Friday, September 26, 2008

A Few Good Assets

From the Banc Investment Daily (whatever the hell that is). The following is an exerpt of the actual speech from Ben Bernanke at his Congressional testimony:

"Senators, we live in a world that has bonds and bad construction loans and those assets need to be bought by men and women with balance sheets. Who's going to do it - you, Chairman Dodd? You, Senator Schumer?

I have a greater responsibility than you can’t possibly fathom. You weep for Bear Sterns and curse the banks just trying to get their collateral; you have that luxury. You have the luxury of not knowing what I know: that Lehman's bankruptcy, while tragic, probably saved firms. And that my existence, while grotesque and incomprehensible to you, saves markets.

You don't want the truth, because deep down in places you don't talk about at parties, you want me buying assets - you need me buying assets. We use words like “foreclosure,” “Discount Window” and “TARP.” We use them as the backbone of a life trying to defend something. You use them as a punch line.

I have neither the time nor the inclination to explain myself to a group of media hungry politicians who rise and sleep under the blanket of the very liquidity I provide and then question the manner in which I provide it. I would rather you just said "thank you," and went on your way. Otherwise, I suggest that you purchase a defaulted option arm and pay par.

Either way, I don't give a damn what you think the American taxpayer is entitled to."
Wow, he's quite the radical. This situation may call for a Code Red.

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