Janet's Conner

This Blog tell the Truth and will never not tell the Truth. Impeach Bush

Wednesday, May 24, 2006

ANOTHER INCOMPETENT BUSH APPOINTEE: FED CHAIRMAN

ANOTHER INCOMPETENT BUSH APPOINTEE: FED CHAIRMAN CAUSED STOCKS TO DROP

Bernacke regrets remarks to CNBC reporter

WASHINGTON, (AP)---Federal Reserve Chairman Ben Bernanke said Tuesday he suffered a "lapse in judgement" by talking recently to a CNBC anchor, a conversation that caused the stock market to tank when his comments were reported.

Sen. Jim Bunning (R-KY), asked Bernanke about the episode during a Senate Banking Committee hearing on financial literacy.

"Senator, that epidose you refer to was a lapse of judgement on my part," Bernanke replied. "In the future, my communication with the public and with the market will be entirely through regular and formal channels."

***This country cannot afford "another" illiterate to be running this country. These people don't listen before they speak. Everytime they open their mouths, you wish you were there to catch the words that are coming out of them! Haven't they caused "the people enough grief?"

Bernanke took over the job on Feb.1. On a congressional appearance on April 27, he had raised the possibility of the Fed pausing its two-year, credit-tightening campaign. Stocks rallied that day.

But on May 1, CNBC reported that Bernanke had told CNBC anchor Maria Bartitomo that investors has misinterpreted his recent congressional remarks as an indication the Fed was nearly done raising rates----which had been up for most of that day---slumped.

Bernanke had actually talked to Bartiromo a few days earlier---on April 29---at the White House Correspondents Association's annual dinner.

Besides raising questions about Bernanke's communication skills, the incident underscored the fact that a single word uttered by a Fed chief can move stock and bond prices.

At Tuesday's hearings, Bunning, who opposed Bernanke's nomination as Fed chief, said: "I warned you to be careful about what you say because people are going to follow your words very closely."

Bunning also took issue with the Fed's decision to push interest rates higher to fnd off inflation. The Fed's last rate hike, on May 10, left a key rate at a five-year high of 5 percent. It marked the 16th increase since June 2004.

Bernanke defended the action. He pointed out that he and his Fed colleagues at the May meetings noted there were some inflation risks to the economy. In terms of the Fed's next rate decision in late June, though, Bernanke said the Fed will rely heavily on what incoming barometers say about inflation and economic activity.

Between now and then, "we'll be watching that data very carefully," Bernanke said.

The exchange came at a hearing focused on financial literacy. The Fed chief told the panel that sharpening Americans' financial know-how and skills is crucial to consumers' ability to make smart money choices and is also good for the overall economy.

***How can we, as consumer's make smart money choices when there is no money to go around anymore. The only smart money choices the everyday American can make nowadays is whether we can afford to go to the mall or to Wal-Mart. The Republicans love it when we go to Wal-Mart becuase that's who owns them!

Consumers with the necessary skills to make informed financial decisions about buying a home, financing an education or their retirement or starting a business will almost certainly be economically better off than those lacking those vital skills, Bernanke said.

***Buying a home, an education or especially planning for a retirement is a thing of the past for most Americans. You used to hear people talking about taking an early retirement. Not anymore! Not ever since this administration has come along. When they came into power, they redistributed the wealth of this country! I guess they thought that their friends and campaign contributors didn't already have enough!

Bernanke said he believes competition is the best way for promoting the provision of better, cheaper financial products to consumers.

He said research says that financial education and credit counseling can help people make better choices. That's important not only for adults but also for teaching young people the basics of making good financial decisions, he said.

But young people are flunking when it comes to their understanding of basic financial matters, research says.

Young people are flunking when it comes to basic financial matters because they are living paycheck to paycheck, since the American worker has now been made to work for lower wages or we get threatened by the immigrant workers that Bush wants to make legals. Does Bush actually think that when these people become American citizens, that they won't start making demands too? Then what happens? Even more illiegals start crossing the borders again to do the work that the "newly made American citizens" don't want to do! Our young people don't have any extra money to invest in their futures, so they figure, why learn about something you can't get involved in.

On average, high school seniors answered correctly only 52.4% of questions about personal finance and economics, according to a natiowide survey released in early April. Still, that was a smidgen better than the 52.3% in the previous survey in 2004 and was up from the lowest-ever score of 50.2% in 2002.

The surveys, done every two years, were sponsored by the Jump Coalition for Personal Financial Literacy, which wants students to have the skills to be financially competent.

Bolstering financial literacy---while important---isn't a cure-all, Bernanke said.

"Clear disclosures, wise regulation and vigourous enforcement are also essential to ensuring that financial service providers do not engage in unfair or deceptive practices," he said.

Securities and Exchange Commission Chairman, Christopher Cox, who also appeared before the panel, said the SEC would likee to see corporate annual reports and mutual fund prospectuses written more clearly so they are easier for investors to understand.

Bush has given corporations a free pass to make the rules since he came into office. There is no oversight and that's the problem. Corporations can do whatever it is they want to do. The Corporations are the ones that sat down with the Bush Administration and made up the policies! Take it from there.........


Source:SFGate
By: Jeannine Aversa
AP Economics Writer
May 23, 2006

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