Enough with the Bernanke bashing

Within the confines of a totally dysfunctional government, the Fed chief has done what he can.

By Jim Cramer Sep 4, 2012 8:59AM

TheStreet.comEnough Bernanke bashing already. I am sick of it, just sick of it. Let me ask you a simple question: What have the other central bankers done right that makes him seem like such a dope to so many of you?

 

Sure, the Fed chief was slow to recognize the housing bubble that was created by his predecessor's attempts to stoke the economy after the burst dot-com bubble that his predecessor created by never raising margin rates. Sure, he should have cut to the bone in 2008, but commodity inflation was raging.

 

Since then, Bernanke has done his best to get housing restarted -- working; keep retail afloat -- working; and generate some construction of late. This is all within the confines of a totally dysfunctional government that includes the worst partisanship since the Civil War. Does everyone blame him for that, too?

 

Have you ever listened to Congress when it badgers this man? It's insane. Its members know so little that it is a wonder he even stays on the job.

 

In the interim, what have his colleagues done? Let's see, last year, former European Central Bank President John Claude Trichet raised rates twice. That was brilliant! That nailed inflation in its tracks, didn't it? That has to be the dumbest policy move of the decade. The ECB still has not come to grips with its crisis the way much-derided Bernanke has. We would really be calling for those guys' heads. As it is, we had to listen to a totally wrong Fed president from St. Louis, who advocated tightening here at the same time Trichet wanted it.

 

Is that what the Bernanke bashers want? A little solid tightening?

 

How about the Indians? They've done a bang-up job of slowing growth while stoking inflation. Bravo. Much better than Bernanke, no?

 

And let's deal with the Chinese, those so-called brilliant businessmen. Here you have a command economy, no GOP-Democrat fratricide there. They were supposed to have everything figured out. They have nothing figured out other than they know to dump goods into Europe and Europe ain't taking them anymore. That's the real cause of their problems. Is their central bank filled with genius? I prefer Lenin's New Economic Policy. Now, there was a central banker-cum-dictator who knew how to get the job done with maximum slaughter.

 

So I say enough of this already. Bernanke has done what he can. This is all on Congress and President Barack Obama. And if you want the world's economy jump-started, I think the German Supreme Court is more important than Bernanke.

 

Lay off him. That's an order.

 

Random musings: I'm thinking Facebook (FB) is really losing out to Twitter in part because of the latter's mobile apps. I like using Twitter more on mobile than on the desktop, in part because Facebook is trying to trick you into clicking on ads, which makes it so younger people will leave in droves. I liked Facebook as long as the migration from desktop to mobile was slow, and I was counting on that. But it turned out to be lightening-like, and that's why the numbers are slowing so badly. Happened on a dime, right around when Peter Thiel put in his sell order. Remember, as I wrote at the end of "Confessions of a Street Addict," it is better to be lucky than to be good. It was dumb luck that caused the sell program to be entered just when the desktop faded and mobile took off, wasn't it? Wasn't it?

 

Jim Cramer 

 

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 has no positions in the stocks mentioned.

 

 

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109Comments
Sep 4, 2012 10:14AM
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Hey Cramer this is a FINANCIAL CRISIS, the massive corruption that has plagued our monetary and fiscal policy for decades has contributed to this failed economy. The same names of individuals and Wall Street firms arises when investigating the facts of this fraud. Three former Goldman Sachs CEOs have held the position of Treasury Secretary, the calculation of economic numbers have been changed in the past to reflect low inflation while food and energy prices has soared. The funny money being printed has only benefitted the corrupt network that you hold so dear To refesh yyour memory the past three Goldman CEOs are,. Robert Rubin, his assistent Treasury Secretary under Clinton was Timothy Geithner, Jon Corzine has not been prosecuted for his fraud in the collapse of MF Global and Henry Paulson under Bush, dissolved the Office of Thrift Supervision so none of the Wall Street firms like Goldman Sachs could be investigated for this FINANCIAL CRISID. A collapse of the corrupt netwoek in 2008 would have cleared out the sclerotic process that is still plagueing America.
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What world do you live in Cramer???

 

Bernanke's policy of printing fake monies to keep the super rich super rich has failed

 

The real economy is now worse than the Great Depression and falling fast.

 

Cramer the US deficit has grown by 60 percent in the last three years due to the government having to spend tons of monies to keep unemployed people afloat along with the illegal aliens. Unemployment checks to the unemployed, welfare to the illegal aliens and huge tax refunds to the corporations like the $4 billion to keep GE afloat.

