STOCK MARKET WATCH -- Friday, 13 January 2012

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58. At it's peak, Bernanke enjoyed the view.

In March 2006, according to the WSJ article, Bernanke looked out over the view of a 50%+ rise in home values in three (3) years and exclaimed: "Again, I think we unlikely to see growth being derailed by the housing market."
Ya' think??

In June '06: the Fed staff reports: "We have not seen - and don't expect - a broad deterioration in mortgage credit quality."
Geithner chimed in: "We see a pretty healthy adjustment process under way...The world economy still looks pretty robust to us."
Continuing, Dim Tim, offered up this crystal ball gem: "Our recent financial-market data don't, in my view, provide a convincing case for a substantial increase in the probability of a much weaker path for growth going forward."

In Dec. '06, on the cusp of a sharp rise in mortgage defaults, Bernanke opined: "Like most people around the table, I think that a soft landing with growth a bit below potential in the short run looks like the most likely scenario."

Ladies and Gentlemen, I give you your United States Economic Dream Team!!