Bernanke Claims That The Fed Has Averted A Second Great Depression By Bailing Out The Too Big To Fail Banks

March 28th, 2012

FAKE NEWS for the Zionist agenda

The Economic Collapse
March 28, 2012

Federal Reserve Chairman Ben Bernanke claims that the Federal Reserve averted a second Great Depression by bailing out the big Wall Street banks during the last financial crisis, and he says that if a similar financial crisis comes along that the correct “policy response” will be to do the exact same thing again. This was the theme of the lecture that Bernanke delivered to students at George Washington University on Tuesday. In previous lectures Bernanke has defended the existence of the Fed and detailed the history of Fed activities, but on Tuesday he addressed things that have happened since he has been at the helm of the Fed. And according to Bernanke, he has been doing a great job. Bernanke told the students that the “threat of a second Great Depression was very real” and that the Federal Reserve did exactly what needed to be done to fix the financial system. Unfortunately, the truth is that all Bernanke did was kick the can a bit farther down the road. You can’t fix a debt problem with more debt, and the debt bubble we are living in today is far larger than it was in 2008. Will Bernanke still be trying to portray himself as a hero when this house of cards finally falls apart?

During his lecture to the students on Tuesday, Bernanke stated the following….

“I think the view is increasingly gaining acceptance that without the forceful policy response that stabilized the financial system in 2008 and early 2009, we could have had a much worse outcome in the economy.”

So what did that “forceful policy response” entail?

Well, on slide 24 of his presentation to the students Bernanke tells us….

• On October 10, 2008, G‐7 countries agreed to
work together to stabilize the global financial
system. They agreed to
– prevent the failure of systemically important
financial institutions
– ensure financial institutions’ access to funding and
capital
– restore depositor confidence
– work to normalize credit markets

Please note that not all financial institutions got bailed out.

In fact, hundreds of small and mid-size U.S. banks failed during the financial crisis.

It was only the “systemically important financial institutions” that got bailed out.

So who decided which financial institutions were important enough to be bailed out?

The Federal Reserve made those decisions. There were no Congressional votes and no input from the public. The Federal Reserve determined who the winners and the losers would be in secret and without any public debate.

Sure sounds “democratic”, eh?

But we are told to trust them because they are supposedly the experts.

So once the Federal Reserve bailed out the “too big to fail” banks, what was the outcome?

On page 25 of his presentation to the students Bernanke claimed that the bailouts successfully prevented the global financial system from collapsing….

• The international policy response averted the collapse of the global financial system.

But it wasn’t just big Wall Street banks that got bailed out. Bernanke says that AIG was also bailed out because the insurance company was deemed to be too “interconnected with many other parts of the global financial system” to be allowed to fail….

Because AIG was interconnected with many other parts of the global financial system, its failure would have had a massive effect on other financial firms and markets.

Once again, we see that it is the Federal Reserve who picks the winners and the losers.

AIG got bailed out and was then able to pay 100 cents on the dollar of what it owed to Goldman Sachs.

That sure worked out well for Goldman Sachs.

In all, the Federal Reserve issued a grand total of more than 16 trillion dollarsin secret loans during the financial crisis.

The big Wall Street banks got showered with cash while hundreds of smaller banks were allowed to die like dogs.

The fact that the Fed greatly favors the big Wall Street banks has allowed them to grow massively in size and in power.

Back in 1970, the 5 biggest U.S. banks held 17 percent of all U.S. banking industry assets.

Today, the 5 biggest U.S. banks hold 52 percent of all U.S. banking industry assets.

The “too big to fail” banks just keep getting bigger and bigger and bigger.

Yet during his presentation to the students, Bernanke tried to talk out of both sides of his mouth by claiming that it is not a good thing for some banks to be “too big to fail”….

“But clearly, it is something fundamentally wrong with a system in which some companies are ‘too big to fail.’”

So who is to blame for them being so big?

Well, the Federal Reserve is probably the biggest culprit.

A d v e r t i s e m e n t

Thanks Bernanke.

The big Wall Street banks are bigger than ever and they are also more unstable than ever.

According to the Comptroller of the Currency, the biggest U.S. banks have exposure to derivatives that is absolutely mind blowing. Just check out these numbers which have just been released….

JPMorgan Chase – $70.1 Trillion

Citibank – $52.1 Trillion

Bank of America – $50.1 Trillion

Goldman Sachs – $44.2 Trillion

So what is going to happen when that bubble pops?

Is Bernanke going to zap tens of trillions of dollars into existence to bail out that gigantic mess?

Meanwhile, the debt bubble that we are all living in just keeps exploding in size.

Total student loan debt in the United States is over 1 trillion dollars at this point. Consumer debt is rising. Millions of mortgages are past due.

The American people are not in better financial condition than they were during the last financial crisis. In fact, they are significantly worse off.

All over America, state and local governments are also drowning in debt. In fact, there have been several very notable municipal bankruptcies lately.

And the U.S. government is racking up debt at a pace that is almost unimaginable.

When the last financial crisis began, the U.S. national debt was about 10 trillion dollars.

Today, it has risen to 15.5 trillion dollars.

So Bernanke did not fix anything.

The best that can be said is that he kicked the can down the road a little bit and made our long-term financial problems a lot worse at the same time.

Bernanke can create money out of thin air and loan it to his friends all he wants, but he is not going to be able to prevent this house of cards from crashing down indefinitely.

So grab a bucket of popcorn and get ready. The next few years are going to be fascinating to watch.

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7 Responses to “Bernanke Claims That The Fed Has Averted A Second Great Depression By Bailing Out The Too Big To Fail Banks”

What ol’ whirlygig” Bernanke left out was the words-SO FAR!

Glen Reply:
March 28th, 2012 at 5:06 am

Or replaced “Delayed” or “Postponed” in something written by an educated person.

What a smart Glove PUPPET he is.
Not Averted, Postponed.
The question is how long and how many times can you keep postponing the Inevitable.
It’s like people, you can keep taking pills to stay alive longer, but it’s inevitable that one day your going to die, you can’t avoid it. And just like in Real Life, taking Pills to stay alive means your quality of life decreases.
The dollar value of the debt is irrelevant, once you can’t pay… a few trillion more makes no difference.

Amerika is at the point where they just lost their job and are paying one credit card off with the next card.

Then one day …… Screw it, apply for EVERY CARD and MAX EM OUT.

The next step is ALWAYS DEFAULT.
Bernanke is trying so hard to prove his existence and his position as a fast draw printer. When the greenbacks are flown to foreign countries the ink could possibly still be wet, so Im sure there is always extra printed up before its stacked on the pallets and flown out of the country.
Actually total U.S. debt is $15.6. We seem to be on course to put out another $1.5 trillion deficit for the year (it’s an election year too).

If we do that for only five more years we will be just like Greece at 160% of GDP. They are bankrupt according to Fitch.

Bankruptcy means very high unemployment, salary cuts, tax increases, much more offshoring and outsourcing of good jobs, and the destruction of America.

I see housing prices going down more, mass student loan defaults, Social Security and medicare benefit cuts, pension plan bankruptcies, rampant crime, basically, The Great Depression 2.
perfect example of a totaly unamerican dogshit shit moneychanger scumfuck spending there own worthless dogshit money and applying the real cost on americans ….it aint working anymore mr. antiamerican moneychanger scumfuck ….you ass holes think you can make anything real in your comic book newspapers and cartoons of reality in your MSM infomercials ….