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Senator Bunning to Bernanke "You are the definition of a moral hazard. Your Fed has become the Creature From Jekyll Island"

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December 04, 2009 – Comments (13) | RELATED TICKERS: GS , JPM , MS

Great post and testimony by Mish Shedlock   Senator Bunning to Bernanke "You are the definition of a moral hazard. Your Fed has become the Creature From Jekyll Island"

Senator Jim Bunning grill Ben Bernanke over the Fed's miserable performance under Bernanke.

Here is a partial transcript but I recommend playing the 13 minute video in entirety.

Alan Greenspan refused to look for bubbles or to do anything other than create them. Likewise it is clear from your statements over the last four years that you failed to spot the housing bubble despite many warnings.

Under your watch every one of the major banks failed or would have failed had you not bailed them out.

After taking over the Fed you did not seen any need for more substantial regulation of derivatives until it was clear that they were headed into the financial meltdown thanks in part to those products.

The Greenspan policy on transparency was to talk a lot, use plenty of numbers, but say nothing. You promised congress more transparency when you came to the job. You promised more transparency when you came begging for TARP. To be fair you have published more information than before but those efforts are inadequate and you still refuse to provide details on the Fed's bailout last year on all the toxic waste you have bought.

Chairman Greenspan sold the Fed's independence to Wall Street on the so called "Greenspan PUT". Whenever Wall Street needed a boost, Alan was there. But you went even farther than that when you bowed to the political pressure of the Bush and Obama Administrations, and turned the Fed into an arm of the Treasury.

Under your watch the "Bernanke PUT" became a bailout for all large financial institutions, including many foreign banks.

And you put the printing presses into overdrive to fund the government's spending and hand out cheap money to your masters on Wall Street.

In short, you are the definition of a moral hazard.

You are repeating the same mistakes as Japan in the 1990's on a much larger scale while sowing the seeds for the next bubble.

The AIG bailout alone is reason enough to send you back to Princeton.

I will do everything I can to stop your nomination and drag out this process as long as I can. We must put an end to your and the Fed's failure and there is no better time than now.

Your Fed has become the creature from Jekyll Island.

Visit msnbc.com for breaking news, world news, and news about the economy

 

FYSA - a reposted video on Helo Ben

and the author discusses the Creature from Jekyll Island 1 of 12

13 Comments – Post Your Own

#1) On December 04, 2009 at 8:25 AM, XMFSinchiruna (27.52) wrote:

Abit, see my post here:

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=303636&t=01006124249416869148

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#2) On December 04, 2009 at 8:28 AM, abitare (94.81) wrote:

TMFSinchiruna,

Good post. Now 40 RECs. Sorry for thte repost....

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#3) On December 04, 2009 at 8:42 AM, tkell31 (28.47) wrote:

What irony, a crooked politician talking abour morals.  I'm mildly surprised a bolt of lighting didn't strike him mid-sentence.  I assume Bunning was too stupid to see it coming which makes me wonder wtf he is doing in the Senate.

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#4) On December 04, 2009 at 8:45 AM, dudemonkey (37.83) wrote:

I'm glad you posted this, abitare, so that I can rec it twice.

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#5) On December 04, 2009 at 8:46 AM, JeanDavid (84.19) wrote:

What is anyone doing in the Senate? That is where they put them when they are unable to do anything else.

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#6) On December 04, 2009 at 9:00 AM, DaretothREdux (41.72) wrote:

What is anyone doing in the Senate? That is where they put them when they are unable to do anything else.

You're talking about a guy who pitched a perfect game. The single most difficult feat in all sports.

Dare

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#7) On December 04, 2009 at 9:52 AM, starbucks4ever (98.95) wrote:

+1

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#8) On December 04, 2009 at 1:05 PM, FleaBagger (28.78) wrote:

Is it a buying opportunity for SWHC today, or have you moved on?

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#9) On December 04, 2009 at 11:17 PM, lquadland10 (< 20) wrote:

Because you need to know how much lying they are doing to make your stock picks.

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#10) On December 05, 2009 at 11:15 PM, abitare (94.81) wrote:

FleaBagger,

I will be a long term holder of SWHC although I sold most of my shares at $5+. I am looking to get back in now.

I think ammo is currency, a holder of wealth and a medium of exchange if the dollar collapses. SWHC is one of the few publicly traded gun makers that make ammo. Report this comment
#11) On December 06, 2009 at 2:57 AM, nthought (< 20) wrote:

Not that it vindicates Greenspan/Bernanke, but Senators such as Jim Bunning worked tirelessly to push the deregulatory policies that have wrecked this economy.  I can do without the demogoguery, but thanks for posting this anyway.

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#12) On December 07, 2009 at 4:29 PM, FleaBagger (28.78) wrote:

Thanks, Abitare! I sold a couple SWHC puts.

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#13) On December 12, 2009 at 12:52 PM, gnulaw (53.41) wrote:

Did you know this was being podcast as you were posting this blog?

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