A Friend Like Ben

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Ben, most people turn away

Not hear a word they say

Do not see how I do

I wish they would attempt to

I'm sure we could think again

If he had a friend like Ben.

From the song: Ben

Copyright 1972 Walter Scharf / Don Black

Performed by Michael Jackson

Bella, not words, right? The melody, though the song is very nice as well. The irony, of course, that> Michael Jackson sings this beautiful song of a mouse. That's right, a big, hairy, dirty, ugly (and aggressive) rat! The song is the theme music for the film with the same name.

The "Ben" I want to talk about, but it is Ben Bernanke, chairman of the Federal Reserve Board. He is not a rat. On the contrary, but I do not know him personally, it radiates, appearance, integrity and professionalism.

The bulls on Wall Street, but cansee it as a mouse. Unlike Alan Greenspan, l '(bow to bow, too) to political pressure after 11 September and aggressively cut the Fed funds rate to support the financial markets panic, Bernanke is for the most part, with the its dry powder to determine if the recent turmoil in the subprime mortgage mess and is in fact a threat to the global economy.

Greenspan's policies have, in fact, help to minimize buoy a market which is sinking, and reduce the recession of 2001-2002,just time for the tech bubble, which will be replaced by a housing bubble. The latter was the bladder, it seems, is almost exclusively a function of historically low prices, brought to us from Mr. Greenspan. E 'was also the source of the subprime mortgage fiasco and predatory lending practices that enable people with questionable credit, property or could not afford them, or turn their existing homes, as the' use of piggy banks' the seemingly endless shopping sprees. InInterim Report, aroused great increase in their taxes, lender, and the economy is booming, as people spent and spent and spent. All the while knowing that the creditor would be (and the defendant must know) that a day of reckoning awaits, one day, the teaser will revert to the mortgage interest. Those days are now upon us, and almost everyone, it seems, from the sub-prime borrowers to lenders, hedge fund managers want Bernanke, Greenspan's successor to bail them out. So far, even if underincredible pressure from the Bush administration and said the company and consumer groups, it appears that Bernanke may be willing to play ball.

Bernanke, you see, just does not seem to understand that the Fed, as a bulwark against the stupidity of consumers and the greed and irresponsibility of the economy. 30 August was revised GDP in the second quarter to 4.1% upwards. The robust growth of the economy suggests. Unless the sub-prime situation hascomplete inversion of one (there are only data for one or the other on this point, as the left), an official of the Federal Reserve would certainly be in the wisdom of reducing prices in an increasingly economic engine. Interestingly, many of the leaders to "talk" the economy tell us that the economy remains strong and the envy of the world, while at the same time, desperately Bernanke urged easier. Why? If you are convinced that the recession is in us?Maybe a few. But most economists tell us that we should expect a growth (slower growth, but growth in each case) until the end of 2008.

No, I think the agenda is behind these calls to arms much more narrow and transparent. Concern for marginal homeowners on Main Street by the highly compensated people on Wall Street is issued touching, to be sure. But what's really driving this train is that the centers of economic power and political capitalMarkets saved from his excesses. He wants to continue the bull market for his meteoric rise earlier, and they want to escape the financial services industry for the consequences of mismanagement and greed. Substantial reductions will probably reach the right results, but also trigger a further collapse of the U.S. dollar and, if the economy really sound as if the underlying numbers suggest, such a move risks of overheating and to report on what the Feddetest above all for inflation.

Bernanke is to resist, but the jury is still out whether you can take the pressure. What is at stake is not only the potential danger of too accommodative Fed mentioned above, the role of Bernanke as chairman of an organization seemingly independent from political powers will be put to the test.

Thus, for the Bulls, the question is, is Ben, a friend or advice? Only time will tell.

Warren R. Graham

Copyright 2007