Ben Bernanke's Bad Analogy to Save The Banks

[LetMeFlyinPeace]

according to bernanke, the house that started the fire is more important then every other house that might burn down

[Gunnarssonsgate]

Isn't FED owned by bankers? Of course FED protects them! Who benefited from the FEDs QE? I guess it was the finance institutions. Wasn't FED created to protect banks in the first place? That's how the system is ruled.

[MaudsPas]

The bailouts are the water that you use to put the fire out.

It's Republican/clinton deregulation that started the fire.

[mintoo2cool]

fed does not give the money .... it "loans" it ... we are not giving AIG 165 million ... we are loaning it

[uturniaphobic]

2 + 2 = scewed

think! AIG loses its ass on CDSs to Goldman Sach and the other croanies...

All of a sudden everyone MUST get healthcare

and well lookie there! AIG works in insurance ...HEEEEELLLOOOoooOO!???

5*s!

also healthcare will likely = RFID chips for all

run folks!

[sesshoumaru3st]

cenk doesn't get the analogy.Listen, the house are the banks and the man in the house represents the bank owners.the fire is the financial crisis and the water is the solution to put out those crisis.Ben Bernanke said that allowing the banks to raise capital of 75BILLION will put the banks in a position to start leading again.THE WATER IS THE MONEY that's how you save the banks,and large and small businesses.More importantly, that's how you stop the crisis(the fire).I expected more from cenk.

[hawadlah]

The fed chair have to save the failing bank (in this analogy the burning house) because of the people and the organizations that deal with the bank not because of the people who run the bank to the ground. Also the fed chair doesn't have the power to fire the bank executives who failed at their job, congress and the president administration who have that power.

[RageagainstRacism]

The error you're making in this video is saying: "We dont need to protect the banks, we need to protect the financial institution"

You cannot do both. In order to protect the financial institution, we need to protect the banks. You are correct, however, in saying that we do not need to protect the CEO's. But, since there were contracts already made, the banks had to abide by them.

Not a good situation but it is the situation with which we find ourselves.

[TraderGoneGreen]

The difference is they should be protecting the People, not the banks or "the economy".

The Financials are 1/3 the economy anyways and they create nothing. One day you guys will see it...

[RageagainstRacism]

that is like saying that housewives dont contribute to the economy. Sure they dont make a widget, but that is not relevant. if we had no banks we would have a very unstable and inefficient system... Banks provide a great deal to the economy, go back to school.

[Relugus]

Bernanke used the term "jobless growth". Hey, Ben, in the real world, growth is when you have jobs. What Ben means, of course, is growth in the banks is the only thing that matters to him.

Hank Paulson and Lloyd Blankfein are the reasons Lehman Brothers was allowed to fall.

[sobal79]

fed is private so he cares for privat intrest - so everyone are - save the world save the cherlider.

[myfanniejigglesaboot]

good job guy

[lipoicacid]

He forgot the part about the fire being deliberately set.

[LApk01]

I'm gay

[CrawlingChaos]

It's not exactly the same now as it was then; when a bank failed then, everyone worried about their own money and there was a bank run, causing more banks to fail. The FDIC was created to prevent this from happening again.

[CrawlingChaos]

Banks don't print money; the U.S. Treasury Department does.

[lipoicacid]

No.The Federal Reserve does.The Treasury then borrows from them.

[andreyoso]

What an Idiot... Things would lots worse if AIG were allowed to fail... provide solution do no criticize..

[MustacheVerra]

Totally agree with the YoungTurk here.

Man, you're gonna have to change your ways if you want to make it in the mainstream media! ;)

[jameswillingham1]

every TYT video i watch is this guy talkin down on someone. in this case he doesnt know shit about economics so he should probably keep his mouth shut

[CrawlingChaos]

Okay, since you are thus well-versed in economic theory and practice, what is the correct approach and why?

[jameswillingham1]

i dont know much about economics, but im smart enough to be able to tell this guy doesnt either, and while im not an economist i know what is right and what is wrong, and taking peoples tax money and giving it to someone else is wrong.

[OddEye83]

Bernanke is certainly not an Alan Greenspan, I simply don't trust his judgment

[pretorious700]

And you trusted Greenspan? Are you nuts?

[kotan333]

I agree with vernlaw and Fred. I also dont see why people complain about the AIG bonuses. Companies have to pay their workers.

Ironically it could even be argued that AIG didn't pay there workers enough to attract talent. You have to have pretty bad traders and risk managers to rack up a couple hundred billion in trading losses.

