Global Crisis   Blog

Bernanke Needs Eyeglasses:  He Cannot See Bubbles

By Shlomo Maital

Nov. 19/09

         “It is inherently EXTRAORDINARILY difficult to know whether an asset’s price is in line with its fundamental value”.

                                    Fed Chair Ben Bernanke,  in a speech given on Monday Nov. 15/09 

    When the Master of the Universe, the distinguished Princeton University Professor , expert on the Great Depression and the person who controls the fate of every one of the 6.8 billion people on the planet (through controlling the value of the US dollar)  says, he CANNOT tell whether there is an asset bubble or not…    well, every one of us has cause to worry.

      Professor Bernanke,   looking at the diagram below, showing the median US house price divided by median income,   is there anything in the diagram that gives you a slight clue that America was in the midst of an enormous housing bubble?   ANYTHING????

      Prof. Bernanke, I know a terrific optometrist.  He can prescribe new eyeglasses for you. You need them urgently.   Because if you cannot see the old bubble,  that means you will not see the next one either.  And that means, all of us are in deep hot water. 

 Housing Bubble

Housing Bubble