Bernanke Failed Miserably- Chris Whalen Says

Yahoo Article

Unlike those who praise Bernanke for bringing the economy back from the brink of the abyss, Whalen says all he's done is "saved the dealer community" from themselves by overseeing a massive taxpayer-funded bailout of the financial community.

Bernanke "hasn't done anything for the real economy," the analyst says. "The only thing I see is inflation. For the average American the message they should take away from this year is this: Bernanke's policy has insured we'll see the purchasing power of Americans' savings dwindle."

I pretty much agree with what Whalen is saying. I find it kind of suprising to see non-support for this out so fast after Bernake got person of the year. Pretty much all Whalen says is that Bernake is just helping his friends and not the average citizens. Theres a small video on the left of the article and I thought that was a pretty nice segemtn to watch.

Bernanke helped an awful lot of bankers get rich after they created all those toxic assets. I wish I'd gotten a government bailout for being stupid like they did.

I agree with the article in general, too, except that I don't think Bernanke is in danger of not being reaffirmed. As far as the elite are concerned, he's doing a good job. For them, anyway. If it were up to the general population, he'd be doomed, but Congress is probably happy with his work.

I find it kind of suprising to see non-support for this out so fast after Bernake got person of the year.

Actually, I've seen a fair amount of criticism toward Bernanke, at least on sites like ATS, regarding his treatment of the bailouts and economic situation.

Bernanke is person of the year and Tiger Woods is an "athlete"
Somebody has a warped sense of humor up there.
Bernanke is Rapist of the year and Tiger is runnning a close second but for different reasons.
Amazing what money can do for a person, or a financial institution.
OUR MONEY, MIND YOU

I'm not here to defend the bankers. Far, far from it. But let's break things down. There is no question that the banks and their connected investment and insurance partners skirted, violated and played fast-and-loose with regulations to precipitate this crisis. They've admitted as much.

mea culpa

The majority of economists sincerely believe that the entire financial system was at-risk of collapse in the Fall of 2008. This sentment was not partisan, was not only held by the Bush administration and was not exclusively held within government. So there was, most likely, a real risk of that happening.

Many experts believe that Bernanke's actions averted that disaster. We can have a Google war here and post links to experts on both sides of that equation. But in the end, it did not happen. There is little doubt that we came exceedingly close.

What would have happened had the financial system collapsed? Well, for one we would have had the opportunity to overhaul that clearly dysfunctional system. But happens to everyone in the meantime? There would be little commerce. Food, energy, basics of life would dry-up in short order. Virtually all businesses would be forced to close. We would decsend into cultural mayhem. Many, many familes would suffer at a level never seen in this country.

So, I undestand Whalen's POV. I share much of it. But I also believe Bernanke did some very unpopular things at a time of crisis that very well may have saved us. Also, keep in mind, Person of the Year does not necessarily mean a happy-shiny Person of the Year. Only that the individual had massive influence.

Finally, I'd like to point out that Bernanke in no way 'made the bankers rich'. They were already far richer. He just prevented them from losing everything, taking their ball and going home. Did the bankers make out considering the alternative? Sure did. But the alternative was beyond consideration... in my view.

Originally posted by jtma508
Finally, I'd like to point out that Bernanke in no way 'made the bankers rich'. They were already far richer. He just prevented them from losing everything, taking their ball and going home. Did the bankers make out considering the alternative? Sure did. But the alternative was beyond consideration... in my view.

It's possible I may have misunderstood some of the situation, since I suck at economics, but I think there is a difference between the bank's money and the banker's money. The banks probably did lose a lot of money they had on the books due to toxic assets and so on, but the bankers themselves are doing just fine. Heck, there were a lot of bankers that still got millions in bonuses this year, even though their banks are failing under their so-called management.

Also, keep in mind, Person of the Year does not necessarily mean a happy-shiny Person of the Year. Only that the individual had massive influence.

I agree. In fact, I said it in another thread about Bernanke :p