[llcasanova]

I agree with you but dude we need to nationalize the banks. We cant afford to let them fail but at least let us call the shot since they already fucked up.

[jameswillingham1]

ur an idiot

[vernlaw]

I don't agree with cenk. The thing is we tried to let a big bank go under with lehman. It can be argued that this was the start of the financial collapse. After that we had to step up in a huge way. With the FDIC getting involved, major lending and capitalising to overt a currency collapse. AIG, boa and Citi are much larger than Lehman. If one of them went under, we would be gone. Thank god we have people that are willing to do whats necissary. I like cenk though, he's just not an economist.

[Fred13B]

Best way to put out the fires, IMO?

Install a fire-control system, consisting of RULES that would prevent such foolish deals from ever occurring again.

[friscokitten]

Um... you call Bernanke's analogy stupid... and then perpetuate the stupidity? I would suggest learning more about the details before speaking out on these sorts of things, otherwise you invalidate your message. I think I understand what you were trying to say but you obviously don't have even the most remedial understanding of what you are trying to apply these asinine metaphors to.

Don't get me wrong. Bernanke's a moron.

[Dewdaahman]

:::smoking in bed::: we outlaw all items that will start fires.. :::gun control::: we outlaw everything that could cause death to another..

This insanity MUST stop before we end up outlawing humanity..

[Dewdaahman]

Pre-Glass-Steagall Act did the US Banks need saving..? you broke it, you fix it.. if you drop a vase worth $150.00 in a vase store does the owner collect from each customer ,in the store at the time, their portion of the cost of the vase..?

[rollsthepaul]

The reason for the bonuses is because these guys are "unreplaceable". We have cemetaries full of people, that couldn't be replaced. What burns my ass, other than a flame 3' high, is claiming that those that caused the mess are the only ones that can solve the mess. The Fed calls the shots and The Fed is not controlled by the government. On the contrary, he who controls the supply of money, controls the government. Obama and the Legislative branch are the ranters but Benanke is calm and cool.

[Brandt761]

Words of wisdom from Cenk...

[Blac13]

Its a good analogy, the bailout is the water to put out the fire. Unless you want to pay more to put out more fires.

[BrightWave]

Actually, the people who started the fire are the same motherfuckers who never lifted one finger to deregulate them: The fucking Government.

[orientrat]

I though it was a great analogy

[ELBORRACHO86]

Then u one dumb faggot

[johnny718bravo]

Let them Burn

[beeohhski]

if you didnt allow smoking in the first place nothing would happen

[Landaren]

@beeohhski Glad you missed the point

[bemaniac2]

actually - his analogy is REALLY good! I totally disagree with TYT for the first time...

[PartIrishKevo]

Same here, it's actually a good analogy.

[SuperluminalStudios]

Did you listen to the whole video or did you just read the title and comment on that?

It is a good analogy, but it has a flaw, which Cenk explains. Watch again, then comment.

[Paetaor]

You think they don't get it?

They benefit the most from chaos. More power, more control.

[genghis6l99]

it's like they're laughing at the public

[fatmoleman]

The "Federal" Reserve is enemy #1.

[pretorious700]

Bernanke doesn't get it. He just doesn't fucking get it.

It's called megalomania.

[catherineweiwei]

Bankers ARE the fire. Put them out already

[pongman]

Let Wall St. collapse! We don't need Wall St. All we need is new Federal Banks to give out loans to people and small businesses. Fuck AIG, the Federal Reserve, and the rest of them. They should all be shot in the head, thrown in a federal prison, and tarred and feathered. Time for the people of the United States to revolt and send Wall St. a real message.

[WhiteBull]

Yeah and my fucking house burns down and all of my friends houses burn down and the one who started the fire gets the millions and we are standing in the fucking street knowing we just got fucked in the ass...for fuck sakes!!!!

[goonsmile]

the banks more than hit their annual targets this year with the bailout so its bonuses as usual

[ItzMeRon]

WTF is Ben talking about?!?!?!?!?!?!?! That is the worst analogy I have ever heard and understood. Ben Bernake needs to be fired and replaced with Ron Paul.

[ddean1987]

I don't believe Ron Paul would take the position considering he wants to completely shut down the Federal Reserve but I see where you're coming from.

[ItzMeRon]

Thank you. You are right about my Ron Paul idea.

[jxsilicon9]

I build a moat around my house and let my neighbor's house burn.

