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Bernanke Lies To Congress

6:00 pm in Uncategorized by DSWright

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Another chapter of Banksters and the “Regulators” That Love Them.

Yesterday Federal Reserve Chairman Bernanke testified before the House and Senate and, as is customary, avoided giving direct answers to direct questions. But while it is also customary for Bernanke to make questionable assertions (like there was no Housing Bubble) he went the extra mile yesterday in his dishonesty.

From Reuters:

Bernanke said the very notion of a monetary policy audit was misleading.

“The term ‘audit the Fed’ is deceptive. The public thinks that auditing means checking the books, looking at the financial statements, making sure that you’re not doing special deals, and that kind of thing. All of those things are (already) completely open,” he said.

That is a complete lie.

I am sure many of the news organizations that had to sue the Federal Reserve to get information on special deals would be quite confused by that statement.

So would Senator Sanders, Congressman Paul, fmr. Congressman Grayson and all the legislators that had to pass a bill before Bernanke would open the books.

To recap, if what Bernanke asserted about Fed special deals being “completely open” was true, why the lawsuits? Why the bi-partisan legislation forcing an audit?

From Bloomberg (after winning the lawsuit):

The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates.

Oh that “anyone” that included Congress.

Lawmakers knew none of this…

Had lawmakers known, it “could have changed the whole approach to reform legislation,” says Ted Kaufman, a former Democratic Senator from Delaware who, with Brown, introduced the bill to limit bank size…

“When you see the dollars the banks got, it’s hard to make the case these were successful institutions,” says Sherrod Brown, a Democratic Senator from Ohio who in 2010 introduced an unsuccessful bill to limit bank size. “This is an issue that can unite the Tea Party and Occupy Wall Street. There are lawmakers in both parties who would change their votes now.”

The Left and the Right clearly do not agree on how to reform monetary policy but they can agree on the facts – and the fact is, as Mr. Bernanke well knows, the Federal Reserve does not have an open process let alone a “completely open” process as to how it operates and to whom it gives preferential treatment.

Luckily for Bernanke, he gives those secret loans to the people that buy Congress, otherwise his lying might get him into trouble.

ON SECOND THOUGHT: Fed Chair Bernanke Now OPPOSES Fraudclosure

4:39 pm in Uncategorized by DSWright

Federal Reserve Chairman Ben Bernanke – aka the man who said everything was fine and will live in infamy as a Wall Street puppet who funneled cash to the 1% and their wives (facts only know due to lawsuits by the media) – has now reversed his position on foreclosures as the solution to America’s housing crisis. Yes, you read that correctly, it only took 5 years of total miserable failure for him to realize something obvious to anyone not hoping to work for Wall Street after their “public service

From HuffPo:

More than four years into the housing crisis, and after millions of Americans have lost their homes, Federal Reserve Chairman Ben Bernanke is finally taking a stand.

Bernanke sent a Federal Reserve paper to the leaders of the House of Representatives’ Committee on Financial Services arguing that relying heavily on foreclosures to deal with mortgage borrowers that can’t meet their obligations is “costly and inefficient” for the housing market because they can lead to deteriorating homes and weigh on the property values in the surrounding community.

… he just realized that? Seriously?

Instead, the paper encourages lenders to “aggressively” pursue loan modifications and for servicers to be given more incentives to seek alternatives to foreclosure.

Wow. Does meat puppet Bernanke think families aren’t “aggressively” trying to not get thrown out on the street and lose the most valuable asset most working and middle class people will ever have? Seriously?


Bernanke’s Fun Scenario


“Hey honey we are about to lose our home and a better future for our children as we try and live out of a motel until the credit cards run out”

“Wait dear, have you considered trying to get a loan modification so we can stay in our home and avoid poverty?”

“Yes, the bank told me no.”

“Oh dear…did you ask them to aggressively try?

“Ah shucks honey. You’re right! I forgot to ask them to be aggressive! That will make all the difference in the world!”

“Everything is going to be OK. Oh America is a dreammmmmmmmm”

Somehow I don’t think it’s going to work.

Foreclosures “can result in ‘deadweight losses,’ or costs that do not benefit anyone, including the neglect and deterioration of properties that often sit vacant for months (or even years) and the associated negative effects on neighborhoods,” the paper said. “These deadweight losses compound the losses that households and creditors already bear and can result in further downward pressure on house prices.

Anyone? Try again.

There’s a reason fraudclosure is occurring and why the banks want a 50 state settlement and correspondingly why the Attorney Generals’ of New York and California dumped the scheme.

 

The Banksters oversold the paper.

 

Yes, you also read that correctly. Wall Street sold mortgages more than once – also called fraud. This is why they won’t produce authentic documentation, they shredded it to avoid fraud charges.

So not only are people being foreclosed on without documentation, if any of that documentation still exists it will show the mortgage has been collateralized multiple times and then sold multiple times. Because why sell a financial security once when you can sell it twice for twice the fee? Or even more than twice.

And who is helping coverup this crime of the century by flooding the market with cash and buying every crap mortgage he can? Federal Reserve Chair Ben Bernanke.

Thanks but no thanks Bernanke. Stuff your advice. Time to go to court and find out what’s really going on.