Bernanke’s Mortgage Meltdown Miss Creates Credibility Gap

WOW. Very interesting to watch given hindsight. Well worth the 5 mins. It is incredible that the head of the Reserve Bank has such
a lack of fore site in relation to what the economy is doing. Makes you wonder how you keep your job when you are proven to be so very
wrong on such important issues.

Description:

CNBC interviews and Bernanke testimony dating from 2005 reveal either that Bernanke didn’t have a clue about the disaster that lay a few short months ahead, or someone frighteningly practiced at bureaucratic denial.

Although the 2008 crash induced widespread shock and awe among everyone from mom-and-pop investors who believed you “couldn’t go wrong” with real estate, to seasoned pension fund managers, there were some bright economists and commentators who saw it coming—not least among them Michael Maloney. The United States’ head banker, on the other hand, now that’s a different story.

This chronological montage (www .youtube.com/watch?v=INmqvibv4UU&feature=youtu.be) of CNBC interviews and testimony by now Federal Reserve Chair Ben Bernanke, beginning in 2005 when he served as chair of President George W. Bush’s Council on Economic Advisers, reveals either that Bernanke didn’t have a clue about the disaster that lay a few short months ahead, or someone frighteningly practiced at bureaucratic denial.

Bernanke’s obtuseness, real or feigned, is chilling in hindsight, as we watch headlines grow more ominous and reporters allude to the growing alarm about the dangerously inflated housing and subprime mortgage bubbles.

In July 2005, Bernanke, as Bush’s top economic advisor, tells a reporter there is no reason to be concerned about housing: