Saturday, January 14, 2012

These economist are still listened to....

Not that they have a clue on how are system works. It's a good thing we don't listen to them or our economy would crash, right?

Oh wait! We did listen to them 2006. They were on TV all the time telling the home owner and old geezers their money was safe and nothing could destroy the equity in their houses. And told guys like me we were crazy for not investing in the stock market and not paying off our homes.

People who listened to them are dead broke and homeless or soon will be!

Bies, cont. “ However… let me just say that the bottom line is that overall mortgage credit quality is still very, very strong. ”

Yellen, Oct. ’06: “Of course, housing is a relatively small sector of the economy, and its decline should be self-correcting.”

Mishkin, Sept. ’06: “The excesses in the housing sector seem to be unwinding in an acceptable way… I’m actually quite positive.”

Geithner, Sept. ’06: “We just don’t see troubling signs yet of collateral damage, and we are not expecting much.”

Lacker, Sept. ’06: “I’m still fairly skeptical of large indirect spillover effects on employment or consumption.”

Minehan, Sept. 06: “Buyers should recognize housing [is] more affordable & resume purchases, perhaps w/out further major price declines.”

Bies, June ’06: “So I really believe that the drop in housing is actually on net going to make liquidity available for other sectors...”

Fed staff report, June ’06: “We have not seen—and don’t expect—a broad deterioration in mortgage credit quality.”

Bernanke, March 2006: “Again, I think we are unlikely to see growth being derailed by the housing market.”

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