“Pump to dump the Republicans” is now in full swing as Fed head Ben Bernanke looks to secure his reappointment and Obama’s reelection with a new Quantitative Easing (QE) maneuver even though he admitted in August that “the economy is far from satisfactory!”
Print money we don’t have but print it we will because America’s go to guy for easy money just pulled the lever of our printing presses to artificially pump the housing market hoping those new home owners somehow will make it to the polls in November to pull their vote levers for Barack Obama.
But wait a minute. Isn’t a loosey goosey housing market crisis what caused the 2008 crash? And doesn’t doing the same thing over and over to get different results constitute insanity? Well, maybe, not so much. If this financial snake oil salve worked in Obama’s favor then, maybe so now, and insanity turns into a Democrat campaign win.
Bernanke just took advantage of his own loose money policies when he recently re fi’d his Washington home by unloading his 2009 fixed rate mortgage with its 5.375 rate into a new fixed rate of 4.25% in 2011. This home was listed as being valued at between $500,000 and $1 million dollars with no exact figure being required for reporting purposes. And how about seeing this man’s former boyhood home sold to another buyer today for $83,000 in a foreclosure sale?
Bernanke’s policies really benefited the young banker who snapped up this great bargain when the former owners fell behind on their home payments. “The small town-Dillon, S.C.-that gave the Fed its chairman is suffering more than most with an unemployment rate of 14.2%, double the national average,” reports the Wall Street Journal.
“Federal Reserve Chairman Ben Bernanke offered a robust defense of the effectiveness of the Central Bank’s easy money policies in his August speech and left little doubt that he is looking toward doing more to give the economy a lift.” Really? Just how many more right pocket, left pocket slights of hand will Congress allow from this man and from his boss?
It didn’t take long for the damage to happen. One day after Bernanke’s stab in our financial back Egan-Jones (E/J),a major ratings firm cut its credit rating for the U.S. government to “AA-” from “AA.” E/J opined that Bernanke’s quantitative easing would hurt both our economy and our credit rating in world markets.