A couple days ago Fed Chairman Bernanke proudly proclaimed that the recession in this country is most likely over. This was a few weeks after he arrogantly took credit for saving the world from global financial disaster.
Let’s look at a couple datapoints to see validity of Bernanke’s boast:
1) Yesterday, the CEO of Chrysler and Fiat said that auto industry sales are off 19% so far in September after the cash for clunkers program ended: Auto sales
2) Fed Ex reported today that their revenues were down 20% in the most recent quarter vs. the same quarter a year ago. Fed Ex is considered a key indicator of economic activity. Or perhaps this is what Bernanke was looking at…
3) Credit card defaults usually track unemployment, rose to a 26-year high of 9.7 percent in August.
So the question remains, is Bernanke a complete idiot, an ivory tower geek who is blind to the facts or just completely corrupt? Clearly, if you watch the video footage of his past statements about the economy from an earlier post Link, it’s hard believe ANYTHING that comes out of Banana Ben’s mouth. It brings to mind an old rhetorical riddle about traders from my Wall Street days: “Question: how do you know when Bernanke is lying? Answer: when his lips are moving.”
“The last duty of a central banker is to tell the public the truth.” Alan Blinder, Former Vice Chairman of the Federal Reserve