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Paid Liars or World's Dumbest Duo?!?!



June 17, 2009 – Comments (8) | RELATED TICKERS: ID.DL , IO , TS

This is a nice follow-up to Sinchy's post from earlier today.

Zero Hedge picked up on this collection of quotes compiled by Austrian Filter. In it, Hank Paulson and Ben Bernanke spew one lie after the next. Either that, or, they have got to be the two biggest idiots (at least related to the economy/finance/etc.) to ever walk the face of the planet. The DOW price is inserted throughout to give some perspective as to what was happening in the markets. I don't know whether to laugh, cry, or seek vigilante justice. February 28, 2007 - Dow Jones @ 12,268

March 13th, 2007 – Henry Paulson: “the fallout in subprime mortgages is "going to be painful to some lenders, but it is largely contained."

March 28th, 2007 – Ben Bernanke: "At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained,"

March 30, 2007 - Dow Jones @ 12,354

April 20th, 2007 – Paulson: "I don't see (subprime mortgage market troubles) imposing a serious problem. I think it's going to be largely contained." , "All the signs I look at" show "the housing market is at or near the bottom,"

April 30, 2007 - Dow Jones @ 13,063

May 17th, 2007 – Bernanke: “While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.”

May 31, 2007 - Dow Jones @ 13,627

June 20th, 2007 – Bernanke: (the subprime fallout) ``will not affect the economy overall.''

July 12th, 2007 – Paulson: "This is far and away the strongest global economy I've seen in my business lifetime."

August 1st, 2007 – Paulson: "I see the underlying economy as being very healthy,"

October 15th, 2007 – Bernanke: "It is not the responsibility of the Federal Reserve - nor would it be appropriate - to protect lenders and investors from the consequences of their financial decisions."

December 31, 2007 - Dow Jones @ 13,265

January 31, 2008 - Dow Jones @ 12,650

February 14th, 2008 – Paulson: (the economy) "is fundamentally strong, diverse and resilient."

February 28th, 2008 – Paulson: "I'm seeing a series of ideas suggested involving major government intervention in the housing market, and these things are usually presented or sold as a way of helping homeowners stay in their homes. Then when you look at them more carefully what they really amount to is a bailout for financial institutions or Wall Street."

February 29th, 2008 – Bernanke: "I expect there will be some failures. I don't anticipate any serious problems of that sort among the large internationally active banks that make up a very substantial part of our banking system."

March 16th, 2008 – Paulson: "We've got strong financial institutions . . . Our markets are the envy of the world. They're resilient, they're...innovative, they're flexible. I think we move very quickly to address situations in this country, and, as I said, our financial institutions are strong."

March 18th, 2008 - Bear Stearns Bailout Announced

May 7, 2008 – Paulson: 'The worst is likely to be behind us,”

May 16th, 2008 – Paulson: "In my judgment, we are closer to the end of the market turmoil than the beginning," he said.

May 30, 2008 - Dow Jones @ 12,638

June 9th, 2008 – Bernanke: Despite a recent spike in the nation's unemployment rate, the danger that the economy has fallen into a "substantial downturn" appears to have waned,

July 16th, 2008 – Bernanke: (Freddie and Fannie) “…will make it through the storm”, "… in no danger of failing.","…adequately capitalized"

July 20th, 2008 – Paulson: "it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation."

July 31, 2008 - Dow Jones @ 11,378

August 10th, 2008 – Paulson: ``We have no plans to insert money into either of those two institutions.” (Fannie Mae and Freddie Mac)

September 8th, 2008 - Fannie and Freddie nationalized. The taxpayer is on the hook for an estimated 1 - 1.5 trillion dollars. Over 5 trillion is added to the nation’s balance sheet.

September 16th, 2008 - $85 Billion AIG Bailout “Loan”

September 19th, 2008 - $700 Billion Bailout Plan Announced

September 19th, 2008 – Paulson: "We're talking hundreds of billions of dollars - this needs to be big enough to make a real difference and get at the heart of the problem," he said. "This is the way we stabilize the system."

