Monday, November 16, 2009

Bernanke Clueless - No Surprise

This would be humerous if it wasn't so catclysmic for American future.

From Bloomberg

Federal Reserve Chairman Ben S. Bernanke said it’s “not obvious” that asset prices in the U.S. are out of line with underlying values after a 64 percent jump in the Standard & Poor’s 500 Index from its March low.

“It is inherently extraordinarily difficult to know whether an asset’s price is in line with its fundamental value,” he said today in response to audience questions after a speech in New York. “It’s not obvious to me in any case that there’s any large misalignments currently in the U.S. financial system.”

Of course its not. If you could not see the housing bubble, the most glaring bubble of all time, you are hopeless seeing asset price misalignment.

The truth is, he may just be lying through his teeth or just may not care. He would rather deal with the aftermath than focus on being unpopular in attempt to prevent the party.

“The best approach here if at all possible is to use supervisory and regulatory methods to restrain undue risk-taking and to make sure the system is resilient in case an asset-price bubble bursts in the future,” Bernanke said.

1 comment:

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