The Fed Has Lost It; Publishes Essay Bashing Bloggers, Tells General Public To Broadly Ignore Those Without An Econ PhD

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Mon, 06/28/2010 - 08:37 | 438139 Wynn
Wynn's picture

Thank you Dr. Durden

Mon, 06/28/2010 - 09:25 | 438265 mephisto
mephisto's picture

Taking 7 years between a BSc and a PhD - including 6 months as a junior lunch collection monkey at Citibank - does indeed suggest that economics is hard. At least for Kartik.

Mon, 06/28/2010 - 10:54 | 438533 Fish Gone Bad
Fish Gone Bad's picture

There are people in life that find their calling, and are very very good at it.  Take Kobe Bryant, an absolutely brilliant basketball player who knew what he wanted to do at an early age and polished his craft.  I have worked around dozens and dozens of medical professionals and I can honestly say that there are less than a handful who live and breathe medicine.  For some it seems it is all they can do just to make it through the day.  Our gentleman here appears to be from the latter category.  Economics is a flawed calling, just like religious studies - Trying to answer the question of what happens after one dies?  So much time has been wasted on a glorified snipe hunt. 

Mon, 07/05/2010 - 17:34 | 453463 brushfire
brushfire's picture

not sure what you're trying to say about medicine here. care to clarify?

with respect to Athreya's verbal diarrhea, the comparison to oncology research is intellectually dishonest at best. bench cancer research deals in facts, to the extent that facts exist. economics is better compared to psychology, which is a field populated by crazy people trying to work out their own issues (with exceptions, of course). perhaps we should dispense with the medical analogies altogether and compare economics to meteorology, which is the only other field in which you can be wrong nearly half the time and still qualify as an expert.

Mon, 06/28/2010 - 11:22 | 438654 WaterWings
WaterWings's picture

Santelli responds: "Stop spending! Stop spending! Stop spending! STOP SPENDING!"

Mon, 06/28/2010 - 09:17 | 438242 EB
EB's picture

Which is why we can rely only on experienced Fed economists to tell us like it is, such as this navel gazing speech by a NY Fed VP on the causes of the credit panic, which fails to mention the money supply, but does manage to reference the meat supply.  No, really.

Mon, 06/28/2010 - 11:11 | 438592 akak
akak's picture

Next thing you know, the political establishment will be telling us that politics is too "complex" and "difficult" for the average person to understand, and the ability to chose our leaders is too "important" to be left in the hands of the man on the street, and would be much better concentrated in a small cabal of unelected, unaccountable elites who are much more "qualified" and "educated" to make such decisions than Joe Six-Pack.

(Well, in fact that IS how things work in reality already, but at least they still pretend that it is not the case, unlike the economic decisions of our central banking oligarchy.)

Mon, 06/28/2010 - 16:56 | 439719 Cathartes Aura
Cathartes Aura's picture

I like your post akak. . .

once upon a time only the High Priests of Religion had access to "texts" that, once "interpreted," shaped the cultures. . . the printing press began a process of breaking down that monopoly of "unelected, unaccountable elites" who aspire to make all the decisions for their "flocks". . . amusing, but also profoundly sad that there are still those who seek worship for their "special knowledge".

Mon, 06/28/2010 - 17:59 | 439837 StychoKiller
StychoKiller's picture

[quote]

In his new book, In Search of Self-Governance, Rasmussen explains, In the clique that
revolves around Washington, DC, and Wall Street, our treasured heritage has been
diminished almost beyond recognition. In that world, some see self-governance as
little more than allowing voters to choose which of two politicians will rule
over them
. Others in that elite environment are even more brazen and see
self-governance as a problem to be overcome.
[/quote]

How can one be surprised when those in power have such attitudes?

Mon, 06/28/2010 - 08:37 | 438140 doomandbloom
doomandbloom's picture

when i was young, my mom asked me not to get into too much debt and to always spend my money carefully....

little did i know then that she did not have a Phd.....how stupid of me to trust her..!

Mon, 06/28/2010 - 09:08 | 438209 Sudden Debt
Sudden Debt's picture

You can still make up for it and sell everything you've got and buy bonds ;)

Mon, 06/28/2010 - 09:56 | 438330 MarketTruth
MarketTruth's picture

Agree, never get into too much debt, BUT THE FED wants banksters to have 100% debt and ZERO reseves(!).

 

"Given the very high level of reserve balances currently in the banking system, the Federal Reserve has ample time to consider the best long-run framework for policy implementation. The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system" -- Federal Reserve February 10, 2010

www.federalreserve.gov/newsevents/testimony/bernanke20100210a.htm#fn9

PS: And remember, Bernanke during very recent CONngressional questioning he told them he had no idea (per se) why gold is doing so well. The lies are getting thicker by the day as the Fed is trapped with their back against the wall. Like any trapped animal, they will do ANYTHING to break out/free to survive.

Short dollar, long gold imho.

