An Open Letter to Ben Bernanke

Dear Ben:

Congratulations on your re-appointment as Chairman of the Federal Reserve. I’m sure that as the President pondered your re-appointment, he took last year’s “Looking into the Abyss” (a CNBC quote), and decided you were the man for the job. However, he probably disregarded:

1) Most banks may be insolvent.*

2) 81 banks have failed this year, and the number continues to climb each week. (Some say as many as 1000 over the next 18 months)*

3) Disregarding the S& L crisis, this is the worst bank failure since the Great Depression.*

4) Trade, as measured by shipping and rail, is down 20%.*

5) Foreclosures are not only rising, but accelerating.*

6) One-third of all mortgages are under water.*

7) Unemployment is rising, as real unemployment approaches 20%.*

8) The Federal Reserve continues to buy treasuries, thus monetizing the debt.*

9) Sales are non-existent, except for government giveaways. (How about cash for old washing machines?!)

10) The federal budget deficit just went from $7 trillion to $9 trillion.*

Ben, keep up the good work. I can’t wait to see what you have in store for the next four years. You are definitely the man for the job.

Sincerely,

Bill Tatro


*Source: Bloomberg


>>>>>>>>>>>>>>>>>>>>>

A disclaimer: None of the content published on BillTatro.com constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the content published as part of BillTatro.com may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.