Markets await Bernanke as centbankers gather

Guardian UK ^ | Thursday August 21 2008 | Alister Bull

[LomanBill]

JACKSON HOLE, Wyo., Aug 21 (Reuters) - Federal Reserve Chairman Ben Bernanke tackles financial stability in a key speech on Friday but economists doubt he will provide solid clues about future policy action to calm the credit crunch.
[snip]
This time last year, Bernanke told the conference the Fed would take steps to shield the economy from the U.S. housing collapse, but would not bail out investors. Since then, the Fed has slashed interest rates and lined up billions of dollars in emergency credit to prevent markets from seizing up over mountainous home loan losses. But conditions remain strained. "I think he will bend over backward not to give markets much to go on. Just ask yourself what has happened since the last Federal Open Market Committee meeting," said Bob Eisenbeis, former head of research at the Atlanta Fed.
[snip]
However, with consumer inflation at a 17-year high last month, Bernanke must reassure markets of his commitment to price stability, some believe. "He's going to have to talk about inflation," said Columbia University economist Charles Calomiris. "He's going to have let people understand what his logic is on the trade-offs between inflation and the risks of recession."
[snip]
"The Fed's done yeoman's work, but there are limits to what the Fed can deliver," McCulley said.
[snip]

[LomanBill]

"The Fed's done yeoman's work"

 

Jupiter Island, Jekyll Island,

 

 

Gilligan's Island... 

 

It's tough to tell them apart these days.

 

 

So now that we know where Gilligan and the Crew of the Fed are this weekend, can anybody tell me where LEO is?  'cause he seems to be MIA.

 

 

Anybody EVER planing on taking punitive action against those who engaged in deliberate, massive, FRAUD - and shipwrecked us on Gilligan's Island in the first place?

 

 

Got FICO?

[vietvet67]

[LomanBill]

They should be pushing NyLons out the door of that helicopter instead of dollars; for a hard landing in Federal Prison.

[chile]

I have until the end of October to lock in the interest rate on a new home I’m buying. I would love to know if it’s going to go up or down before then. Any guesses?

[LomanBill]

>>Any guesses?

 

It depends on how Gilligan answers this:

 

"He's going to have to talk about inflation," said Columbia University economist Charles Calomiris. "He's going to have let people understand what his logic is on the trade-offs between inflation and the risks of recession."

[ovrtaxt]

Anybody EVER planing on taking punitive action against those who engaged in deliberate, massive, FRAUD - and shipwrecked us on Gilligan's Island in the first place?

You mean the group of thieves-er-bankers who started all this crap in 1913?

[ovrtaxt]

You want guesses? Here’s a guess.

I’m guessing if you had the cash to pay for it outright, you’d be better off than wondering about the interest rate. ;^)

[LomanBill]

[You mean the group of thieves-er-bankers who started all this crap in 1913?]

 

If some of the folks at Argent Mortage, who typed in fabricated FICO scores, landed behind bars; that would at least be a demonstration of good faith. 

 

But they haven't.

 

Nobody is addressing the underlying cause of the "credit crisis" - and that is the undermining of confidence in the system by entities that gamed the system and engaged in fraud.   Confidence can not be restored until the fraudulent perpetrators are brought to justice.

 

No Justice == No Confidence

 

It's pretty simple.

[ovrtaxt]

Yes. Familiar with Argent. People who violate the law need to be dealt with harshly.

But correct me if I’m wrong— isn’t all this a result of profound changes in government policy to “make home ownership more accessible to every American”? The American dream and all that.

Most of this mortgage stuff is a result of the industry (including speculators) taking the new rules and running with them, if I understand it correctly.

[Sarajevo]

But correct me if I’m wrong— isn’t all this a result of profound changes in government policy to “make home ownership more accessible to every American”?

You're not wrong. It was a Clintoon thing.........

[ovrtaxt]

Really? I heard it was a Bush thing, started around 02. I could be wrong, but that’s what I heard.

[LomanBill]

>>the new rules

 

What new rules specifically?  

 

Take look at the history of Roland Arnall and his various operations.

 

He was the Godfather of Subprime,  owner of Democrats and Republicans alike.

 

 

 

 

 

[M. Espinola]

More of the Fed’s smoke & mirrors.