[qwerty7546]

$165mln/80000 bailout money= 0,2%

AIG expenses 2008= 220billion

So the bonuses of 165mln = 0,075% of expenses - just to keep the most important people still in the company, so that they don't leave and bring the company down.

[pakratmak]

Following his analogy-fireproofing the house means ending the Federal Reserve.

[moulingalette]

Cenk is right like usual.

[bubburubb]

Can you explain how the failure of Citi would affect derivitives? How many CDS's are out on Citi and would have to be paid off if they folded? Who would have to pay and do they have the capital to do so? Would the bankruptcy of Citi set off more bankruptcies, causin a domino effect

I'm not defending Bernanke's position, I just want to see if anybody has any idea of the consequences of such actions. I think decisions should be informed ones and the answer to these questions need to be known.

[ScoundrelLB]

wow, 'informed decisions'...that's a pretty novel concept in our soundbite society. i sure hope it catches on.

[DJMight]

Better thing to do in that analogy is to let the guy die in the fire for being a retard.

Then spend $150+ million to celebrate his death.

[qanazir]

I still think it would be better to pour money into infastructure and industry than to give money to the failed banks.

[Colombianqtric]

Edward Liddy, chief executive of bailed out insurer AIG, will tell Congress today that he found the company's controversial bonuses "distasteful," but necessary, CNNMoney reports.

[yuukisama2001]

Oh that was so funny Cenk, 1:25. These guys are jokes. I guess school didn't do them any good either. After all they never felt they'd need it once they got big. These guys make me sick.

[DillonX]

Cenk -- right again!

If we can't get the bonuses back, then we need to have the names of those who received the bonuses & the amounts received PUBLISHED FOR ALL THE WORLD TO SEE so it's plainly revealed who the scumballs are!

[hypnofan35]

The guys who are in charge of the rip off are the same people who are "proffering" the solution. Of course they are going to make a 3 ring clown show. They are saying "everybody look that way, look over here, and look over there, something is happening, look there." While they walk off with aws da money. How many of these guys signed up to go to a fako war that they knew with ever fiber of their being was a fake? GeorgeWad and company pulled off 911.  They know that.

[hypnofan35]

Reward them with a chain gang life. That way they could still be working together. Bernake has not proved himself in any way like these othe fellows unless it is to concentrate the wealth with the rich at the expense of everyone else. Send them to the Taliban zoologiical gardents.

[hypnofan35]

Think of it like a monlithic hierarchy, where every level of status is on board and everyone will commit any kind of crime of aggression or collusion to defend their level and their hierarchy. This is why the pope is completely corrupt, worthless and meaningless, except for the belief in blah blah and cash. Why do people blast away at one another? Status factors!

[ndyt]

And what about the people that have already fire-proofed their houses? I have no confidence in Bernanke. He has never said anything that makes him sound anything but stupid. He is like Palin in any interview.

[cynisturb]

A better analogy would be:

The neighbor swore up and down that he didn't smoke. When the fire started, he claimed the smoke was just steam. Meantime, burns down the houses on the rest of the block, blames the people that lived in them, and blames them for his house catching fire. Everybody on the block loses their house except him. He gets 165M to rebuild the block. He takes that money and saves it for his retirement and then asks for more money to rebuild just his house. cont...

[cynisturb]

But, he then says that everyone else that lived on the block are SOL and won't get to move back in or get any insurance money because he owns the insurance company and needs the money to fix his house even though he just got millions. According to him, its their own fault they can't afford to fix their houses on their own.

[kapaka12]

dumbest analogy ever...... this guy is a big-shot economist with a PhD in economics....... these people give higher degrees a very, very bad reputation...

[darktoadthesticky]

The banks own the government.

[billybobhobnob101]

You need money lenders, just not those money lenders, with two Trillion dollars the government should of just created their own Banking institutions- they really only need to give three types of loans- small business, mortgages, and auto loans- let the rest of the system crumble and the pieces get bought up- as the economy recovers the government can sell their loans to whatever financial institutions remain or have been created.

[sunnyallthetime]

I'm reminded by this that no one was fired for letting 9/11 happen either.

[Promatheos]

We didn't start the fire. It was always burning since the world's been turning.

[konnigkratz]

Beat me to it :P

[ddamico3]

wait isn't capitalism about taking advantage of bad businesses mistakes? this is blatant communism, fascism, socialism, etc. in your faces. wake up. reclaim your sight. the shell game rolls on. late.