Sanityandsense.com is an informational website with a large portion of our articles designed to help individuals understand complex economic issues. Sanityandsense.com’s mission is to present complex topics in an understandable manner. In this article, our site quotes famous and powerful individuals and allows you to decide just how smart the “experts” are in their judgements.
The following is a quote from Richard Band. He is best known as the editor of the PROFITABLE INVESTING LETTER. The quote was made on March/27/2008. ” A very powerful and durable rally is in the works…” REALITY: The Dow Jones Industrial Average went from 12,300 on the day of the quote to 8,500 by the end of the year. Mr. Band failed to see a 4,000 point drop in the DJIA.
The following is a quote from Bijan Moazami, a noted financial analyst. The quote date was May/9/2008. ” AIG could have huge gains in the second quarter…” REALITY: AIG lost $ 5 Billion IN THE SECOND QUARTER OF 2008, AND LOST A WHOPPING $ 25 BILLION in the 3rd. quarter.
The following is a quote from U.S. Representative Barney Frank ( D, Mass ) who was head of the House Financial Services Committee. On July 14, 2008, Frank stated: ” I think this is a case where Fannie Mae and Freddie Mac are fundamentally sound. They are not in danger of going under…” REALITY: These two giants were forced into conservator ships and were Nationalized. The total costs to the taxpayers may be as high as $ 5 TRILLION due to direct and indirect losses. Recently the SEC brought civil charges against the management of each of these giants. Republican Presidential candidate Newt Gingrich received over $ 1.6 Million from Freddie Mac for purposes that remain unclear.
The following is a quote from Bernie Madoff made on October 20, 2007. ” In today’s regulatory environment, it is virtually impossible to violate rules.” REALITY: Bernie is in jail for stealing $ 50 BILLION in a Ponzi scheme that will live forever in infamy. Also, the U.S. Securities and Exchange Commission failed to investigate Mr. Madoff even though financial analysts repeatedly warned the U.S. SEC that Madoff’s numbers were not possible.
The Chairman of the Federal Reserve System , Dr. Ben Bernanke, stated on February 28, 2008 : ” I expect there will be some failures… I don’t anticipate any serious problems… ” REALITY: The failures were massive and the total cost to American taxpayers remains in question. Washington Mutual became the largest financial institution in history to fail. Other institutions were only able to avoid failure because President George W. Bush (43) used massive amounts of taxpayer money to save them. Actually the historical accounts show that President Bush (43) directed Hank Paulson and Ben Bernanke to “put something together” and take it to Congress. They did and individuals inside institutions that lost billions and billions of dollars immediately used some of their TARP money to give bonuses to incompetent employees.
Sanityandsense.com will continue to work to bring important information to all of the people. You can count on Sanityandsense.com to present factual and accurate information in 2012 and beyond. Sanityandsense.com has earned the trust of tens of thousands of people throughout the world. We plan to continue our high standards throughout 2012, which has the potential to be a year of financial turmoil throughout Europe, Asia, and the rest of the world.
R. Van Conoley