Bernanke knows the housing market is still plummeting.

At the start of the economic crisis, Greenspan famously noted that there was no bottom until housing prices stabilized.  Greenspan's best pupil, Bernanke, is now telling us loud and clear that he heard Greenspan clearly but that all of his emergency efforts to stop the fall of housing prices have failed.  Of course, Bernanke will never tell the truth about anything because that would be contrary to the code of the con men.  Bernanke must verbalize his thoughts in "Fed Speak" which Greenspan defined as "a language of purposeful obfuscation".  In other words, con-man speak.

Today, after years of keeping interest rates near zero percent with no positive effect on housing prices, Bernanke is telling us that we must do more to prop up housing prices.  Thinking people will have to ask, why?  After all, by now all the speculators and flippers are pretty much wiped out and the majority of people who own homes own them as shelter, not as an investment.  Who in their right mind wants their housing value to increase just so the corrupt state governments can tax them annually on some arbitrary paper valuation?  If your house is your savings plan then you are a blithering idiot because government is taxing you on that plan far more quickly than it is increasing in value.  And with the shape that banks are in, don't expect valuations to climb anytime soon.

And so we get to the heart of the matter.  Propping up your housing value, including recent pledges to keep interest rates at rock bottom through 2014, isn't about you at all.  To imply that it is about you is just part of the con.  In truth, it's all about the dying banks.  They own your house, not you.  They hold the deed, not you.  Their ability to lend is directly affected by the value of their assets which includes your house.  As your house falls in value, banks increasingly hunker down trying to weather the storm instead of expanding their lending.  Why lend more money on assets that keep falling in value?  It's a situation that has, in the past, led to death spirals for banks.  Greenspan knew this which is why he knew that economic problems would continue until housing stabilized.  Bernanke knows it too. 

What neither of them will tell you is that propped up housing prices is a con game perpetrated by the scammers of fiat currency and fractional reserve lending.  If people had to pay cash for homes then they would cost 50% or maybe even 30% of today's prices.  Why?  Because buyers set the prices in the market, not sellers.  In an an economy infected by fiat currency and fractional reserve banking, people cannot afford to buy houses without becoming multi-decade debt slaves.  All that loose money running around out there drives up the price of everything.  Alternatively, if credit was not so readily available, people would save for 5 or 10 years and then buy something smaller outright.  Then, having no house payment, they would save up more money and then trade up.  We would all still end up with nice houses within a reasonable time period but this honest way of doing things cuts banks and elitist moneymen out of the something-for-nothing alchemy profit loop.  These are the people Bernanke is really trying to protect.  Anything that happens either for or to the common man on the street is just a consequence of supporting the money elite.

This will never change as long as we have a corrupt system that allows fiat currency and fractional reserve banking.  We need to end the Fed, return to honest, commodity money, and get real change in US politics.  That is not going to happen as long as Obama, Romney, Gingrich, Santorum or any of the other choices of the money elite are in charge.  We already saw that campaign promises mean zilch from these a$$holes.  They are all corrupt in their own special ways.  Only Ron Paul stands out as a man to be trusted and as a man with a multi decade record of true statemanship and public service.  The rest of them just want to cash in on the pain of the people.