Thursday, September 30, 2010



Bernanke defends economic models that missed crisis
More work needed on how financial sector impacts growth

...
Rather than throwing out the models, more work was needed to capture how the financial system impacts growth and stability, Bernanke said.

Bernanke said the financial crisis was an old-fashioned bank run with different actors. This time, the role of depositors lining up to withdraw funds from a bank was played by money-market funds, Bernanke said.

Regulators and market participants failed to recognize the risks of the potential for runs from institutions instead of citizens, he said.

Older economic research on bank runs from the late 1800s was still relevant to this crisis, Bernanke said
...

... well, has been the patch to keep the system running ...
... but it is now self evident that bank runs will continue to happen ...
... more and more frequently as we enter the high of the "interesting times" ...
... of the "scavenging age" of post "peak everything" ...

... now twice has been proven with 1929 and 2007 ...
... that wall street banks will ruin the world for profit ...
... if "the whole world" wants to save itself from wall street ...
... either is needed a global end of private central banking ...
... or is needed a "realignment" of currency and energy ...
... with a "non accumulated" energy currency ...

... either way would mark the end of the wild west capitalism as we know it ...
... "or", if not possible, will mark the start of the age of uncertainty ...
... waiting from the pearl harbor starting the third world war ...
... seems the same story of 1929 at the square ...
... happening just faster ...

... there may not be any other possible "civilized" solution ...
... than further, "sober", monetary easing ...
... but in the long term ...
... it looks more sane a realignment ...
... to a currency pegged to something "real" like energy ...
amon





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