You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #27: Finding Self in Hole - Bernanke digs Deeper [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-18-08 06:56 AM
Response to Reply #8
27. Finding Self in Hole - Bernanke digs Deeper
Charting a course out of credit crisis

WASHINGTON (Reuters) - When U.S. Federal Reserve officials gathered for their annual Jackson Hole conference last August, Bear Stearns shares were trading at well over $100 apiece. The benchmark federal funds rate was 5.25 percent, more than double where it stands now, and oil cost about $70 a barrel.

Twelve months later, Bear Stearns is gone, as is about $400 billion from banks' balance sheets. Legendary oilman T. Boone Pickens thinks the days of oil under $100 a barrel may be gone, too.

Looking back at the 2007 conference provides some cringe-inducing moments.

In his speech at the Wyoming mountain resort, Fed Chairman Ben Bernanke declared that the central bank was ready to act to shield the economy from the credit crisis but would not save investors who made bad choices.

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions," he said at the time, words that now sound ironic in light of the Fed's role in rescuing Bear Stearns from bankruptcy in March.

Printer Friendly | Permalink |  | Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC