Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Time Magazine's Kiss of Death to You!

Politics / Central Banks Dec 17, 2009 - 01:17 AM GMT

By: Mike_Shedlock

Politics

Best Financial Markets Analysis ArticleBernanke is probably pleased to be name Time Magazine Person of the Year 2009.

The story of the year was a weak economy that could have been much, much weaker. How the mild-mannered man who runs the Federal Reserve prevented an economic catastrophe.


Professor Bernanke of Princeton was a leading scholar of the Great Depression. He knew how the passive Fed of the 1930s helped create the calamity — through its stubborn refusal to expand the money supply and its tragic lack of imagination and experimentation. Chairman Bernanke of Washington was determined not to be the Fed chairman who presided over Depression 2.0.

So when turbulence in U.S. housing markets metastasized into the worst global financial crisis in more than 75 years, he conjured up trillions of new dollars and blasted them into the economy; engineered massive public rescues of failing private companies; ratcheted down interest rates to zero; lent to mutual funds, hedge funds, foreign banks, investment banks, manufacturers, insurers and other borrowers who had never dreamed of receiving Fed cash; jump-started stalled credit markets in everything from car loans to corporate paper; revolutionized housing finance with a breathtaking shopping spree for mortgage bonds; blew up the Fed's balance sheet to three times its previous size; and generally transformed the staid arena of central banking into a stage for desperate improvisation.

He didn't just reshape U.S. monetary policy; he led an effort to save the world economy.

Time Magazine Nonsense

Time Magazine is wrong of course. Bernanke did not save the world. Moreover Bernanke is a poor student of the great depression. He understands neither the cause nor the cure of depressions. It is equally clear Time Magazine doesn't either.

One does not cure a depression by throwing more money at it it, when the cause was the runup of money supply and credit in the first place.

In Praise Of Time

Bernanke is no doubt pleased to be on the cover, and I am pleased he is there as well. Bernanke is a fitting choice in a long line of fitting choices at Time.

I openly praise Time Magazine as a useful contrarian indicator.

That Bernanke is on the cover of Time Magazine means one thing "Bernanke's Time Is Limited" He is on his way out. And that is good news.

Ringing The Bell

My friend "HB" writes:

Appearing on the cover of Time as person of the year is like a bell ringing. It almost always is akin to a figurative death sentence for the person involved, and sometimes even a literal one.

  • Jeff Bezos made the cover in 1999 - the year the internet portion of the tech stock bubble topped out.
  • GW Bush made the cover as his popularity rating had just begun to slide, ending at the worst such rating since Nixon, concurrent with a stock market crash.
  • Hitler made the cover in 1938.
  • General Chiang Kai Chek in 1937. It turned out to be an ill omen, career-wise.
  • Stalin made the cover in 1939 and again in 1942.
  • Kennedy made the cover the year before he was assassinated, as did Martin Luther King - a literal death sentence in both cases.
  • Lyndon B. Johnson made the cover in 1964 - he was about to lead the country into the Vietnam catastrophe.
  • Nixon and Kissinger made it in 1972.
  • It was Yury Andropov's turn in 1983 - he died shortly thereafter.
  • Gorbachov became 'man of the decade' half a year before being forced to step down.
  • Obama's turn was last year.
  • Most worrisome however, in 2006 Time decided to write on its person-of-the-year cover 'You!'.

It is amazing in hindsight how Stalin and his brutal murderous regime of forcible collectivization was actually widely admired in the West during his lifetime.

Time is these days only a hair to the right of Marx, which is in marked contrast to the stance the magazine espoused vis-a-vis FDR and the new deal in the 1930's.

Back then Time was quite conscious of the failure of these policies - something its modern day editors seem to have completely forgotten and replaced with some post facto glorification of FDR.

YOU!

"Most worrisome however, in 2006 Time decided to write on its person-of-the-year cover 'You!'"

Indeed what a warning: "You!" In retrospect it should have been perfectly clear. Boomers were heading into retirement, flush with cash, jobs plentiful, feelin' good ... well you know the rest.

Today it is widely known that "You" is not generally in good shape.

Yet, the warning was right there on the cover. "You" was headed for deep, deep trouble. Few heeded the warning.

Gaga Over Real Estate

Although not a "person of the year" edition, please consider the June 2005 Time cover.

Not only did Time Magazine proclaim right on the cover "Why we're going gaga over real estate", Time followed it up with the even more ominous "You!".

I used the "Home $weet Home" cover to proclaim a top in housing. I hit it on the nose.

Flashback Monday, April 10, 2006: US vs. Japan Land Prices Pictorial Update.

Please see Collapse Of The "Ownership Society" for where we are now.

The Peak of Central Banking?

Kevin Depew was right on time as usual in Time on Bernanke: The Peak of Central Banking?

“This probably represents a peak in the importance of central banking. If you scan the list of Time magazine’s "Person of the Year" awards and pay attention to the timing, they almost universally represent a culminating event in the lives of the people or abstract ideas selected. This isn't because there is something flawed with Time's selection process; it's simply the case that by the time something is deemed universally important enough to be selected it has reached a natural point of exhaustion.”

A Good Omen

Bernanke being on the cover of Time Magazine is arguably a good omen, a time for hope.

Once again please consider my final thoughts in Fed's Exit Strategy: Stephen Roach vs. Mish

We need a plan and a timeline to put the world on a sound economic system because the current Bretton Woods II, fractional reserve, US dollar reserve currency hegemony is about to blow sky high.

The quicker this blows up, the quicker we can recover. And knowing what we know about Time Magazine, Central Banking will blow up sooner rather than later. Moreover, Bernanke will not be part of the solution, and that is a good thing.

I thank Time Magazine for the information and their kiss of death warning. However, I must also remind readers that Stalin made the cover twice, so immediate results just might be expecting too much.

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2009 Mike Shedlock, All Rights Reserved

Mike Shedlock Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules