Ben Bernanke's Greatest Challenge

Fed Chairman Discusses Recession, Financial Rescues And Recovery In Wide-Ranging 60 Minutes Interview

(CBS)  Bernanke helped pay for college working construction and working at "South of the Border" - the future chairman of the Fed wore a poncho and waited tables.

Asked what he learned about work, Bernanke said, "Work is hard, that in order to feed your family and to give your kids opportunities you, it's not an easy thing."

Back in the marble confines of the Federal Reserve, Bernanke told Pelley he understands that many Americans are afraid.

"I've been kicking around the country. I spoke to a woman in Ohio, who took her son out of college, because she got laid off. I spoke to a woman in Nevada, who has an advanced stage of cancer. And she was told by her county hospital that they couldn't treat her because a hole had been blown in the state budget. What do you say to those people?" Pelley asked.

"Well, I got into economics, because I wanted to make things better for the average person. When I see a job loss number, 650,000, like we saw last month, I know that's not just a number. That's 650,000 lives that have been disrupted. Families that have had to move or take children out of school. Houses that may be in danger of foreclosure. I know something about what people are going through," Bernanke said.

And that makes it all the more outrageous when he hears of financial firms handing out perks and bonuses after they've taken bailout money. "The era of this high living, this is over now. And that they need to be responsible and use the money constructively," he said.

"And you would say what to those bankers right now in this interview?" Pelley asked.

"I'd say that their job right now is to find a way to make loans to creditworthy borrowers, to get their banks back on the path of making good loans, safe loans, and to have a reasonable sense of humility based on, you know, what's happened in the last 18 months," he replied.

We asked Bernanke what it's been like at the office the last 18 months, with his staff working 80-hour weeks.

"I noticed when we were in your office. You have a couch in there. You [have] been sleeping on that couch?" Pelley asked.

"Once in a while," Bernanke said. "And sometimes, it goes through the weekend. Sometimes it goes overnight."

The Federal Reserve is the life blood of the banking system. Its 12 regional banks are clearing houses for commercial banks.

One of the vaults associated with the Reserve Bank is in New York. Robots carry cash in the vault that's as big as a football field and four stories high. Each pallet, loaded with $100 bills, is worth $64 million. The Fed has 22,000 employees. It clears your checks and your ATM withdrawals. And it provides economic forecasts.

But one of its most important responsibilities is regulating the nation's biggest banks, to be the watchdog.

"You're supposed to keep them out of trouble. So, how did all this happen?" Pelley asked.

"Well, a lot of mistakes got made. No question about it. But, you know, this was a much bigger thing than any single firm or any single individual," Bernanke replied. "Over the last dozen years or so, enormous amounts of savings has flowed into the United States, and some other industrial countries. That savings has come from China and East Asia. It's come from oil producers. And hundreds of billions of dollars, it has come into our financial system. And, you know, that would be great if we took that money and invested it wisely, and got a high return. But instead, our financial system didn't do a good job. We had a regulatory system that was like a sandcastle on the beach. When you had little small waves just lapping up against the sand castle, everything looked good. But when you had a big breaker come in, suddenly the system wasn't strong enough to deal with it."

[AbdulGB]

Typo:
...but Ben Bernanke had never done an interview until he sad (sat) down with....

[mark1190david]

Your interview with Mr. Ben Bernanke was my last resort in dealing with Washington Mutual since it gave me a "brain storm" to go on the Federral Reserve web site to file a complaint, and they provided an intermediary on my behalf since I was spinning my wheels, and literally getting nowhere. In fact, I am passing this information along to other people. Thanks, 60 Minutes.

[Hunter5326]

He (Bernanke) is a traitor,bought and sold!
The Same people who killed Kennedy in 1963 are still in control,and Americans are "dumbed down" to the point of stupidity by the lap dog news media!!

I fear it is too late for us all!

[TriciaLMurphy]

Several years ago (2000?) Ben Bernanke and a bus full of Federal Employees were given a tour of Gettysburg, PA, by Tricia L. Murphy, a Gettysburg Licensed Battlefield Guide. During the two-hour tour she mentioned that her recent historical research suggested there would be a massive global depression between the years 2005 and 2008. In less than 60 Seconds the battlefield guide briefly illustrated historical aspects of the economy and what may happen in the near future if the trends continued.

Ben Bernanke disagreed with her theory and dismissed the idea. Tricia L. Murphy posed this question to Bernanke and the Federal Employees regarding the possibility of a future severe recession ? ?What if I am right? What steps can The Federal Government take NOW to prevent an economic melt down of the US and Global Economy? The hero will be the person who can come up with a strong well thought out economic plan to head off a global recession.?

Ben Bernanke and Tricia L. Murphy concluded the tour with a friendly wager - lunch in 8 years ? for the person who was correct.

Mr. Ben Bernanke, at your convenience, you may buy me that lunch?

Tricia L. Murphy,
Unemployed former
Gettysburg Licensed Battlefield Guide
[e-mail]

PS ? The reports of my death have been greatly exaggerated.

[TriciaLMurphy]

Several years ago (2000?) Ben Bernanke and a bus full of Federal Employees were given a tour of Gettysburg, PA, by Tricia L. Murphy, a Gettysburg Licensed Battlefield Guide. During the two-hour tour she mentioned that her recent historical research suggested there would be a massive global depression between the years 2005 and 2008. In less than 60 Seconds the battlefield guide briefly illustrated historical aspects of the economy and what may happen in the near future if the trends continued.

Ben Bernanke disagreed with her theory and dismissed the idea. Tricia L. Murphy posed this question to Bernanke and the Federal Employees regarding the possibility of a future severe recession ? ?What if I am right? What steps can The Federal Government take NOW to prevent an economic melt down of the US and Global Economy? The hero will be the person who can come up with a strong well thought out economic plan to head off a global recession.?

Ben Bernanke and Tricia L. Murphy concluded the tour with a friendly wager - lunch in 8 years ? for the person who was correct.

Mr. Ben Bernanke, at your convenience, you may buy me that lunch?

Tricia L. Murphy,
Unemployed former
Gettysburg Licensed Battlefield Guide
[e-mail]

PS ? The reports of my death are greatly exaggerated.

[RobertEdwardKroff]

Its not a theory, it's a fact. The term is "rowing the economy." A short row is 10 years and a long row is 20 years. The idea is to coordinate the end of the row stroke on a year ending in 7. Catherine Austin Fitts has spoke about this for years now. Read up on her stuff - its a trip!

[cool1207]

It's very simple, bad decision has bad results, keep making bad decision, will have bad results. If AIG keep making bad business decision, will fail. Fed tried to save US bank system end up to encourage them do wrong without pay. So, has to have better way, that's private ownership or let company fail, failing forward, you can't encourage the child with bad behavior. In U.S., we don't have real famine(food shortage) but we do have politician famine.

[RobertEdwardKroff]

I tried several times to send my email cut & pasted below to [e-mail] . However I get a bounce each and every time, so I am posting it here. My personal information is not of any concern to me being displayed on your site.


Dear, 60 Minutes Staff

I asked on the phone a few days back about Ben Bernanke?s 60 minutes interview comments- "Over the last dozen years or so, enormous amounts of savings has flowed into the United States, and some other industrial countries. That savings has come from China and East Asia. It's come from oil producers. And hundreds of billions of dollars, it has come into our financial system. And, you know, that would be great if we took that money and invested it wisely, and got a high return. But instead, our financial system didn't do a good job. We had a regulatory system that was like a sandcastle on the beach. When you had little small waves just lapping up against the sand castle, everything looked good. But when you had a big breaker come in, suddenly the system wasn't strong enough to deal with it."


You never asked Ben Bernanke for example if ARAMCO is a depositor in the FED, and if so, how much ARAMCO has deposited in the FED approximately, and other entities like it. This is interesting to me because I am writing an objective style nonfiction book on the subject of the most likely depositors in the Federal Reserve: how it all works within the petrodollar recycling system, and so forth :how the west would be much different without such a macro economic dynamic.

How I got started on this topic is when my uncle sometime ago, who is a retired executive from the Saudi state owned oil company, told me this> He said, "ARAMCO is the largest depositor in the FED, and dwarfs the American Government's stake in the bank. No other depositor holds a candle to the Saudi's deposits in the FED." He also said, "Without first producers (energy companies) demanding the currency they trade their product in, the currency we all use each and everyday, would thus have no upstream demand. Without this pull upstream for currency the Federal Reserve Notes the FED issues to the public would be rendered worthless." He also said to me, "Note, taxes and energy paid in what ever is demanded at the final point upstream is money."

I would like to lay it all out in my book, but I lack first quotable sources to do this. So if possible I ask, "Can you please give me access to other parts of Ben Bernanke's interview I may use in my book that did not make the final cut?" This if any such material was even made. Specifically being any material that I could use related to the topic I have described needed for first source documentation which I need for my book outlined within this email.

Sincerely, Robert Edward Kroff
Phone:[phone]
6432 SW Inlet Ave. Lincoln City, OR 97367

[Biggest_Fan]

My neighbor burned his house down smoking in bed, so I took out a loan and built him a new house, then I gave him a bonus for burning his old house down. Now I don't have enough money to send my kids to college. Can Bernanke help me?

[robjr100]

What a lame interview.Why wasn`t Bernanke asked why the Federal Reserve is NOT a part of the government? Why is it run by a bunch of international bankers that answer to no one? Why wasn`t Ron Paul`s bill for total transparity brought up?

These big bankers are big time crooks as it looks like they own Washington DC.

Senator Dick Durbin of Illinois says the "bankers frankly own the place"(the senate) as his bill to save 1.7 million americans their homes.
http://mgx.com/blogs/2009/05/02/olbermann-senate-backs-bankers-over-homeowners/

Check out former bank regulator William Black on Bill Moyers as he explains the flim flam game run on the United States that get`s zero air play on the mainstream media.
http://www.youtube.com/watch?v=Rz1b__MdtHY&feature=channel_page

[brdr4ev]

I am simply appalled at the interview in which I viewed Sunday, And the overall untruths that were aired. The Federal Reserve and Bernanke should not be in charge of our Money supply. The Constitution did not allow for this and questions should have been asked to the unconstitutionality of the supposed Federal Reserve and how it came into existence in the First Place.
This is just typical Main Stream Medias attempt to cover up what is really on the Plate. Let everyone Know the truth heh! . What A Joke. I tell you what you should be covering is Ron Paul's H.R. 1207 and the medias attempt to not let the American People to make concise intellectual decisions . That is why we have a tyrannical Government in place today, that is turning our Great Republic into a supposed Democracy. You keep your Change and I will keep my Mind.