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Ben Bernake and Congress Got It Totally Wrong – What Else Is New

May 22, 2010

This is Congress and Ben Bernake telling America that the housing market is strong in 2005 when the hedge fund managers and money managers were screaming at the top of their lungs that there was a housing bubble that was going to bring down the economy. What Congress and Bernake did was allow banks to shore up their balance sheets at the expense of the general public.

Now banks are holding onto real estate and waiting for real estate prices to go back up and creating an artificially high market even now so that they do not sell at reduced rates so more people are being foreclosed, more people cannot buy a house because housing prices are being kept high because banks are keeping the assets on their books because the American people bailed out the banks and the banks kept the money rather than extending credit like they were supposed to.

According to the FDIC – if Banks go under America has 99 years to pay back the insured money — really. What’s the choice right now – worthless money in the mattress?

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