 

And the billions the government gave GM so they could close US manufacturing and open up plants in China and Russia.

 

Pretty much this proves Bernanke is a commie he is creating more jobs in Russia and China then he is creating here in the US and the job destruction is accelerating here in America.

 

If Bernanke put the over $25 trillion he has thrown at the financial crisis into building manufacturing jobs here in America and creating the 40,000,000 American jobs needed at a livable wage of $100,000 a year our economy would have recovered by now and we would have paid off 60 percent of the national debt instead of adding 60 percent to it.

 

Bernanke has failed as he is following the failed policy that they tried during the Great Depression. Throwing money at the super rich will not get the US out of the Greatest Depression we are in right now real GDP is south of $9 trillion probably even south of $7 trillion now.

 

You probably do not even know that $4 trillion dollars of the GDP number is totally fake. It's the rent we all get on our houses (assuming we still have a house) and living somewhere else for free. So instead of being a minus $4 trillion to the GDP it's a plus $4 trillion so about $8 trillion needs to come off the GDP leaving us at about $8 trillion for our GDP.

 

They put the number in there so the GDP numbers would not look so bad years ago. Now it's just masking how much trouble the US is really in. Our national debt to GDP is over 2 to 1 now.

 

Economic collapse is going to be sooner rather than later.

 

Bernanke is just adding to the problem not solving it.

 

Therefore he has to be a communist for creating jobs in China and Russia and taking jobs away from Americans.

Sep 4, 2012 11:00AM
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Awe Cramer, your emotional outburst defending Ben Dover Bernanke tells us a whole lot about your motives and preferences.  While he's an outright thief; you are an outright idiot!
Sep 4, 2012 10:34AM
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Clinton was lucky enough to have the DOT COM come along, but signed the bill for creative fiancing in 1998 or so.  Bush was stupid for going into Iraq, but the Housing Crisis you can blame on Barney Franks and Christopher Dodds.  They could not find their **** with both hands, well I should take that back, Franks found someone to find his ****.  And then the Hope of Change came along and all it was and continures to be is lip service from the individual no one knows a thing about.  Mr Socialistic Agenda who is in Office.  If the idea of stimulus was put into play, it should have been used for the intent.  Now the use as we know it know was payback to Oblama supporters.  And Mr. Bernanke should have been a watchdog.  That is his job to see the country gets on track when funds are moved around.
Sep 4, 2012 10:12AM
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I don't care if Kramer is sick of Bernanke bashing. He should of been fired and jailed years ago. He and Greenspan ruined our country, now the greatest debtor nation on earth. He presides over a phony economy and markets completely propped up by the government. If you think this is untrue, pull the government support and watch what happens. It will never improve until Bernanke and his ilk are gone.
Sep 4, 2012 10:57AM
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Jim not all of us make money off the poor and  wall street like you do some need interest income and Ben has not helped us. The banks owe Ben and they know it.
Sep 4, 2012 9:51AM
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Bernanke is a money terrorist.  He needs to let the free market do its job, and he won't let it happen.  He is  going to sink the dollar for good soon.  Just prepare.  Bernanke is a JOKE!!!!!
Sep 4, 2012 11:19AM
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Bernanke needs to be bashed. You need to be bashed. Wall Steet needs to be bashed. The Congress needs to be bashed. The President needs to be bashed. Corporations, like GM (who are investing billions of dollars abroad instead of here at home), they all need to be bashed. The shyster criminal banksters need to be bashed, prosecuted, and jailed. If this whole "keeping the interest rate at zero-percent interest" isn't just open manipulation of the markets by the FED, then I don't know what is. The FED policies are killing the average American retiree, eating into the meat of all pension plans and savings accounts.
Sep 4, 2012 10:46AM
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If you combined the IQ of both of these self servers, they'd have to share a minus 1, like the interest rates and stock market over the past 12 years.
Sep 4, 2012 9:39AM
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Cramer is and accomplice to financial terrorism. He'll hang with the rest of these criminal bankster racketeers when the people finally wake up and realize the magnitude of fraud and plunder they've perpetrated on the masses.
Sep 4, 2012 11:07AM
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He needs to be bashed. Like Geitner, he's all smoke and mirrors, with no substance. They both think they know what they are doing and while it may work for them, it doesn't do anything for the economy. They both make money and the rest of us pay for it.
Sep 4, 2012 11:26AM
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Will be 16 Triilion in debt by Friday.  We owe more than our entire econmy generates in a year!  More than all the GDP in Europe.  Wow!  And they want you to think everything is gonna be alright...How is it going to be alright.  Everything is based on growth....well I would hatet to break it to you...but you cannot grow forever!!!!!
Sep 4, 2012 10:05AM
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Here Jim quit kissin buns Go Here 19 reasons why the Federal Reserve is at the heart of out economic troubles. Their not even a Federal agency!
Sep 4, 2012 11:35AM
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Like a person who provides money to the homeless to buy booze and drugs, Bernanke has been keeping interest rates low so Congress doesn't feel the pain when it runs up huge annual deficits and debt. Bernanke is an enabler for an addict in their addiction.

