CHESSNOID

We know how smart the man is and how well educated he is.  He is one of those academics who knows too many theories but has  never seemed to put those ideas to practice. At least not correctly.  It wasn’t too long ago, he was the man who predicted there was no housing bubble, then later predicted there would be no recession, and then helped usher in the fraudulent bailouts.

He was the man who thought he knew too much, but in retrospect knew too little.  It is ironic that both Presidents Bush and Obama thinks he did a great job steering the US economy into the Bush-Obama Great Recession (Depression).

Bernanke Wrong on the Housing Bubble, the US Economy, and the Great Recession

Here is an old article where we learn from the beginning he was wrong.

Washington Post:

Bernanke: There’s No Housing Bubble to Go Bust
Fed Nominee Has Said ‘Cooling’ Won’t Hurt

By Nell Henderson
Washington Post Staff Writer
Thursday, October 27, 2005; D01

Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve.

U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke, currently chairman of the president’s Council of Economic Advisers, in testimony to Congress’s Joint Economic Committee. But these increases, he said, “largely reflect strong economic fundamentals,” such as strong growth in jobs, incomes and the number of new households.

Bernanke’s thinking on the housing market did not attract much attention before Bush tapped him for the Fed job Monday but will likely be among the key topics explored by members of the Senate Banking Committee during upcoming hearings on his nomination.

Many economists argue that house prices have risen too far too fast in many markets, forming a bubble that could rapidly collapse and trigger an economic downturn, as overinflated stock prices did at the turn of the century. Some analysts have warned that even a flattening of house prices might cause a slump — posing the first serious challenge to whoever succeeds Fed Chairman Alan Greenspan after he steps down Jan. 31.

Bernanke’s testimony suggests that he does not share such concerns, and that he believes the economy could weather a housing slowdown.

“House prices are unlikely to continue rising at current rates,” said Bernanke, who served on the Fed board from 2002 until June. However, he added, “a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.”

Greenspan has said recently that he sees no national bubble in home prices, but rather “froth” in some local markets. Prices may fall in some areas, he indicated. And he warned in a speech last month that some borrowers and lenders may suffer “significant losses” if cooling house prices make it difficult to repay new types of riskier home loans — such as interest-only adjustable-rate mortgages.

Bernanke is making the rounds and explaining why the Fed should not be audited. This is a man who has impaired judgment and FAILED to make a difference during a critical time. He ignored other economists because he thought he was smarter than everyone. Fast forward 4 years later and he seems to have forgotten he has been consistently wrong about the economy every single time.

Support Ron Paul’s effort to Audit the Fed.