PPS: Some REMINDERS about Bernanke and his wisdom, who as you know is the head of the Federal Reserve:

www.youtube.com/watch?v=7rmbiuEDKJU

www.youtube.com/watch?v=qj7ju-TV8bg

Mon, 06/28/2010 - 13:43 | 439178 Rusty_Shackleford
Rusty_Shackleford's picture

Bingo.  Will second both of these videos.  They are all you need to know about Fed economists.

 

www.youtube.com/watch?v=7rmbiuEDKJU

www.youtube.com/watch?v=qj7ju-TV8bg

Mon, 06/28/2010 - 14:43 | 439278 Dicite justitiam
Dicite justitiam's picture

Rusty, I get your point, but...these videos are not entirely relevant.  In fact, one of them is not even accurate.

The first video is decent.  I liked Eckman's revelation of BSB's emotional betrayal from his expression.  However, feeling scorn and anger in that situation is not surprising.  My gut tells me BSB was prevaricating in the clips that were shown.  But that's a big part of his job, to deceive those that wish to know the intention of the Fed.  I'm not saying BSB is all unicorns, ponies, and rainbows.  I'm not saying I <3 the Fed.  I don't.  But this video did not much inform me.

The second video was factually misleading.  BSB said that 'many foreign banks are short the dollar'.  The video is dramatically interrupted: "LIE.  There is no shortage of the dollar."  We shouldn't condone hysteria and ignorance like this.

I don't care much for the essayist, I don't care much for the Fed, but propagating these videos as essential source material does little to enhance the credibility of ZH.

Mon, 06/28/2010 - 10:42 | 438492 MrTrader
MrTrader's picture

Please define "not too much debt". Is this a) 50 % of your anual income after taxes, b) 25 % of our absolute savings, c) 65 % of your monthly disposable income ????

Mon, 06/28/2010 - 10:55 | 438541 A Nanny Moose
A Nanny Moose's picture

"Neither a borrower nor a lender be"

ZERO sounds fine to me, but this is a personal matter, in the end, of Risk vs. Reward.

Mon, 06/28/2010 - 18:14 | 439859 goldfreak
goldfreak's picture

that's great doom!

Mon, 06/28/2010 - 08:52 | 438143 Leo Kolivakis
Leo Kolivakis's picture

"I work as a rank-and-file PhD economist operating within a central banking system. I have contributed no earth-shaking ideas to Economics and work fundamentally as a worker bee chipping away with known tools at portions of larger problems."

LOL, this is where I stopped reading...what nonsense! The problem with some economists is that they start believing their gibberish and do not acknowledge the fraudulent foundations of their "scientific" methods. A little more humility will do this guy a lot of good.

Mon, 06/28/2010 - 08:58 | 438178 Catullus
Catullus's picture

I'm Ron burgundy. I'm kind of a big deal. I have many leather bound books and my apartment smells of rich mahogany.

Mon, 06/28/2010 - 13:44 | 439181 Rusty_Shackleford
Rusty_Shackleford's picture

Ha!

Mon, 06/28/2010 - 09:12 | 438224 fajensen
fajensen's picture

My sisters husband is an economist. He ranted all the way up from 2000 to 2008 on how it was better to borrow money against their home than earning them based on some long-winded arguments; He went quit er when he got sacked the first time and totally silent after 2009.

The whip teaches.

Mon, 06/28/2010 - 10:25 | 438445 inflation.stude...
inflation.studentloan--0's picture

I agree that the whip teaches, but she works in the public sector.  So the only place she's seen a whip is at the office parties.

Tue, 06/29/2010 - 08:25 | 440993 Trundle
Trundle's picture

Then the entire state of California is a Ph.D. economist.

Mon, 06/28/2010 - 08:41 | 438146 Racer
Racer's picture

And I suppose we are supposed to listen to someone who said 'sub-prime is well contained' when it most definitely was not.

Mon, 06/28/2010 - 09:10 | 438218 Sudden Debt
Sudden Debt's picture

They've right so many times but never noticed the light at the end of the tunnel was a raging train :)

Mon, 06/28/2010 - 08:43 | 438148 demsco
demsco's picture

Stop questioning our power and expertise, damn it! We are the ones who have successfully maintained order within the financial system... oh wait, never mind.

Mon, 06/28/2010 - 10:48 | 438504 akak
akak's picture

Tiny Timmy Geithner does not have a PhD in economics (only a masters, the horror!), and Obomba has NO degree in economics at all --- does this mean that we can safely disregard anything that either of them have to say regarding the economy?

Mon, 06/28/2010 - 11:25 | 438670 WaterWings
WaterWings's picture

Yeah, Timmay can't handle his own tax preparation even though he is head of the IRS and Hussein keeps violating the Constitution because he's a Constitutional expert.

We're in trouble.

Mon, 06/28/2010 - 08:44 | 438149 HelluvaEngineer
HelluvaEngineer's picture

Hmmm...I'm gonna go out on a limb and guess this wasn't a co-op student.