September 19th, 2008 - Bernanke: "most severe financial crisis" in the post-World War II era. Investment banks are seeing "tremendous runs on their cash," Bernanke said. "Without action, they will fail soon."

September 21st, 2008 – Paulson: "The credit markets are still very fragile right now and frozen", "We need to deal with this and deal with it quickly.", "The financial security of all Americans ... depends on our ability to restore our financial institutions to a sound footing."

September 23rd, 2008 – Paulson: "We must [enact a program quickly] in order to avoid a continuing series of financial institution failures and frozen credit markets that threaten American families' financial well-being, the viability of businesses, both small and large, and the very health of our economy,"

September 23rd, 2008 – Bernanke: "My interest is solely for the strength and recovery of the U.S. economy,"

October 31, 2008 - Dow Jones @ 9,337

March 31, 2009 - Dow Jones @ 7,609

Austrian Filter conlcudes correctly: "If Bernanke and Paulson were doctors, and our economy was the patient, they would be in jail for malpractice."

8 Comments – Post Your Own

#1) On June 17, 2009 at 11:02 PM, XMFSinchiruna (26.58) wrote:

Excellent post, JGus! Thanks!

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#2) On June 17, 2009 at 11:09 PM, JGus (28.13) wrote:

Thanks, TMFSinchiruna!

I meant to link to your post (which was great and I rec'd), but forgot :(

Problem solved :)

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#3) On June 17, 2009 at 11:49 PM, RookieQB (29.24) wrote:


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#4) On June 17, 2009 at 11:58 PM, binve (< 20) wrote:

JGus, Again my man, awesome post! In the "delusional, paid liars or both" choice, these guys probably each get a vote for "both" :) Thanks :)

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#5) On June 18, 2009 at 12:04 PM, SWOOPINGLOTUS (< 20) wrote:

Excellent post, the problem is 90% of the American population believes whatever our trusted government tells them to believe.


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#6) On June 18, 2009 at 4:02 PM, Evlampius (25.40) wrote:

sometime before bear collapsed they asked Cramer is it safe and he was yapping it's perfectly fine.... when they asked him  after the collapse why didn't he say it was going to die - he answered "Do you know what would have happened to the shares if Cramer told they are going bankrupt?"" 

To that point what did you expect the Fed Chairman and Treasury secretary to say - "We're all doomed" the economy is screwed and you should sell your house now while you still can??

Put yourself in their shoes and then call them idiots or liars...

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#7) On June 18, 2009 at 5:17 PM, XMFSinchiruna (26.58) wrote:


Put yourself in their shoes and then call them idiots or liars...

Justify the lies if you wish ... but it still makes them liars. Since investors paid the bulk of the price for their lies, I'm surprised to find a single investor willing to justify it. :( Follow the thought further ... what does that tell you when you have a system so frail that cabinet members and fed chairmen have to tell bold-fasced lies to the American people to keep their con game going.

If Cramer indeed admitted to lying about Bear Stearns to keep the stock from falling, then I'm incredulous that anyone in their right mind would still be watching the guy. Do people place zero value on trust?

For all we've learned over the past year, I'm still amazed that so many people seem to adhere to pre-collapse financial paradigms. Ask yourselves if you've experienced a paradigm shift since the crisis began. If you have not, then I recommend giving the matter some serious thought.

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#8) On June 18, 2009 at 5:36 PM, Evlampius (25.40) wrote:

I do not disagree - that does make them liars, but I am just trying to put things into perspective here. You can say the same about every politician in the world, in fact to get into politics you have to lie your way through...

The very nature of a human being however is based on trust and beliefs in optimism and hope.  I just think tha there is no other way of the government to present unsound data to keep people calm and hopeful and that I do understand why they do that.

That being said, If you are a dilligent investors then you do understand the whole meaning behind what is being said and you would still make the right decision investing your money, regardless being lied to by the government.

That is what i meant.

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