The Ben bashers think only of themselves
4 people took me aside to tell me Bernanke is wrecking the country.
One after another, four in a row.
Four people took me aside at a fundraiser I attended this week to tell me that Federal Reserve Chairman Ben Bernanke is wrecking this country. In three of the cases they used the same or similar language and the fourth was all expletive deleted.
All four could only think about the hyperinflation that he will unleash when things get better.
In each case I tried to explain that Bernanke does not want to be the Fed chief who presides over another recession not unlike the recession that took place within the confines of the Great Depression in 1937.
Each person listened patiently to that and then dismissed it as something that's irrelevant.
When I then offered defenses about employment and the need for this great country to have lower unemployment, there was little sympathy. When I mentioned that inflation may be a little harder to have with an immigration bill coming through one said "they already have jobs, it won't change a thing." Wage inflation is what each said he fears.
Only one gentleman really felt like discussing the merits of the arguments. He wanted to know how the Dow Jones Industrial Average ($INDU) and S&P 500 ($INX) could be hitting all-time highs with the U.S. debt at $17 trillion. I said that first, there is no justice when it comes to the stock market. They have nothing to do with each other.
He seemed mystified.
Then I walked through the Johnson & Johnson (JNJ) analysis that I have been using in these settings. The AAA–rated balance sheet with consistent earnings that makes products that are loved in the growth portion of the emerging markets and a good dividend to boot.
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He was not placated.
I said "how about gold?" He said "it's going down." I said so what. If he really believed that Bernanke was going to wreck the country then the only real course of action would be to buy gold coins -- not even bullion, too unwieldy -- and put them in the vaults of foreign banks in countries that don't have debt problems.
His eyes rolled over.
I said why is that so bad? If you really think the world is going to come to an end, am I not offering a substantive solution to the issue?
Nope, he said, it just doesn't help at all.
But all four naysayers did make me think. They made me think they only watch and read the same people over and over again, the ones who fret about Bernanke and NOT about the Republic. The ones who think that all that matters is preserving their wealth and they hear it is threatened by Bernanke.
To me, it is threatened by a president and a Congress that aren't serious about cutting spending or genuinely believes that tax increases will mean anything without Medicare reform.
They are the ones putting us at risk. That's who people should be grousing about. Ben? All he's doing is trying to keep us afloat in a world where everyone else is sinking.
What's so darned bad about that?
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long JNJ.
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you're right that it is a combination of issues. Ben is one. printing money cannot end well.
the government spending money endlessly can not end well.
people (government, public unions) who only believe a "cut" is only a drop in expected increases force us down this horrible trail. again, this cannot end well.
Contrary to your statement, Jim, most people that gripe about Bernanke do so because they love the Republic, and they can't stand to see it set up for failure.
Bernanke was asked to clean up a wreck that had already occurred.
I fault him for a dismal effort in facing that task.
The prospect of another wreck threatens when the Bernanke "smoke and mirrors" efforts recede.
He applies very expensive bandaids to issues that require surgery.
Where in general is the prosperity?
The economics of Bernanke and Obama do not seem to be working at all.
"Each person listened patiently to that and then dismissed it as something that's irrelevant."
The only way these four people could have exhibited more intelligence would have been to walk the other way when they saw you Bobo..... Maybe you were standing on their feet with those big clown shoes.
"Four people took me aside at a fundraiser I attended this week to tell me that Federal Reserve Chairman Ben Bernanke is wrecking this country."
Nice that you attend such diverse gatherings. There were 4 people with commonsense in attendance and the rest were psychopaths like you. Read my spell-checked American: BEN BERNANKE HAS WRECKED THIS COUNTRY.
Cramer do you understand so little about things.
1) Domestic Inflation is caused by the Federal Reserve having a discount rate over 4 percent. Contrary to the normal wisdom that says low rates cause inflation and high rates fight inflation. Those rumours were started by the Federal Reservea) the Chinese government understands the deficit and inflation scheme the super rich are pulling in the USA. They have been hurt by the dollar dropping in value. So they are doing something about it. They are now trading in yuan and not the dollar. This means everybody soon will dump dollars for yuan. The dollar will no longer be excepted as a trading currency. This means that Federal deficits will not be in dollars but yuan in the near future.
2) US owes it's debt in dollars and everyone (well use to be everyone) needs dollars to buy and sell things as the dollar is the world's reserve currency and everyone use to trade in it. This caused the game that the Federal Reserve and US government thought they had down pat. Borrow money to pay for excessive over charging of goods and services to the US government which benefits with huge profits (read Haliburton and others) to private businesses making the super rich even richer. When deficit gets too big inflate the economy and make the deficit look small compared to the new much higher inflated GDP for the US. Everything is fine and working well and it keeps common people behind the 8 ball as their wages do not keep up with inflation.
3) The government has been in a long cycle of overpaying for goods and services and borrowing the money to make the super rich even richer. Then inflating the economy to make the deficit look small this is doable as we owe the money in dollars. But the last time we tried to inflate the economy it collapsed as it was alread broken from years of abuse.
Well things are about to change forever Cramer.
Bernanke is a banker. He has filled the "profit hole" at the banks that was created by the housing debacle with QE. The value of QE is in the market. If you can't sell it at what you're asking it is not worth what you are asking.
Yes -- People are still putting money in 401Ks. There is other money in the market.
But -- It is not enough to take the bankers off their inflated position. They are stuck holding the pig with lipstick on it.
Those of you that make some dough doing day trades .......... good for you.
Those of you that are retiring and enjoying the inflate ..............good for you.
Bernanke is truly wrecking this country. Fighting recession and improving the economy is never a mission for the Fed to take up alone. If the Congress and Obama do nothing, it doesn´t give Bernanke the right to rob savers and bail out Wall Street and the big banks.
"... the Chinese government understands the deficit and inflation scheme the super rich are pulling in the USA. They have been hurt by the dollar dropping in value. So they are doing something about it. They are now trading in yuan and not the dollar. This means everybody soon will dump dollars for yuan."
When the same pariah rich people dump the Dollar to become Dons in Yuans... we will have to destroy them from their defective genetic code on up. By the way... anybody keeping up on the Son of Bird Flu story? Apparently that first attempt to turn us into drained-brain zombies didn't work, so they made up a new strain in the NWO labs. Three victims now... but they were able to get them to build some laptops before they dropped.
Pump $85 bil a month into any market for a while and the impact is inevitable.
Where in general is the prosperity?
"His eyes rolled over."
This is such a descriptive tale Bobo.............. LOL. I bet you get a lot of eyes rolling over.
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