Ben Bernanke – 60 Minutes Interview

Okay,

This video was recorded around 3 years ago It is the Federal Reserve Chairman – Ben Bernanke – being Interviewed by CBS news for their 60 minutes program.

It looks like the original recording has been “snipped” – It was 60 mins! and they’ve removed the Fed’s chairmans comments about Deflation being a threat – If anyone has the original 60 mins Interview in full and would like to share please get in touch (thehovistrader@gmail.com) or provide a link If you know where to locate on the web – thanks.

Watch the video and then ask the following questions to see what’s transpired since the Interview, remember, these people have a lot of power and think they know how to control the economy!

  1. Has the action of 2008 (QE) worked and averted a further recession – not here in the UK
  2. 2 mins in he says “It’s hard to forecast these things” – Yet they are happy enough to tell you things will get better and they know what they’re doing!  Contradiction I think
  3. Averted a Depression? – This bear market ain’t over, the only reason he’s given the Interview is due to the fact that the markets have risen (as expected) from March 2009
  4. Often he mentions recovery, he’s referring to the stock markets – so now he’s linking the stock markets to economic recovery!  What’s the point of GDP figures and the like that are months out of date when published, If all you have to do is look at the markets for their opinion! – It’s common knowledge amongst stock market traders and professional Investors that the stock market is a leading Indicator of the economy
  5. The Fed was CREATED in 1913, to AVERT financial panics – this was a REACTION to the 1907 PANIC – obviously the Fed stopped the 1929, 1966, 1987 & 2007 panics seen as it was created to stop such things from happening!
  6. Lehmans Bros – “We cannot put capital into, all we can do is make LOANS against collateral” – Basically ANY Central Bank when rescuing or Issuing QE need you to back the assets and the preferred option is via highly graded Triple (AAA) A treasuries which have very little chance of default – All they are doing is LOANING the money after creating it out of thing AIR.
  7. AIG was rescued because it’s assets included Top quality graded treasuries and gilts – not junk corporate bond debt
  8. He refers to congress passing a bill to put capital into the banks in October 2008 – the worst was over by then – so much for preventing it in the 1st place!
  9. To understand the Fed please refer to a previous blog post I’ve made on this which gives you the option to obtain a free report detailing The Fed – applies to any free Central Bank in existence too
  10. They’ve had to do more bailouts because they don’t KNOW how much exactly is needed to solve the problem, because they’re REACTING to events!  The exact same is happening to countries in the EU zone right now – Reactionary action
  11. I agree with his Fire scenario, but the preventative measures happen after the fact and fail to work = no point!
  12. Stress-Tests!   There NOT going to fail! He’s promised that
  13. right at the end of part 1 – What keeps you up at night? – Not one mention of Europe!
  14. They just don’t have a clue

I can only access Part 1 of the interview, If you want to see part 2 head to CBS website via this link

Part 2 – they’ve cut the part where the Fed chairman talks about Deflation being a major threat – not sure why?

Enjoy

The Hovis Trader

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