There really should have been no doubt about this before, but there...

There really should have been no doubt about this before, but there was and by someone whose opinion I highly respect as well. Just two days ago this person asked 'Mish, what's your gripe with Bernanke?'Bernanke Gripe List BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? There really should have been no doubt about this before, but there was and by someone whose opinion I highly respect as well. Just two days ago this person asked 'Mish, what's your gripe with Bernanke?' I think a policy of positive inflation is a policy of blatant theft that benefits those with first access to the money (banks and the wealthy) to the detriment of everyone else. Of course the big market participants like what he has done. Bailing out the markets on options expiry open.... What's not to like about that? Taking risky collateral and being willing to roll it over forever.... What's not to like about that? (For more on this topic please see The private sector and Congress should create new, affordable mortgage products that would help some homeowners refinance their mortgages and keep their homes, Federal Reserve Chairman Ben Bernanke suggested in a letter released Wednesday. In the letter to Sen. Charles Schumer, D-N. Y., Bernanke repeated that the Fed is closely monitoring markets and stands ready to act if needed. The Fed issued a statement with almost identical wording on Aug. 17 after it cut the discount lending rate to 5.75%. The letter from Bernanke was dated Aug. 27 and released by Schumer's office on Wednesday. 'It might be worth considering at this juncture whether the private and public sectors, separately or in collaboration, could help the situation by developing a broader range of mortgage products which are appropriate for low-and moderate-income borrowers, including those seeking to refinance,' Bernanke wrote. 'Such products could be designed to avoid or mitigate the risk of payment shock and to be more transparent with respect to their terms,' Bernanke wrote. 'They might also contain features to improve affordability, such as variable maturities or shared-appreciation provisions for example.' Congress is considering legislation that would reform the Federal Housing Administration, which is a federal agency that provides mortgages to low-income buyers. FHA loans have been largely supplanted by subprime lending from the private-sector. But FHA loans, with tighter lending standards and less onerous terms, have not defaulted at the rates recently seen in subprime loans. ' Bernanke proves he is a complete fool. Once again we see he is totally incapable of distinguishing the problem from the solution. That is why he is wrong about the great depression and that is why he is wrong again now. The cause of the great depression was an enormous expansion of money supply and credit leading up to the economic collapse. Bernanke insists the solution was more monetary stimulus by the Fed. He is completely misguided. He is now repeating the same mistake. The Housing bubble was created by too loose monetary policy by the Fed in conjunction with Congressional meddling. worth considering at this juncture whether the private and public sectors, separately or in collaboration, could help the situation by developing a broader range of mortgage products which are appropriate for low-and moderate-income borrowers, including those seeking to refinance. The Fed and this Congress and that general attitude are the problem not the solution. Every passing day, more and more government intervention is piled on top of government intervention on top of government intervention all in an effort to correct what went wrong with the last government intervention. No one ever bothers to figure out that it was the original government intervention that created the original problem. The 'Original Sin' in this case goes way back, all the way to 1913 when Congress created the Fed. With that in mind, it should be perfectly clear what the problem and the solution is. It's time to abolish the Fed and restore fiscal and monetary sanity with money backed by hard assets such as gold. Ron Paul will do just that. The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.