Posts Tagged ‘lost decade’

Like Recessions? Better Get Comfy!

December 16, 2008

This is awesome!  Today, the genius Ben Bernanke announced that we will officially be in the longest recession in American history!  As much as I love worrying about my job and scrimping and saving to pay the bills, I can’t wait for it to get worse!  I hope I get to eat Hamburger Helper and Ramen every night!  Better get used to those PB and J’s!

I really can’t believe how bad of job Bernanke is doing.  He is driving this county off a cliff, and instead of applying the brakes, he’s stepping on the gas.  Remember the “financial abyss” Paulson warned us about when Congress didn’t approve the TARP bailout the first time?  We’re there, and Helicopter Ben is taking us all down with him.

I guess I have to cut him a little slack because he was only a professor at Harvard.  He never got any real world experience, so I guess he never really actually got to apply any of his theories until now.  The old saying is “those that can’t, teach.”  I respect elementary, junior, middle and high school teachers.  They believe in what they do and are trying to help make the world better.  However, everyone wants to have a cush job like a college professor.  You get tenured, you can’t get fired, you get fat pay, great benefits, 3 months a year off, paid sabaticals and a great pension.  I’m sure glad we picked such an idiot to run our financial system.

Ben was supposedly an expert on the Great Depression in his research as a professor.  I guess he didn’t study an recent history like the Lost Decade in Japan.  Can the problem be any similar?  Cheap credit, a real estate bubble, a credit crisis, a central bank that cut it’s rate to zero, and then a 15 year recession.  Wow.  Sounds like a blast.  Maybe Ben wanted to relive the Depression first hand!

Here’s a quote from Yahoo! Finance:  “Given how low interest rates are, the central bank said it planned to use a variety of unconventional methods to flood the banking system with credit and drive interest rates lower.”

Sounds like that’s exactly what we need right now.  More and more credit.  Floods of it to be exact.  Isn’t that how we got here in the first place?  How is it going to get us out of it?  It’s like telling someone who’s drunk that what they need is more tequila, not trying to sober up.

The American consumer is being criticized right now for cutting back, being frugal, and not buying big ticket items (with debt) like cars and appliances.  They should be lauded for setting a great example.  Helicopter Ben should realize what everyone, from banks to lenders to consumers, wants is a stable economic policy.  We don’t need more reckless spending and more and more debt.

I wonder what Ben’s personal finances look like.  If he practices what he preaches, he must have 10 maxed out credit cards and no savings.  He probably has all new appliances on the store’s credit card and he has huge car payments each month.  That’s supposedly what is good for the economy because he’s spending.

What we need right now is for Ben to make an early exit, and for Obama to name a new person to run the Fed, not this Geithner clown who shares Ben’s affinity for the printing press.  We need someone who will run our economy like we all have to run our houses.  We need to live within our means and manage our debt.  We can’t rely on printing new money whenever we get in a bind.  Why should the Fed be any different?

All I know is that right now, all the actions of the Fed and Washington have failed miserably.  Ben the Genius keeps thinking that more debt and credit will right the ship.  We have a credit crisis, but the underlying problem is a complete and total lack of confidence in our economic system.  The government also has a huge credibility problem because it has no plan, is running around like a chicken with it’s head cut off, and pumping trillions of dollars into the system.

Until we get a policy that restores confidence in the system and faith in our government, we won’t get out of this.  So grab a chair and a blanket, sit back, and enjoy your Hamburger Helper.

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