With Zero Interest Rate Policy, banks no longer have a legitimate way to earn profits, so they turn to speculation and highly leveraged and risky investments called derivatives. Sure, the banks are greedy, and probably would have done them anyways. But instead of bailing out the banks, he should have taken a principled capitalist stand and let them fail. Now, he should break up the big banks before they fail, because the taxpayers can't bear the burden of another bailout. But when the big banks collapse, they will cause a major financial collapse.

Sep 4, 2012 12:04PM
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Cramer, your problem is, you fail to see the price we all pay for today's liquidity. These artificially low interest rates come at a price to all americans. Hyper inflation will more than offset the the paltry GDP numbers created by debasing the dollar. This QE economy, as I like to call it, has created artificial market conditions in stocks, banking, construction, and housing. Stock market bubble created by the Fed. purchasing treasuries driving down yields to force investors into the market. Banks taking 0% money from the Fed. and speculating in stocks while discouraging savings with .1% interest rate on savings accounts and 1 or 2% on CD's forcing many older individuals into poverty. Construction of new homes and commercial properties when supply of vacant properties is at an all time high. Housing prices being kept afloat by a huge shadow inventory of dilapidating homes that the banks have been given the green light to hide off their balance sheets as liabilities by carrying them as assets. This is done by the false market to model, rather than the true value market to market accounting practice of the past. You see true market forces are not being allowed to determine the value of assets, and this no mater how you try to rationalize it is a recipe for disaster. The result is not if the big correction is coming, but when. 
Sep 4, 2012 1:55PM
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@ truth and honesty,

Lets try a little of that shall we? When you buy a house (as you use as an example) if your SMART, you buy a house that you can afford, that will go up in value (so as to be an inflation hedge), and you maintain it properly so that it will serve you well for decades. You don't spend your mortgage money on extravagant vacations and generally living beyond your means. While it's good to donate to charities you would not give your mortgage money to them, you would give from discretionary funds knowing that your employer is not going to give you more money just because you squander your income.
The American people in general have always known that the govt. needs to borrow money for infrastructure and unforeseen expenses and don't have a problem with that as these expenditures have a return.
BUT the U.S. has gone deeply in debt with one folly after another. 2 recent "wars" and counting that have run up the deficit by trillions and have accomplished nothing else. Trillions thrown away on so called "aid" programs to countries that are so dysfunctional they could never be helped. Trillions spent propping up dead companies and bailing out politicians buddies in the financial markets (paying off their gambling debts).
Americans aren't pissed off that the govt. borrows money, their pissed off that their money is being thrown around like confetti at a parade and they have to do without and pay for it .
Then we see Cramer here today telling us essentially that we should just shut up and take it with a smile and say thanky massah sir thanky.

Sep 4, 2012 10:56AM
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It´s not that Bernanke is to blame for everything, it´s just that he has been taking responsibility for doing what´s not his job. In a way, it makes room for the Congress to stay inactive and the economy don´t get reformed the way it needs to be. It stays in the doldrums.
Sep 4, 2012 10:11AM
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Kramer is sick........................................of all the talk.  Then he should stop listening.  Put on some earplugs....................take another vacation to Mexico............that would help all of us....

Sep 4, 2012 1:38PM
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Yes interest rates are too high. I'm sure if we see Bernanke act, the rates will go even lower and there will finally be a line at the bank. RFLMAO. Even if we did see a line, do you think anyone in the lower or middle class would qualify for a loan ? Do you think the job creators will start hiring ? Is our lack of jobs because the interest rates are not low enough ? It is NOT the interest rates stupid- it is JOBS. It is the evaporation of the middle class.
Sep 4, 2012 9:53AM
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