Mon, 06/28/2010 - 08:44 | 438151 Tipo anónimo
Tipo anónimo's picture

He saw the emperor w/o clothes.  That would be enough to explain anyone's intoxicated mid-day ramblings.

Mon, 06/28/2010 - 08:44 | 438152 Hansel
Hansel's picture

Open-minded people should ignore everyone without a PhD?  Whatever.

Mon, 06/28/2010 - 10:03 | 438380 FEDbuster
FEDbuster's picture

Wash your blue pills down with this kool aid and go back sleep.

Mon, 06/28/2010 - 13:02 | 439008 Paul E. Math
Paul E. Math's picture

That was the line that jumped out at me too.  With double-speak like that, Kartik can teach Greenspan and Bernanke some new tricks!

Mon, 06/28/2010 - 13:17 | 439073 Cistercian
Cistercian's picture

 The appeal to credentialism was hilarious.The whole paper was an epic fail.

  To say his abilities are marginal is to give him far more credit than he deserves.

 Pay no attention to the man behind the curtain, Economics is hard.

 FAIL

Mon, 06/28/2010 - 13:40 | 439169 akak
akak's picture

Fully agree, although it hardly even really needs to be said.

I picture him saying it like George Bush would have, in a whiny, petulant tone: "This economics stuff is hawrd!"

Mon, 06/28/2010 - 08:48 | 438154 LoneStarHog
LoneStarHog's picture

Examples Of Top Inventors/Researchers With NO Degree!

 

> Preston Tucker

> Vivien Thomas

> Robert Kearns

> Temple Grandin

> Orville & Wilber Wright

 

Just five of thousands who with NO DEGREE proved to those WITH DEGREES how things SHOULD be done.

Shut Down The Damn Federal Reserve And Use Its So-Called Economists For Speed Bumps!

Mon, 06/28/2010 - 10:44 | 438495 johngaltfla
johngaltfla's picture

>Bill Gates

Mon, 06/28/2010 - 13:15 | 439062 Bendromeda Strain
Bendromeda Strain's picture

> Dean Kamen

Mon, 06/28/2010 - 18:56 | 439938 LowProfile
LowProfile's picture

Thomas Edison

Nicola Tesla

Mon, 06/28/2010 - 08:48 | 438155 Djirk
Djirk's picture

Yeah they have done a bang up job of preventing market bubbles and smoothing out the economic cycles since their creation. Hmm 1929 great depression was 16 years after the Fed creation?

When I was in economics you would get thrown out of class if you did not agree with the premise that markets were rational. Anyone who has spent time on a trading floor with all the snot nosed money lovers knows that fear, greed and envy rule the markets.

Whoa Tyler, I got thrown out of my Phd studies can you lighten up on the math problems for comments?

Mon, 06/28/2010 - 08:49 | 438156 LMAO
LMAO's picture

 

Yet another fine example of how the FED redefines the word "Research" to suit their own purposes.

 

LMAO

Mon, 06/28/2010 - 08:51 | 438158 TheClub55
TheClub55's picture

Wow just anther example of our tax dollars being wasted away by stupid governmental employees... she really instills zero confidence in the Fed (not that I had any to start w/).  I am betting if forced to work in the private sector and forced to actually do something "productive" her wage would be somewhere in the neighborhood of $7 per hr plus tips.

Mon, 06/28/2010 - 09:05 | 438196 Pinky
Pinky's picture

The Federal Reserve IS in the private sector. It's not a government agency, it's privately owned. I thought everyone who reads ZH knew that. Guess not?

and . . . "she?"

Mon, 06/28/2010 - 09:58 | 438369 MarketTruth
MarketTruth's picture

Exactly, and here is a list of the PRIVATE PEOPLE/MEMEBERS who own the Federal Reserve:

www.save-a-patriot.org/files/view/whofed.html

Mon, 06/28/2010 - 10:12 | 438412 FEDbuster
FEDbuster's picture

The research on FED ownership needs updating.  I would like to see the names and ownership interests as of 2010. 

My understanding is member banks own the FED and the largest members own the controling interest.  I would think the CEOs of the six major US banks have the most to say about extracting wealth from America and bailing out their broke ass banks.

Mon, 06/28/2010 - 11:43 | 438738 MarketTruth
MarketTruth's picture

Agreed it probably needs some updating, yet it is not like one can simply ask the Fed who are the actual owners. Still, the above link provides some insight.

Mon, 06/28/2010 - 13:45 | 439189 Cathartes Aura
Cathartes Aura's picture

+10, and a *grin*.

Mon, 06/28/2010 - 08:52 | 438159 grunk
grunk's picture

His CV:

http://www.richmondfed.org/research/economists/bios/pdfs/athreya_cv.pd

 

 

You think he uses these lines to pick up a woman in a bar?

Mon, 06/28/2010 - 09:14 | 438231 Sudden Debt
Sudden Debt's picture

I'd sure like to read one of her papers :)

“Unsecured Debt with Public Insurance: From Bad to Worse”, joint with N. Simpson Journal of Monetary Economics, 53 (2006)

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