Tuesday, January 31, 2006

We must be rid of moral midget government. Next Wash Times advert

Today's New York Times reported Bernanke's nomination to replace Greenspan at the Fed sailed through the senate without anyone paying attention. That's total nonsense. The K Streeters running the government on behalf of the corporations, the money center banks, and heaven knows who else wanted a 24/7 funny money printer to pump up profits at the expense of ordinary Americans enjoying affordable housing, education, etc.

How's this for a presidential aspirant? The NY Times reported "Senator McCain...had no idea that the Bernanke hearings had come and gone."

The powers-that-be got away with this rabbit trick by distracting the public with the Alito hearing. Enough to the right of the line to satisfy the social conservatives, he's a reliable "company man" so big biz has nothing to worry about.

In November, 2005 I met Senate Banking Committee staff chiefs, Kathleen Casey (GOP) and Steve Harris (DEM) about my wish to testify against Bernanke's nomination. Response: A polite "No way, Jose". After the meeting, sent the below letter.

November 27, 2005
Ms. Kathleen Casey
Mr. Steven Harris
Senate Banking Committee
Via fax

Dear Ms. Casey & Mr. Harris:

The attached article from today’s New York Times underscores how vital it is to have full scale hearing on Bernanke’s nomination. The economic numbers economists like Bernanke rely upon simply don’t reflect the financial realities of everyday life for most people. Bad data in. Bad data out.

As I mentioned at our meeting, the underlying economic problem for the middle class is the collapse of the buying power of earnings not the cost of fuel when denominated in housing, or private higher education, dollars for the period of 1955 to the present is at historic lows.

Compare the buying power the $41,000 earner who can’t heat his home cited in the article with my situation after finishing my psychiatry residency in 1973. Earned $30,000 as a service chief at the Cornell affiliated hospital and about another $15,000 in private practice. On that I maintained an office in Great Neck, a 2 bedroom modern duplex apartment on West 78th Street just off Central Park West, and rented a summer cottage on the water in the Hamptons.

Also according to today’s NY Times , there were only 10,000 Manhattan residential real estate transactions last year. (Brozan--”So Few Properties, So Many Brokers”) Just like fraudsters a la the movie “Boiler Room” cheating unwary investors by pumping and dumping thinly traded pink sheet stocks, non-conforming mortgages end up having the same effect in the real estate market. Might be worth a look-see at the real estate investment activities of the folks at the Treasury Department and the FDIC who regulate mortgage lending standards for the national banks and the savings and loan. Been a mystery to me why they don’t act to stabilize the housing market particularly since most of them have children who’ll need homes.


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