[ovrtaxt]

20 milion in bribes! -er lobbying efforts! Sure hope those ‘incentives’ to our politicians was worth it, because we’re paying for it now.

As for changes to the mortgage qualifications, I know nothing specific, just general hearsay. I haven’t researched that subject at all.

I do know that at some point several years ago, people started getting real estate loans who had no business getting anything more than a charitable handout on the street corner.

[CRBDeuce]

...economists doubt he will provide solid clues about future policy action to calm the credit crunch...

In fact, any liberal arts trained economist doesn't believe Bernanke will 'display any intelligence' at all! So ANYthing that comes out of the speech will be 'unexpected'!!! oh, and yes, good for the market! Treasuries, equities, etc will benefit today! The Brits are especially entertaining in their comments, since they've already defined the 'recession' as the American Disease, even tho' Europe is the first wave of any recession due to its archaic economic policies!

[CRBDeuce]

Beginning with the Confidence-man-in-chief who started it all, Bill Clinton (along with his buddy Robert E. Rubin),

[LomanBill]

[I do know that at some point several years ago, people started getting real estate loans who had no business getting anything more than a charitable handout on the street corner.]

 

 

I think its symptomatic of the general moral decline in our society.     I was on a jury a few years ago and one of my fellow jurors was a Physics profesor at U.C. Irvine.  During the course of the trial we had lunch together and he expressed his utter frustration with the depth, degree, and sophistication of the cheating he found goinging on among the students in his courses.

 

He said they their behavior was complelely rationalized; they said things like "everybody does it" and "that's what you have to do to survive".   Astounding!

 

Unsurprisingly, that's the attitude I witnessed among the young associates at Argent/Ameriquest.

 

This was my desk at Argent:

 

 

 

 

 

Another photo, taken by myself in the 9th floor I.S. lunchroom at the Ameriquest Corporate HQ in Orange.

 

Natural Born Predators

 

 

They're realy proud of their rainbow blimp.  To me, it represents the socialist wealth-redistribution facade by which many within Ameriquest tried to rationalize their behavior.

 

 

This one was taken by a Friend - another Argent/Ameriquest Associate and fellow member of the Empower Development team.  In fact, he was a team leader.   Like me, he managed to swim away from the Ameriquest Pirate Dinghy.

 

 

Proud Pirates of the American Dream.

 

 

 

Some of the folks that E!mpowered Enron, also E!mpowered Argent/Ameriquest.

 

 

 

As for me: 

 

"Bill was the 'go to' guy as Developers come. Always reliable not only in his time, but in his work product. Bill worked on several major initiatives that I had leadership over at ACC Capital Holdings (aka: Argent Mortgage and now Citi Residential). Key projects were Appraisal Automation, new Product line launches. I would say that Bill often went above and beyond my expectations by working late nights and weekends not only to get to the job done or meet deadlines, but to free himself up to do more and be ahead of the game! Bill is a man of integrity and cares about a job well done, he is always willing to lend a hand on issues - even from previous projects. Along with Bill's technical expertise, he can articulate the technology that he is building very well - which is a plus for clients! As I've often specifically requested Bill for my projects in the past, I would gladly recommend him for any opportunity."

Despite the fact that the river of systemic corruption within the company ran so deep and wide that you needed wings to stay above it,  not all the folks at Argent were corrupted.  Argent did have superficial PR campaigns, targeted at Employees, such as "Do the Right thing"; but I never got the impression  they were realy sincere about that - and it was easy to burry your head in the sand and pretend not to see what was going on, as so many did.

 

 

There were a number of us at Argent who were trying to change things - by plugging loopholes in the system that were being exploited; and we were having success - but that effort ended when Argent got merged back into Ameriquest, and the Ameriquest Pirates took over the Argent Ship and rode it into Citigroup.

 

Sometimes the truth isn't pleasant... but still, it is what it is.  Moral Dilemas are like that.

 

 

So Raise your children well, America.  How our children deal with the moral dilemas they face in life is a reflection of our parenting.

 

 

I thank God for my parents every day...

 

 

 

...and also for the Boy Scouts of America

God Bless 'em and Keep 'em.

[ovrtaxt]

Quite a story. Thanks for sharing.

The herd mentality is an amazing phenomenon.