Which Fed Governor is Lying to Us????? Chairman or Vice Chairman???
April 17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the collapse of U.S. lending will probably cause “long-lasting” damage to home prices, household wealth and borrowers’ credit scores.
April 18 (Bloomberg) -- Federal Reserve Vice Chairman Donald Kohn said that while the central bank’s emergency lending programs aren’t creating a significant risk for U.S. taxpayers, they may be channeling credit to some lenders more than others.
And then Fed Gov. Kohn states the following:
“We are not trying to favor some sectors over others,” Kohn said in a speech today in Nashville. Still, “we have recognized that the resulting effects can be uneven” across credit markets and “this outcome is not a comfortable one for the central bank.”
Can someone explain what the heck he means????
Alstrynomic Clarification: We are not trying to favor the banking sector, but we know what we are doing is favoring the banking sector and we are worried what Americans might do to us once they figure it out.
Now it appears the two top Fed Governors can't keep a consistent story. Which is it....long lasting damage as the Chairman says or no significant risk as the Vice Chairman says???
As the sheep getting slaughtered.................
Any thoughts whether unemployment will be around 17% when numbers come out in a few weeks??? At that point, just 13% away from 30% unemployment.