Bernanke warns of catastrophic consequences if debt ceiling is not raised

[qh4dotcom]

http://www.reuters.com/article/2011/02/04/us-usa-fed-idUSTRE7126H620110204

[HOLLYWOOD]

Why, he can loan the same $9 Trillion he loaned to the banks, to Washington DC, you, his partners in crime.

Who cares where it comes from... it's all counterfeited toilet paper anyway.

This is more propaganda and fear institution for the ignorant and to ensure all his spending Dumbocrats vote yes to raise the LOAN DEBT AMOUNT to whatever.

There's 3 ludicrous things about all this:

1st: The debt ceiling is not a credit limit. Credit card limits are set by your lender, and they're not self imposed.
2nd: There's no cap on spending. It's the gap between spending and revenue that matters.
3rd: Nobody believes that the current debt ceiling can be maintained, even with aggressive Rand Paul/Paul Ryan-like austerity measures.


It's all a fony fiscal farce with the Federal Reserve

[raiha]

And then he says "Don't blame US Monetary Policy for the mess we are in. Timmy made me do it."

http://www.reuters.com/article/2011/02/03/us-usa-fed-food-idUSTRE71288420110203

[Matt Collins]

http://www.youtube.com/watch?v=5KoWRh1Y9IY

[Dr.3D]

Perhaps somebody can answer the one question I've been having this entire time.

Why do we need the banks so much that we had to bail them out to the tune of $900 billion?
If all of those banks had failed, wouldn't the free market take over for their loss and people would still be getting loans from other places?

[freshjiva]

Perhaps somebody can answer the one question I've been having this entire time.

Why do we need the banks so much that we had to bail them out to the tune of $900 billion?
If all of those banks had failed, wouldn't the free market take over for their loss and people would still be getting loans from other places?

Because if the likes of JP Morgan, Goldman Sachs, Wells Fargo, Citigroup, Merrill Lynch, and AIG fail, then you'd have widespread chaos in the credit markets that would spill into the rest of the economy, since credit is, roughly speaking, 50% of all capital. People would lose their checkable deposits at these banks, which totals nearly $200 billion, retirement funds would get decimated due to stock market losses, and jobs would be lost in the tens of millions from the domino effect into the rest of the global economy.

Of course, I'm just playing devil's advocate here :)

[Legend1104]

aaaaaaaaahhhhhhhhh!!!!!!!!!!!!! SOMEONE PLEASE SAVE US!!!!!!!

[Dr.3D]

Because if the likes of JP Morgan, Goldman Sachs, Wells Fargo, Citigroup, Merrill Lynch, and AIG fail, then you'd have widespread chaos in the credit markets that would spill into the rest of the economy, since credit is, roughly speaking, 50% of all capital. People would lose their checkable deposits at these banks, which totals nearly $200 billion, retirement funds would get decimated due to stock market losses, and jobs would be lost in the tens of millions from the domino effect into the rest of the global economy.

Of course, I'm just playing devil's advocate here :)

Oh, okay... I thought it was perhaps to save the member banks of the Federal Reserve and thus perpetuate the insanity.

[freshjiva]

Oh, okay... I thought it was perhaps to save the member banks of the Federal Reserve and thus perpetuate the insanity.

Well, you're actually somewhat correct in that remark. These ARE member banks of the Federal Reserve System, and they've been getting a lot of privileges through the Fed's discount window lending activities over the many decades.

[Pericles]

Perhaps somebody can answer the one question I've been having this entire time.

Why do we need the banks so much that we had to bail them out to the tune of $900 billion?
If all of those banks had failed, wouldn't the free market take over for their loss and people would still be getting loans from other places?

Who pays for the political campaigns and lobbyists?

[ClayTrainor]

The longer he puts it off, the more catastrophic the correction is going to be.

[Dr.3D]

The longer he puts it off, the more catastrophic the correction is going to be.

Maybe he knows that and is looking for someone to blame when the catastrophic correction does happen.