Bernake says "No Comparison" to Great Depression

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ryanduff

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Here's Helicopter Ben's latest PR stunt to keep things positive...

Bernanke says crisis 'no comparison' to Great Depression
Dec 1 05:33 PM US/Eastern
Federal Reserve chairman Ben Bernanke said Monday the current economic situation bears "no comparison" to the much deeper crisis of the 1930s Great Depression.

"Well, you hear a lot of loose talk, but let me just ... say, as a scholar of the Great Depression -- and I've written books about the Depression and been very interested in this since I was in graduate school, there's no comparison," Bernanke said in a question period after an address in Austin, Texas.

Bernanke cited "an order-of-magnitude difference" in the current situation compared to the 1930s.

"During the 1930s, there was a worldwide depression that lasted for about 12 years and was only ended by a world war," he said.

"During that time, the unemployment rate went to 25 percent, at least, based on the data that we have. The real GDP (gross domestic product) fell by one-third. About a third of all of the banks failed. The stock market fell 90 percent."

Bernanke said the situation at that time represented "very difficult circumstances," because "we didn't have the social safety net that we have today. So let's put that out of our minds; there's no -- there's comparison in terms of severity."

He added, "We're very lucky to live in a country as rich and diversified as the one we have. And I hope that we will have a quick and rapid recovery from the current slowdown."

Still, the Fed chief said lessons learned from the Depression may still apply today, including the "excessively tight monetary policy" that led to higher interest rates and deflation of about 10 percent a year over the first three years of the 1930s.

"We have learned from that experience that monetary policy has got to be proactive and supportive of the economy in a situation of difficult financial conditions," he said.

"The other part was -- the other error, the big mistake that policymakers made in the early '30s was they essentially allowed the financial system to collapse and they didn't do anything about it. The Federal Reserve did no action as the banks failed by the hundreds and the thousands."

In a related matter, President George W. Bush said in an interview released Monday that Bernanke and Treasury Secretary Henry Paulson warned him weeks ago that bold action was needed to avert a new Great Depression.

"I can remember sitting in the Roosevelt Room with Hank Paulson and Ben Bernanke and others, and they said to me that if we don't act boldly, Mr. President, we could be in a depression greater than the Great Depression," Bush told ABC News.

Bush said the conversation came four to five weeks after the government began mulling rescue plans for insurance giant AIG and other companies.

"And that was right before we went to Congress for the 700 billion dollars" in rescue funds, Bush said.

"And my attitude is, is that if that's the case, this administration will do everything we can to safeguard the financial system. And that's what we've been doing."
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Silly Ben, he should stick to pritning money and leave the jokes to the comedians.
 
What a jerk!!! Pay no attention to the men behind the curtain. And we just now find out we have been in a recession for a year?

Not to belittle those who survived the Great Depression but for the homeless and unemployed it really is becoming tougher every day for them to turn their lives around as more and more people are becoming jobless. Will they let us know its a depression a year after the fact as well?
 
moostraks said:
What a jerk!!! Pay no attention to the men behind the curtain. And we just now find out we have been in a recession for a year?

Not to belittle those who survived the Great Depression but for the homeless and unemployed it really is becoming tougher every day for them to turn their lives around as more and more people are becoming jobless. Will they let us know its a depression a year after the fact as well?
Click to expand...

They won't need to tell us that it's a Depression. We will see it right in front of our eyes.
 
Well, I agree with him somewhat... these events aren't really comparable and we don't know bad things will get and how long this correction will be. However, he lies (or rather, tells a half-truth) when he says:

"The other part was -- the other error, the big mistake that policymakers made in the early '30s was they essentially allowed the financial system to collapse and they didn't do anything about it. The Federal Reserve did no action as the banks failed by the hundreds and the thousands."
 
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Yeah, we don't have the lower population, smaller cities, more farmers and the manufacturing base we had then. Thank goodness it's nothing like the Depression and we have DHS and FEMA to keep us in line. :rolleyes:
 
I agree...............after all.........we survived the great depression. This time we may not be so lucky.
 
