Bernanke: Obama plan not enough

Mr. Bernanke is either lying or ignorant of the facts, as well as being a hypocrite. He warned “that much more regulatory supervision is necessary 'to limit the probability and severity of future crises' in the financial sector” and states “it is unacceptable that large firms that the government is now compelled to support to preserve financial stability were among the greatest risk-takers during the boom period." The fact is that government intervention, through the rules and regulations imposed on banks, is what lead to this entire crisis. Has he not heard of the Community Reinvestment Act, Fannie Mae and Freddie Mac?? Here are the facts from an article from “The Center for Individual Freedom” published online December 22, 2008 at http://tommydavis.wordpress.com/2008/12/22/get-out-of-jail-free/ ---------- Congress forced financial institutions to make bad loans and also empowered Fannie Mae and Freddie Mac to buy those bad loans. In fact, for a while, the more loans Fannie and Freddie bought, the more money they made. So Fannie and Freddie leaned on financial institutions to make even more bad loans. Lenders in turn – with the free market hopelessly compromised - engaged in risky speculation. And liberals in Congress - pockets stuffed with contributions from nervous lending institutions - turned a blind eye. ---------- As for hypocracy, consider this: Mr. Bernanke is the chairman of the Federal Reserve, which wields enormous power over the U.S. economy and is under NO direct U.S. government oversight whatsoever and is accountable to no U.S. government agency or department, contrary to popular belief. It is particularly disconcerting that Mr. Bernanke suggests nationalizing private industries and sticking the citizens of this country with huge bailout costs because of the disastrous effects of previous government meddling and misdirection.

"Mr. Bernanke said it will not be enough unless financial institutions are made sound." ************** They will never be sound until the criminals in these institutions are rooted out one by one and destroyed.