If you have ever wondered how Federal Reserve Chairman Ben Bernanke got his job, this video should help.
In July of 2005, when asked about rising home prices, the possibility of a housing bubble, and the potential for this to lead to a recession in the future,Â then Chmn. of the Council of Economic Advisors, Ben Bernanke said:
It’s a pretty unlikely possibility. We’ve never had a decline in housing prices on a nationwide basis. So, what i think is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from it’s full [inaudible] path, though.
More highlights and predictions:
- 2005: “I’m confident that bank regulators will pay close attention to the kinds of loans that are being made, making sure that underwriting is being done right. I do think this is mainly a localized problem and not something that’s going to effect the national economy.”
- February 2007: “Our assessment is that there is not much indication at this point that sub-prime mortgage issues have spread to the broader mortgage market, which still seems to be healthy, and the lending side of that still seems to be healthy.”
- July 2007: “[Home] sales should ultimately be supported by growth in income and employment.”
This country should be glad we have a visionary like Mr. Bernanke running the Federal Reserve.
Hat tip to Rick Blaine for sending this video over.
In case you’re wondering if you can trust the opinions (and yes, they are obviously opinions and not facts) of the experts, we would direct your attention to a recent interview with Gerald Celente who says ‘If you follow political leaders, youâ€™re going down with the ship’.