehman did. Such an act can spark a massive sell off in the mbs market, of which has dire consequences. Under mark to market, financial firms had to model their assets at market value; when the value begins to fall at enormous rates, there is an ever bigger bolt to capital. By the end of the month, the market begins to realize its first $1 trillion evaporation in wealth... in one day.

    And there was AIG, who was the worlds largest insurer against such risky investments unable to make the payments on the defaults. Now, even "supposed" strong firms like Goldman Sachs becomes short on its cash flow liabilities and could be forced to borrow. You read the article right?

    In comes TARP. Along with basically eliminating the existence of large scale investment banks, the ones that survived or did not get bought were then able to borrow all they will need to ease credit availability. Remember, banks get their loans first, and if they were hogging all the action, it could be unbelievably expensive (rates begin to rise ) for everyone else. But TARP could only last so long, and with new facilities being ushered by the Fed, in steps Bernanke with his promise. For the first time since the 1930's the yield on the 3 month goes to zero, which is a signal that more default and uncertainty is coming.

    But it did not. The Fed expanded their balance sheet 3x's over, and provided the market with the ample amount of liquidity to prevent asset devaluations. Combined with a global effort to enact stimulus (to make up for the massive drop in velocity), we see the reversal in asset devaluation.

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    Re: Person of the year 2009- Ben Bernanke

    Why wouldn't Time select the American People? I mean, in second behind Ben, was Stanley McChrystal....that I get. Third place went to the Chinese worker.....uh....yeah. Ben prints money he don't have...cow tows to Obama(I bet most of you thought Obama was saving the economy, now we hear it was Ben B from the INDEPENDENT Fed) and wins Person of the Year?

    The American People deserve Person of the Year. Why? Because 2008 is over and thus the election is over, we couldn't possibly give out the award last year, obviously, most people in this nation had a brain fizz upon entering the ballot. But this year.....we deserve the prize, our money being spent, our children being put into debt, our economy WE saved OURSELVES. By the hard work and cutting expenses it takes to keep business alive during this economy. Throw us a bone!
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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by phattonez View Post
    I'd just like to here the argument for everything falling apart. Everyone throws this around but I haven't heard an actual argument for it. How would everything have fallen apart without intervention?
    One big bank collapses, and the government decides not to bail it out. It defaults on all its obligations to its creditors (e.g. other big banks). They are forced to write off the assets, which in turn weakens THEIR financial position. This causes the next-weakest banks to collapse, and the government decides not to bail them out. They default on all their obligations to their creditors (e.g. other big banks).

    Rinse, repeat.
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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by Jackboot View Post
    "The Labor Department said Thursday that the number of new jobless claims rose to 480,000 last week, up 7,000 from the previous week. That was a worse performance than the decline to 465,000 that economists had expected."

    Yes, things are just gangbusters up to this point.

    A weak dollar is terrible for this country, and we will soon understand why, very soon. This argument about exports is nonsense, as we do not export much of anything anymore, as the left has pushed out manufacturing, and the unions are destroying what little we have left. Sure, we will see short term success, but this short sighted thinking is what has us in this horrible hole we find ourselves in, today.

    Those who want to see a weaker dollar, I do not believe they understand the importance of the dollar around the world. There is a reason that the dollar has been the global currency of choice, and we are threatening that world wide trust and respect. When inflation comes, and it will, we will not be hearing this happy talk, believe that!
    I notice you didn't offer any rationale why a weak dollar is a bad thing, or why a strong dollar is a good thing.
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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by Kandahar View Post
    I notice you didn't offer any rationale why a weak dollar is a bad thing, or why a strong dollar is a good thing.
    I certainly did, and as I said before, just wait until inflation hits, this one will be HUGE!

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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by Jackboot View Post
    I certainly did,
    Can you point me to the sentence in your incoherent rant about unemployment, "the left," and unions where you explain the benefits of a strong dollar and/or the problems of a weak dollar, so that I can address your point?

