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Bernanke the businessman

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September 29, 2010 – Comments (4)

Headline: The heroic American entrepreneur Ben Bernanke earns $75 Billion and donates all of it to the American Government. 

To complete the picture, Daniel Gross could have mentioned that to earn this profit, Bernanke has (stolen from the American bank depositors) - crossed out - (printed) - crossed out - credited the Federal Reserve account with (2.3 Trillion - 0.8 Trillion = 1.5 Trillion) dollars. But that's extra information. Apparently, he figured his readers would just be happy to learn that Bernanke had a profitable year. 

Anyone here in Caps ready to match or exceed this investment performance? 

http://finance.yahoo.com/banking-budgeting/article/110863/for-uncle-sam-the-fed-prints-and-mints-money;_ylt=AtOo1ahiiojHy2.IDBIA_LO7YWsA;_ylu=X3oDMTFmajMxNXVpBHBvcwMzBHNlYwNleHBlcnRPcGluaW9uRHluYW1pYwRzbGsDNzBiaWxsaW9uc3Vy?mod=bb-budgeting  

"The most profitable bank in the United States of America isn't Jamie Dimon's JP Morgan Chase or the rejuvenated Bank of America. In fact, it doesn't have any ATMs, and it pays out almost all its earnings to you and your neighbors.

It's the Federal Reserve, which is expected to post another year of record profits in 2010.

In recent years, America's central bank has come under criticism — much of it justified. Under former Fed Chairman Alan Greenspan and his successor, Ben Bernanke, the Fed slept through the housing/subprime bubble, did a poor job of regulating banks and failed to forecast the deepest recession in 80 years.  Once the crisis hit, the Fed intervened in unprecedented and expensive ways that have weakened the dollar and punished savers with rock-bottom interest rates. Bernanke vastly increased the size of the Fed's balance sheet, which now stands at $2.3 trillion vs. about $800 billion before the crisis began.....The U.S. government's 2010 fiscal year closes on Thursday (fiscal years run from October to September). The books will close with the federal deficit at about $1.3 trillion. But without the Fed's earnings, which could approach $75 billion, the deficit picture would be noticeably worse."   

4 Comments – Post Your Own

#1) On September 29, 2010 at 8:56 PM, russiangambit (29.38) wrote:

And another brilliant businessman - the US government itself. I keep hearing laast couple of days how it is going to make 10 bil on Citi bailout anf may be even AIG will be able to 100bil+ back.

Here is the thing though, these institutions were stablized not only through direct injections of capital but also chnages in accounting standards, extra low interest rates, access to FED's 0% funds, and bailout of Fannie  and Freddie, which stablilized the housing house but is going to cost 500 bil at least. But, no this is not counted.

As well as FED is not counting the results of unintended consequences of low interest rates such as low rate of savings.

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#2) On September 29, 2010 at 9:00 PM, whereaminow (34.08) wrote:

I don't know whether to laugh or cry!  I'll just say that he's turned out to be Class A Political Entrepreneur and Robber Baron to shame all others.

David in Qatar

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#3) On October 01, 2010 at 5:43 PM, cbwang888 (25.86) wrote:

Whatever US Treasury invested can be easily guaranteed to make money as long as the biggest buyer is the federal reserve, who always overpays and yet no one can audit its balance sheet ...

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#4) On October 06, 2010 at 8:27 AM, mtf00l (42.75) wrote:

Hmmm...

The Fed is a privately held institution...

I'll bet Bernanke's bonus is bigger than Blankfein's!

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