Ben Bernanke is hardly god - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 3 September 2013
Ben Bernanke is hardly god A  A  A

Baltimore, Maryland

When we left town on Friday, trading was as slow as the traffic on the interstates. Labor Day is the last holiday of the summer season. No one wants to miss it.

In lackluster action, the Dow fell 30 points on Friday. Gold, however, dropped $16...putting it once again below $1,400.

But that is history. That is summer history. And now we're in the "R" months. September. October. November. December. We had our crabs. Now is the time for eating oysters...and having a good, old fashioned market crash.

Not that we're predicting it. But we have our black-and-blue "Crash Alert" sign up anyway. As a warning.

Yes, dear reader, a lot can go wrong this autumn. And you should be prepared for it. If it doesn't happen, thankful. Because at some point this whole monetary system is going to come crashing down. For most people, it's not going to be much fun. Savings will be lost. Businesses will go bust. Debtors will default. Stocks and bonds will plummet. And those are the good things.

If you've been reading these Diary messages you know why already. A stream of income - either from a stock or a bond - is a promise. The value of it depends on how much you trust the promisor and his money. That is the problem. As much as we like Ben Bernanke as a human being, we find grave fault in him as a god. Only a god could know more than the sum of all the knowledge held by all people who are active in the world economy. Only a god could select an interest rate better than the one they select for themselves. And only a god-awful economist could claim to do such a thing with a straight face.

-------------------------- Top 3 Dividend-Paying Small-Caps to Buy in this market crash... -------------------------

The current market crash has left many investors looking for fixed income opportunities.

Now we both know that no stock investment can ever guarantee a fixed return...

However, we do have 3 'Rare' Small Caps which have paid regular dividends to their investors for many years now... In fact, one of these has paid dividends consistently for more than 100 years!

So, investing in these 3 stocks today could give you a two-fold benefit over the years to come... i.e. regular dividend pay-outs PLUS the intrinsic growth-potential that lies in strong small caps.

How can you get Instant Access to full information on these 3 stock picks right away?

Click here for full details...


The galling thing is that he may be able to keep the whole shebang going for many years more. Instead of seeing the mighty Ben humbled and fallen, we might have to put up with this for a lot longer, seeing journalists and economists suck up to him, flatter him, and act as though he knew what the hell he was doing.

But heck...we're in the R months. And anything could happen. Congress will soon bump its head on the debt ceiling; that's always good for a few laughs. Speculators are running up margin accounts again -- just like it was 2007.

Syria and Egypt are in the headlines today. Iran or Venezuela or Argentina could be in tomorrow's news.

Often, the headlines are just an excuse for something to happen that was going to happen anyway - one way or another. Things that have to happen sooner or later nevertheless need a reason to happen sometime. But the real trend needs no 'reason' at all. It just happens.

Trust increases...and then people take advantage of it. They speculate on stocks...counting on the feds to protect them from their own bad trades. They go on 'disability'...counting on other people to pay their living expenses. They move to Washington and become lobbyists...counting on the fool politicians to send the taxpayers' money in their direction.

The great tower of trust was built up over many, many years -- by people who worked hard, honored their commitments, paid their bills and made sure their money was solid. But, then...with so many people burrowing into it from all becomes unstable. Untrustworthy.

Then, an R month comes...and watch out!

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Get The Daily Reckoning directly
in your mail box.
Just enter your e-mail address » 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "Ben Bernanke is hardly god". Click here!


Recent Articles:
Trump Takes a Beating
August 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Which Gods Will Bring Down the US Empire?
August 17, 2017
Mr Trump is in the White House and the gods are in their heavens; what's not to like?
Will They Haul Off Trump's Statue, Too?
August 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Farm Loan Waivers: Why Bad Economics Makes for Good Politics
August 14, 2017
It is because the negative effects of the waivers aren't clearly visible.