    Quote Originally Posted by Jackboot
    and as I said before, just wait until inflation hits, this one will be HUGE!
    And now an incoherent rant about inflation? What are you referring to when you say "this one"?
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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by Kandahar View Post
    Can you point me to the sentence in your incoherent rant about unemployment, "the left," and unions where you explain the benefits of a strong dollar and/or the problems of a weak dollar, so that I can address your point?



    And now an incoherent rant about inflation? What are you referring to when you say "this one"?
    A strong dollar means buying power, a weak dollar means less buying power, was this simplified enough for you?

    If not, I can then go in to more complex problems, but I doubt you will be able to keep up. Shall we discuss what will happen when the world dumps the dollar, and how much it will cost for you to then fill your gas tank?

    Who will you blame then?

    How will you defend this ponzi scheme at that point?

    When the price of milk and bread double, who will you point fingers at then?

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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by Jackboot View Post
    A strong dollar means buying power, a weak dollar means less buying power, was this simplified enough for you?
    Buying power for imports, yes. Why is it inherently a good thing to import more instead of producing it domestically? I'm not saying it's a BAD thing, but it's hardly an advantage. We also aren't able to export as much if the dollar is strong.

    Quote Originally Posted by Jackboot
    If not, I can then go in to more complex problems, but I doubt you will be able to keep up. Shall we discuss what will happen when the world dumps the dollar, and how much it will cost for you to then fill your gas tank?
    If oil-producing nations stop using the dollar (which I think is inevitable anyway), it will cost whatever the exchange rate is. At that point, there would be more negative effects to letting the dollar get even weaker than it was at the moment they stopped using it. But there are no such effects as of now.

    Quote Originally Posted by Jackboot
    Who will you blame then?

    How will you defend this ponzi scheme at that point?
    Ponzi scheme? Huh? A weak dollar is a Ponzi scheme? Are you just throwing around buzzwords you read in Business Week and hoping they'll somehow connect to form a coherent thought?

    Quote Originally Posted by Jackboot
    When the price of milk and bread double, who will you point fingers at then?
    Most of our milk and bread is produced domestically, not imported.
    Last edited by Kandahar; 12-17-09 at 05:13 PM.
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    Re: Person of the year 2009- Ben Bernanke

    Person of the year 2009- Ben Bernanke
    No, no, no... chance...

    Person of the Year:

    Barack Hussein Obama.

    Never has one POTUS done so much in such a short time to... LOL... unite the country.

    Never has one POTUS done so much in such a short time to change the country.

    Never has one POTUS done so much in such a short time to kill hope in the country.

    Never has one POTUS done so much in such a short time to justify the Nobel Peace Prize.

    Never has one POTUS traveled the globe as he has, demeaning us before world audiences.

    Hands down, and ass in the air, the winner is Obi-1.

    .
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

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    Re: Person of the year 2009- Ben Bernanke

    Quote Originally Posted by Kandahar View Post
    Buying power for imports, yes. Why is it inherently a good thing to import more instead of producing it domestically? I'm not saying it's a BAD thing, but it's hardly a huge advantage.
    So are you suggesting a weak dollar does not affect both imports, and exports?

    Now I am confused....?

    Who said anything about imports being "inherently good", this is nonsense, a product is good, if it is safe, if it is able to move, and move quickly, and finally if it is bottom line, profitable.


    If oil-producing nations stop using the dollar (which I think is inevitable anyway), it will cost whatever the exchange rate is. At that point, there would be more negative effects to letting the dollar get even weaker than it was at the moment they stopped using it. But there are no such effects as of now.
    Another dreamer I see, we will cross that bridge once we burn it!



    Ponzi scheme? Huh? A weak dollar is a Ponzi scheme? Are you just throwing around buzzwords you read in Business Week and hoping they'll somehow connect to form a coherent thought?
    The ponzi scheme is the federal reserve, and their constant booms and busts, do you enjoy being a puppet on a string?



    Most of our milk and bread is produced domestically, not imported.
    Supply and demand, these prices will go up because demand will fall, think....powered milk, just for a second, let that sink in....

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