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Bernanke takes on Sheila Bair, disavowing any Fed responsibility for creating a bond bubble and...

Bernanke takes on Sheila Bair, disavowing any Fed responsibility for creating a bond bubble and saying its up to those owning government paper to manage their own risks. There are good reasons for rates to stay low for now, he says, not ready to "declare victory" and let fixed income price on its own.
Comments (22)
  • Lakeaffect
    , contributor
    Comments (972) | Send Message
     
    "manage their own risks". That is somewhat true. Bud does that include the Fed, who buys a big chunk of those Treasuries in order to depress the interest rate?

     

    Who is taking the risk when they do that?
    25 Apr 2012, 03:09 PM Reply Like
  • Prof. MAd
    , contributor
    Comments (3) | Send Message
     
    You and I - taxpayers
    25 Apr 2012, 03:22 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Kind of a weird statement when he has a gun to your head to buy US treasuries or else....
    25 Apr 2012, 03:13 PM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    The Fed is not depressing the Baa Corporate rate...that it is a reflection of the market....you guys think Bernanke controls all the
    levers,,,he is just trying to keep a depression from occurring....
    25 Apr 2012, 03:14 PM Reply Like
  • Old Rick
    , contributor
    Comments (476) | Send Message
     
    If he and the Gov't would have largely stayed out of it, we would have had a depression but a la 1920-21 rather than the ongoing (5 years now with more on the way) horrid economy. Plus you would not have had repression of savers (Mom, Pop, Grandma) that you do now. C'mon back bbro in another year or so if YOUR guy is reelected and tell us how great things are. BTW saw your data mining stat on gas prices. Neat when you pick the time frame.
    25 Apr 2012, 03:19 PM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    We would have had 25 to 30% unemployment...and most people on
    this web site would not be on it because they would gotten rid of their
    computers because they could not afford it. Savers are paid for the measure of risk they are willing to take,,,no risk,,,No return especially
    in a depression....remember Bernanke is a Republican,,,and an extremely smart one...he is not a OB/GYN from Lake Jackson Texas...thank god
    25 Apr 2012, 03:35 PM Reply Like
  • The_Hammer
    , contributor
    Comments (3810) | Send Message
     
    Yes real private estimates of unemployment are 22% bro. I would believe it. Participation rates are falling and falling and falling.

     

    Bro Are u a shill from the Fed? I would not put it past the Fed to go out into blogosphere to corrupt such debate.
    They manipulate just about every single market. Anyone watch the gold market it tanked immediately after the GODs statement then rebounded swiftly then the Fed came out with another comment later to try to knock it down.
    The gold price is what keeps these clowns up at night. Gold is the biggest threat to their power. unfortunately their idiotic misguided policies have started the ball rolling down hill as countries prepare to reduce dollar influence in their transactions and commerce.
    25 Apr 2012, 04:32 PM Reply Like
  • Old Rick
    , contributor
    Comments (476) | Send Message
     
    Risk free rate has never meant NO return. It has historically (back to Roman times anyway) been about 1.5-1.75% plus inflation. That means that risk free rate (short term Ts) should be about 3.5% even with the cooked up CPI numbers. Your last comment is a pretty disgusting new low even for you bro! Not sure if you were insulting OB/GYNs or Texans or Austrians but it was pretty low. Bernanke and Greenspan are classic examples of "if your only tool is a hammer, every problem looks like a nail".
    25 Apr 2012, 08:07 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    Learn to recognize excellence in policy.

     

    As for Gold - it is a sideshow - of a sideshow.

     

    The only thing that keeps the Chairman up at night is the errant stupidity of Congress and the Administration

     

    Bernanke for President

     

    E
    25 Apr 2012, 08:56 PM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    If I insulted any other OB/GYNs from Lake Jackson who don't care about Austrian Economics....I apologize...

     

    P.S. I am a real Texan....a maverick ( look it up)
    26 Apr 2012, 02:39 AM Reply Like
  • The_Hammer
    , contributor
    Comments (3810) | Send Message
     
    Just taking names and kicking butt when Bernank and his academic pompous stooges are lynched by the poor, retirees and middle class.
    27 Apr 2012, 08:16 AM Reply Like
  • The_Hammer
    , contributor
    Comments (3810) | Send Message
     
    <<<he is just trying to keep a depression from occurring....>>

     

    So the misguided fool who played a major role in causing this mess is going to save us?
    The only ones he is saving is the rich elite banksters and politicians.
    Bernank is the biggest enabler of such corrupt irresponsible behavior.

     

    bro u are digging a deep hole for yourself and your credibility is falling. I wouldn't put it at the level of the NAR yet though.
    27 Apr 2012, 08:25 AM Reply Like
  • into dark shadows
    , contributor
    Comments (322) | Send Message
     
    ...and you expected something different?

     

    Surly you jest!

     

    Don't call me Shirley!
    25 Apr 2012, 03:14 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Sounds like Sheila Bair hit a Bernanke nerve, big time! He sounds awfully defensive for someone so certain that he's right.
    25 Apr 2012, 03:19 PM Reply Like
  • Old Rick
    , contributor
    Comments (476) | Send Message
     
    Yeah, he was certain that housing was NOT in a bubble in 2006-7 either.
    25 Apr 2012, 03:22 PM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    Sheila is a government hack with a law degree,,,,Bernanke for President
    25 Apr 2012, 03:37 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    But by going out to 2104..he just stole another few trillion from the pension boys coffers....oh oh...
    25 Apr 2012, 03:22 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    Uncle Ben has his own agenda. It called transfer wealth to bankers, politicians and big corporate america. He really doesn't care about the unintended consequences to the majority of economy and citizens.
    25 Apr 2012, 03:32 PM Reply Like
  • kmi
    , contributor
    Comments (3983) | Send Message
     
    Caveat emptor, especially for those who fancy themselves 'sophisticated' investors....
    25 Apr 2012, 03:59 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    Sheila Bair is a nobody.

     

    Bernanke saved the Republic. He probably saved the planet. All of you should get down on your knees and thank your favorite deity that The Chairman was/is/will be at the helm.

     

    The guy has put on a monetary policy clinic since 2008. and if you want to see the contrast with the alternative - look at what Trichet was doing 12 months ago and where that ended up.

     

    Bernanke for President.The only adult left in Washington.

     

    E
    25 Apr 2012, 08:53 PM Reply Like
  • dinkys
    , contributor
    Comments (15) | Send Message
     
    by definition, : anybody investing in Fixed income and not getting

     

    the inflation rate ,is taking a huge risk.....One of those is Big Ben
    Bernanke, who beleive that buying Treasurys at very low rate below inflation,and penalising the small investors
    and the consumers, is doing a Great job to US citizens

     

    he must be penalised too....!!! tied up his hands...
    26 Apr 2012, 09:46 AM Reply Like
  • Ray of hope
    , contributor
    Comments (159) | Send Message
     
    Dear Friends,
    Bernanke did not save the Republic. Barnanke saved the irresponsible bankers and financiers from bankruptcy, so these folks could continue their irresponsible ways.
    Bankruptcy is the natural way for the Market to rid the irresponsible from their power.

     

    Peace goodwill ... Ray
    PS: It is impossible to avoid a "hard landing" when interest rates raise.
    26 Apr 2012, 01:28 PM Reply Like
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