Records: Federal Reserve Officials Foresaw, Joked About Housing Bubble in 2006The clip includes anecdotes noting that already in 2006 Fed officials were aware of homebuilders being forced to offer large "incentives" (i.e., bribes) to try to get exhausted buyers to soak up the bubble supply, and engaging in open shams (some might say "fraud") to dupe potential buyers into thinking local housing conditions were more robust than they actually were. Indeed, by this time the phrase "Liar's Loans" had already made its way into the mainstream media vocabulary.
However, the U.S. government rarely speaks for itself any more when it comes to its own economy. When your lead talking-head on the economy is the mumbly, absurdly under-qualified tax-cheat, Tim Geithner; this is no great surprise. So where was the Script printed for the benefit of the ratings agency Choir, and the Wall Street Vampires; who used all that happy-talk to scam the world for $trillions? On the same Federal Reserve printing press which was/is cranking-out infinite quantities of U.S. greenbacks. The U.S. government ("World's Only Superpower") allows a cabal of private bankers to do most of its talking (and apparently most of its thinking) when it comes to running the U.S. economy. And the ringleader of that cabal (i.e. the head of that private corporation) is Benjamin Shalom Bernanke. So when S&P states that in 2007 "U.S. government officials . . . publicly stated" the subprime time-bomb "appeared to be contained"; the person it is pointing its finger at is B.S. Bernanke. Specifically, S&P was referring to B.S. Bernanke's notorious media-tour in 2007, when he would gleefully announce to anyone/everyone who pointed a microphone at him that the U.S. housing market was headed for "a soft landing," sending U.S. stock markets to then-record highs. So in fact, the ratings agency Choir was nothing more than B.S. Bernanke's back-up chorus. So here we have the U.S. government suing S&P (and only S&P) for parroting its own happy-talk. But it gets worse. While B.S. Bernanke was delighting listeners with his "soft-landing" predictions in 2007; it seems that he and the rest of the Federal Reserve cabal were saying something much different to each other . . . behind closed doors . . . in 2006, according to a clip recently put out by PBS titled: