Predictions from Ben Bernanke and Henry Paulson—We Trust These Officials with Our Economy
Federal Reserve Chairman Ben Bernanke and former Treasury Secretary Henry Paulson unfortunately make an incredible team for wrong forecasts. With the performance shown here, you have to wonder why they are given so much credibility.
March 28th, 2007—Ben Bernanke: “At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”
March 30, 2007—Dow Jones @ 12,354.
April 20th, 2007—Paulson: “I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained.” “All the signs I look at” show “the housing market is at or near the bottom.”
July 12th, 2007—Paulson: “This is far and away the strongest global economy I’ve seen in my business lifetime.”
August 1st, 2007—Paulson: “I see the underlying economy as being very healthy.”
October 15th, 2007—Bernanke: “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.”
February 28th, 2008—Paulson: “I’m seeing a series of ideas suggested involving major government intervention in the housing market, and these things are usually presented or sold as a way of helping homeowners stay in their homes. Then when you look at them more carefully what they really amount to is a bailout for financial institutions or Wall ...