Paulitician said:
Well, I agree with him somewhat... these events aren't really comparable and we don't know bad things will get and how long this correction will be. However, he lies (or rather, tells a half-truth) when he says:

"The other part was -- the other error, the big mistake that policymakers made in the early '30s was they essentially allowed the financial system to collapse and they didn't do anything about it. The Federal Reserve did no action as the banks failed by the hundreds and the thousands."
Click to expand...

70% of all business... IS small businesses, not the Mega Corporations that are too big to fail!

Small businesses are FAILING at an alarming rate, yet we BAILOUT the worthless Black hole/Abyss mega corporations/banks. Created Debt by all these government enabled disasters of bad, evil, corrupt, and failed business plans, all for the public to pickup the tabs. Look for California to get at Least $11 Billion in some concocted BS PR Bailout... and a dozen other city & states.

It's mega government and corporations that want Inflations, want the Taxpayer's money, want the massive debt, want the people to spend, want control! Those Mega Corps and Government cannot survive without the Spend and Debt of the American People. They create Too Big To Fail for a Purpose, it's intentional, when it doesn't have to be... we've experienced this first hand with the 3 financial stooges; Blair, Bernake, and Paulson.

It's time for the American People to give a Big Middle Finger to Corporations/ (Banks) and Government!

Please remember... Government wants Price elevation and Inflation as high as possible without disrupting the economy to the point of Revolution.

But more importantly that Bernake hasn't mentioned in comparison : $100 TRILLION in current DEBT and Obligations, PLUS: A Very Bad Economy and double digit UNemployment which will double next year!

Oh, but the ECONOMISTS won't tell them until next December '09... then as usual, blame it everywhere but themselves... and noone goes to prison for destroying the standard of living, lives, careers, and saving of the people. No one is ever held accountable in government or wealth.
 
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HOLLYWOOD said:
70% of all business... IS small business, not the Mega Corporations that are too big to fail!

Small businesses are FAILING at an alarming rate, yet we BAILOUT the worthless Black hole/Abyss mega corporations/banks Debt, all these government enabled disasters of with bad, evil, corrupt, and failed business plans, all for the public to pickup the tabs. Look for California to get at Least $11 Billion in some concocted BS PR Bailout... and a dozen other city & states.

It mega government and corporations that want Inflations, want the Taxpayer's money, want the massive debt, want the people to spend, want control! They Mega Corps and Government cannot survive without the Spend and Debt of the American People. They create Too Big To Fail for a Purpose, it's intentional, when it doesn't have to be... we've experienced this first hand with the 3 financial stooges; Blair, Bernake, and Paulson.

It's time for the American People to give a Big Middle Finger to Corporations/ (Banks) and Government!

Please remember... Government wants Price elevation and Inflation as high as possible without disrupting the economy to the point of Revolution.
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Exactly.
 
I've been out of town for the past two weeks, so I have an excuse, but how in the HELL did my fellow Texans let Helicopter Ben give an address in Austin without a protest?
 
Dustancostine said:
I've been out of town for the past two weeks, so I have an excuse, but how in the HELL did my fellow Texans let Helicopter Ben give an address in Austin without a protest?
Click to expand...

I was beginning to wonder that myself... normally Bernanke tries to stay as far away from Ron Paul as possible. I couldn't imagine him even going to Texas!
 
"During the 1930s, there was a worldwide depression that lasted for about 12 years and was only ended by a world war," he said.

How can no one read that and at least wonder WHY we got into the war BESIDES getting our asses out of debt... well not out of debt but you know what I mean.
 
newyearsrevolution08 said:
"During the 1930s, there was a worldwide depression that lasted for about 12 years and was only ended by a world war," he said.

How can no one read that and at least wonder WHY we got into the war BESIDES getting our asses out of debt... well not out of debt but you know what I mean.
Click to expand...
"War is the health of the State" AND a racket. ;) :p
 
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