The scariest thing about reading this report is to consider that Ben Bernanke might truly believe what he says—that his economic blindness is so deep he is authentically incapable of seeing reality.
From Zero Hedge:
So what was the reason, according to the man who was easily the most powerful person in the world for nearly a decade?
“Overconfidence.” (no, not “weather”)
Yup. That’s it.
“The United States became ‘overconfident,’ he said of the period before the September 2008 collapse of U.S. investment bank Lehman Brothers. That triggered a crash from which parts of the world, including the U.S. economy, have not fully recovered.
‘This is going to sound very obvious but the first thing we learned is that the U.S. is not invulnerable to financial crises,’ Bernanke said.”
But wait, because the punchline beckons:
“My natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person,” Bernanke said today in his first public remarks since leaving the Fed in January, referring to the central bank’s mandate from Congress to ensure full employment and stable prices. “The complexity though arises because in order to help the average person, you have to do things — very distasteful things — like try to prevent some large financial companies from collapsing.”
“The result was there are still many people after the crisis who still feel that it was unfair that some companies got helped and small banks and small business and average families didn’t get direct help,” Bernanke said. “It’s a hard perception to break.”
So there it is: the system crashed because we were “overconfident” – nothing to do with system merely having gorged on the reactionary excess to the popping of the dot com bubble – but Bernanke is 100% certain he could have done more to help the average person, because the Fed’s balance sheet trickle down eventually works.
Is it possible he actually accepts that the best way to benefit the average person is by counterfeiting money… handing it to the wealthiest sociopaths in the world… and then forcing those average guys to pay the principle and interest on that counterfeited money, while his rich friends speculate with it, pay themselves multi-million dollar bonuses when they “succeed,” and get bailed out yet again when their gambles fail?
It takes a ton of high-cost, high-falutin’, Ivy League edumacation to brainwash a man into believing such obvious nonsense.
Of course, the alternative is that he knows it’s all hogwash, and that getting $250,000 from groups in international high finance for nonsensical little speeches is his subsequent payback for a job well done.