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TMFEditorsDesk (< 20)

News Flash: Bernanke Feared a Second Great Depression (and other events from a slow news day)

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July 27, 2009 – Comments (4) | RELATED TICKERS: VZ

Bernanke refuses to buy a home in a Hooverville...

Why are headlines screaming that "Bernanke feared a second Great Depression?" (that one from the WSJ) Um, yeah, I thought that was a given from his monetary policy and his previous life as a Great Depression scholar.

I get it that the headlines are based on this weekend's quote:  "I was not going to be the Federal Reserve chairman who presided over the second Great Depression." Just saying.

...but others seem ready to...new home sales were up 11% in June...biggest jump in 8 years

It's extremely hard to interpret month-to-month numbers, but some are seeing this as another green shoot.  Here's the first paragraph of the Bloomberg article:

Purchases of new homes in the U.S. climbed 11 percent in June, the biggest gain in eight years, underscoring evidence that the deepest housing slump since the Great Depression is starting to stabilize.

Verizon announces 8,000 job cuts and lower earnings (missed estimates)

Shares are down 2-3% as I write this. We'll have more in an article later today.

Let's do what everyone else in the media does on a slow news day

The latest about Jon, Kate, and the Kate sequel...oooh!

-Anand

 

4 Comments – Post Your Own

#1) On July 27, 2009 at 12:52 PM, leohaas (31.56) wrote:

Needless to say that Bernanke is critisized heavily for his role in this down turn. His defense is that if he had not handled the way he handled, we would have another Great Depression right now. One need not agree with him to understand his reasoning.

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#2) On July 27, 2009 at 7:36 PM, TMFEditorsDesk (< 20) wrote:

Yup, it's always very hard to congratulate or criticize based on a counterfactual.

-Anand

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#3) On July 27, 2009 at 7:45 PM, starbucks4ever (97.24) wrote:

Yes, quantitative easing  is the right thing to do because QE is the best way of dealing with problems that don't arise under any other monetary policy :)

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#4) On July 28, 2009 at 10:52 AM, TMFRhino (98.16) wrote:

As I mentioned in another blog post, consider me skeptical on the 11% jump in new home sales since the margin of error was a gigantic 13.2%.

I'll wait for a couple more months of data before I start pouring shots of Patron down my throat while prancing around in a Dow 100,000 t-shirt.

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