Ben Bernanke and the Housing Crisis

Ben Bernanke likes to use the “burning house” analogy --

If the neighbors' house is burning because he was stupidly smoking in bed, do you let it burn & take the chance it will catch yours on fire, or do you put it out?? Of course, he says ‘you put it out” (so would I).

We get something similar in the banking situation -- Bernanke says we need these experts to fix the mess, even though they caused it !!!! It’s like saying that “the neighbor started a fire in his house and it spread to yours -- but we aren’t going to put him in jail for destruction of property, even though he willfully SET the fire, because he is a fireman and is needed to put out fires across town”. BULLSHIT!

Would you put a “former” child molester in charge of your kids because he knows the ways that molesters try to harm your kids? We get a similar arguments when placing people in high positions, like SEC Chair. They tell us we “want this guy because he knows where the skeletons are buried”. I SAY these guys know where the skeletons are because they PUT THEM THERE, and are now being given a position to HIDE the bodies!

3/15/09

Also -

TO CNBC -- HEY - why not, since "we" own AIG, force it into Chapter 11, wipe out all contracts, fire those responsible, etc.

Any such announcement would have to present ALL such points at the same time -- in fact, the contracts and any other "positive" things should precede the Chapter 11 comment.