Too Big To Fail

Uncertainty on Bernanke Vote Raises Economic Fears

Economists warn a defeat of Federal Reserve Chairman Ben Bernanke's quest for another four-year term could raise the risk of a "double dip" recession.

WASHINGTON -- A defeat of Federal Reserve Chairman Ben Bernanke's quest for another four-year term could raise the risk of a "double dip" recession if political jousting over a successor were to drag on for months, economists warn.

But Bernanke's prospects appeared to brighten Sunday, with three more senators, including Republican leader Mitch McConnell of Kentucky, predicting he'll be confirmed. A vote is expected later this week.

Any of this sound familiar? And I wonder.....just who are these "economists" that are making this dire prediction. I'll bet that they are probably one in the same as those who somehow never saw the sub prime mortgage debacle collapsing the system.

And here is more.

Still, the chance of Bernanke's defeat has unsettled Wall Street, contributing to last week's 4 percent loss by the Dow Jones industrial average, its worst performance in 10 months. If Bernanke were rejected, uncertainty over a successor would further roil global markets, at least in the short run.

Anxiety, along with sagging investments, could cause consumers and businesses to cut spending. Joblessness, already at 10 percent, could worsen. And the recovery might fail.

Economists who fear a double-dip recession -- in which the recovery would collapse into another recession -- regard it as a worst-case scenario. But they don't rule it out, either.

The fear of Bernake's defeat unsettled Wall Street? WTF? Wall Street was doing just fine until Obama spoke up last week and said that he intends to chain American banks to the ground, while his socialist counterparts in Europe applauded his decision, but quickly added that they didn't intend to follow suit.

And somehow or another? This report and others in media seem to have completely missed that little piece of trivia and they are attributing Bernake's weakness to his unsettling record while at the Fed?

Sounds suspiciously like something I have heard before. Someone seems to think that Bernake is too big to fail. Somehow his tenure as Fed chairman must be preserved.

I for one believe that last week was a wake up call for both Bernake and Geitner. They were both targeted by this White House, as the president's handlers scrambled to address the Obama defeat in Massachusetts. And they are attempting to re-tool the president's image with the public. But they are doing it via a ruse. Axelrod and Emanuel may very well throw Geitner under the bus, but they have no intention of doing the same to Bernake. They merely want him to seem and feel threatened, while they proceed to line up their new man Volcher for the second take over of the US treasury. Geitner simply becomes the fall guy for this round by default.

And they are doing this by focusing the people's attention in a different direction, while the mass media happily dances to their tune. Suddenly the president has seemed to discover and take note of the fact that we have a problem with the economy and the continued loss of jobs in this country. I am glad that he spotted it, as those two things had apparently gone unnoticed by most Americans and completely took us by surprise until Scott Brown won the Kennedy senate seat in Massachusetts last week.

I hope that America is awake and wises up to this latest version of the progressive liberal socialist two step. These is nothing new here folks, just the same two ploys that these socialist have used repeatedly for the past year.

First, create a crisis, then exploit that crisis. Second defend your decisions by applying the forced perspective that some things are just too big to be let go to failure. Expect to see that same logic appear again over the next year and expect it be re-applied every time any socialist give away program is brought to the fore front and discussed as a potential failure.

Obama has had his ass handed to him by the people of Massachusetts and as a result, this administration has been forced to admit what is lurking for them come November. The only questions that need to be resolved in their minds are these.

Can we possibly salvage our socialist health care plan right now? And can we continue to operate our agenda via the use of a complicit media that lays down a smoke screen for what we are actually doing?

Obama brought Volcker to the forefront last week to serve two purposes. First to give the impression that he is focused on the main issue of concern to the American people. And that issue is the economy and jobs. Never mind hat he has in essence ignored those two items for his entire first year in office, while he pursued his socialist agenda (health care reform).

That was then, this is now and Barry wants America to know that he his back on the job now. So he trots out Volcker to be the conspicuous cardboard cutout behind the president while he makes his announcement of his latest intentions concerning American banks.

This ploy serves to put both the banks and the people on notice. First by threatening the banks, Obama (his handlers) knows that he (they) can create another straw man crisis. And as obvious by the immediate reaction on Wall Street to the announcement, the first part of the ploy has worked wonderfully.

Secondly, he knows that by threatening Bernake's tenure at the Fed, the banks and their people will rush in to prop up and support the re-nomination of the faltering Fed chairman, as the banks see Bernake as the only friend that they really have now in government. Therefore, having Bernake on their side, it will be far more acceptable to them when the president follows through on his desire to chain, strip of all independent power and control, all aspects of the banking system in America.

And to think.....there are Americans that believe that the creation of the Fed was the real tragedy of government that was allowed to stand and has caused what we see today. Wait until these folks get a grasp of what Obama is about to put forth as the socialist 'coup de grâce' of this millennium.

The capitalist goose is ripe for the plucking ladies and gentlemen and as his best advisers (controllers) have previously noted, never allow a good crisis to go to waste. The part that they didn't mention at the times was that they intend to create those crisis' every time they feel that their progressive (new party) agenda is threatened.

And for a brief moment last week, Scott Brown threatened their agenda.