Ben Bernanke’s legacy at Fed if any is still uncertain...
Posted in the Banking Forum
#1 Jan 5, 2014
Read this: Ben Bernanke will step down as chairman of the Federal Reserve later this month after guiding the institution and economy through one of the worst periods in its 100-year history, but leaving a legacy that has yet to be determined.
Ben Bernanke, who became chairman in 2006, confronted a housing bust, mortgage industry collapse, and global financial crisis, attacking them with bold measures that pushed the central bank to the limits of its legal authority. But he, like many economists, lawmakers, and policy makers, FAILED TO FORESEE THE CRISIS IN THE FIRST PLACE, ALLOWING BUBBLES IN THE ECONOMY TO EXPAND TO THEIR BREAKING POINT, ALAS!!!!!
It is not my writing but the common consensus...My particular complaint is that Ben Bernanke failed to comprehend the fundamental difference between The Financial Assets (Stocks, Bonds and Financial Investments) and the Real Assets...So far, the economic recovery is very slow at best despite the Sky-high Dow Index!!!
To further the understanding of Difference between Financial and Real Assets -
Answer: A financial asset is any INTANGIBLE asset a person may and may not have control over. A real asset is any TANGIBLE asset a person may have control over like A House....
One would feel safe to own the tangible assets and physical investments that you can touch. It is an investment in a tangible, hard or real asset or personal property. This contrasts with financial investments such as stocks, bonds, and other financial instruments: A quote from Investopedia!
#2 Jan 5, 2014
In case one doubts about my contention of a slow economic recovery, let me post the facts:
A) The long term unemployed: 1.3 m after one year;
B) The short term Unemployed: 10.0+ m (for less than 52 weeks)*
*U.S. employers added 169,000 jobs in August, nudging the unemployment rate down from 7.4 percent to 7.3 percent, the U.S. Bureau of Labor Statistics reported Friday.
“[T]he number of unemployed persons, at 11.3 million, and the unemployment rate, at 7.3 percent, changed little in August,” the report notes.
“The civilian labor force participation rate edged down to 63.2 percent in August,” the report adds.
In fact, and this is worth noting, the last time the labor force participation rate was this low was in August 1978
C) The National Debt climbed to $ 17+ Trillions and the Fed accumulated $ 4 Trillions purchase of US Treasury Securities
In conclusion: But the ultimate success of these programs may well be judged by whether the Fed, under Bernanke’s presumptive successor, Janet Yellen, can withdraw the massive amount of stimulus before igniting inflation or delivering new shocks to the economy by Megan Woolhouse
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