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The Fed's New Vice Chairman Janet Yellen Implies No Fed Rate Hike Until 2013

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Tue, 03/23/2010 - 16:07 | 273594 SteveNYC
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The cheap-money bubble to end all bubbles? Yellen=Bernanke=Yellen. A banker's BFF.

Tue, 03/23/2010 - 16:07 | 273595 Racer
Racer's picture

And what about the people who had savings? This is obscene... and you are forced into buying stocks because that is the only way they will allow you to make any money

Tue, 03/23/2010 - 17:00 | 273714 MarketTruth
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Forced to buy stock? There are ways to make money without huge counterparty rick or playing the Wall Street Las Vegas game.

You buy gold bullion.

Wed, 03/24/2010 - 09:02 | 274247 Popo
Popo's picture

Please look at a 50 year chart of gold prices.  Adjust it for inflation, and explain to me how you're not taking the biggest risk of all?

 

Oh wait, I know.. because the gold price suppression games simply can't continue much longer?   

Tue, 03/23/2010 - 16:09 | 273598 Racer
Racer's picture

Cheap money, come and get it, cheap money, here gamble it all, cheap money, we will give you more if you lose it... here cheap money.....

Tue, 03/23/2010 - 16:09 | 273600 trillion_dollar...
trillion_dollar_deficit's picture

ZIRP4EVA

Tue, 03/23/2010 - 16:30 | 273643 Rex Crotch
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That would make a bitchin' license plate.

Tue, 03/23/2010 - 16:11 | 273605 Blithering ORSA
Blithering ORSA's picture

If money is free, does it still remain a store of value?  That may well become an incresingly valid question...Debt disappears when you devalue the currency in which it is owned.

Tue, 03/23/2010 - 17:02 | 273717 MarketTruth
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Define money? If you mean USD, it has never been a true store of VALUE due to devaluation (also called inflation). Gold is a store of value.

Wed, 03/24/2010 - 09:03 | 274249 Popo
Popo's picture

Gold is a store of value?  It certainly isn't a very good one.  Please pull up the chart from 1950 to 2000 and show me how much "value" got stored in gold.

Tue, 03/23/2010 - 16:16 | 273618 rubearish10
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Life is Beautiful! This is certainly a "FREE" Country!

Tue, 03/23/2010 - 16:16 | 273619 bugs_
bugs_'s picture

The new disaster flick

"2013 - The Raising"

Tue, 03/23/2010 - 16:16 | 273620 I am a Man I am...
I am a Man I am Forty's picture

Money is only free if you are a banker.

Tue, 03/23/2010 - 16:18 | 273624 Mako
Mako's picture

The Fed rates will never be over 1% ever again in my lifetime.

Tue, 03/23/2010 - 23:37 | 274059 Votewithabullet
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 mako 1964 - 2011   rip

Tue, 03/23/2010 - 16:21 | 273629 Hondo
Hondo's picture

This is the same insane thinking that got us hear in the first place......nothing changes........corruption and stupidity are still running the Federal Reserve.........in congress that has always been the case.

Tue, 03/23/2010 - 16:28 | 273641 BlackBeard
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Welcome to Japan.

Tue, 03/23/2010 - 16:40 | 273670 InstantWinner
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Exactly Blackbeard.  Japan experience included stock collapse over 80%. Japanese business and government became one and the same.  Like GE and the Treasury.

Wed, 03/24/2010 - 09:05 | 274250 Popo
Popo's picture

+1 Blackbeard.

 

The lesson of Japan is that ZIRP has no correlation to equity prices over the long term.  Anyone who thinks 0% rates guarantee a perpetual upward trend is making a very, very big mistake.

Tue, 03/23/2010 - 16:41 | 273671 Jo
Jo's picture

Bitch should do the world a favour and cut her own throat.

Tue, 03/23/2010 - 16:45 | 273677 buzzsaw99
buzzsaw99's picture

She gives me a softie. :shudders:

Tue, 03/23/2010 - 16:48 | 273683 waterdog
waterdog's picture

How very sad, nonsense economic babble puked into the media punch bowl to try and save the democrats this fall.

Drink up democrats, the party will end in November.

 

 

Wed, 03/24/2010 - 09:06 | 274251 Popo
Popo's picture

Even sadder:  The notion that there will be a difference between Republicans and Democrats.

 

Both parties are squier boys to the banking oligopoly.

Tue, 03/23/2010 - 16:51 | 273689 crosey
crosey's picture

Keep feeding the financials until they explode!

http://www.youtube.com/watch?v=MlfcF1I5e_g

 

 

Tue, 03/23/2010 - 17:47 | 273789 thegreatjoghurt
thegreatjoghurt's picture

When you walk into a shop, the stuff they flog for a few cents is the stuff nobody wants. The cost of money is 0 for the chosen few. But it ultimately means that whatever is given away for nothing is worth exactly this, nothing.

 

Tue, 03/23/2010 - 17:47 | 273790 JR
JR's picture

It’s an incestuous pattern.  The Fed cartel’s got to have people who will take orders, i.e., the Janet Yellens.  These are critical times.  To have some independent thinker in there would be pretty dangerous.  Don’t you see?

Even Charlie McCarthy, Edgar Bergen’s dummy, had a mind of his own:  Bergen, why are you doing that?

It’s like you bring Yellen in, set her on your knee, and she says: “We’re going to keep the Fed funds rate at zero for three years!

Bernanke: Shhh, Janet.  Don’t say three years! Say until things improve!

Yellen: Three years.

Bernanke: No, Janet!  Just say until things improve.

Yellen: Until things improve!

Tue, 03/23/2010 - 18:10 | 273805 non-anon
non-anon's picture

I was thinking the same thing while watching Turbotax Timmiee

at today's "dog and pony show", DC is full of inbreeding whores!

Tue, 03/23/2010 - 18:04 | 273804 fuggetaboutit
fuggetaboutit's picture

2010 closing high for the dollar index today -- which is probably a positive sign for risk assets when viewed through the lens of the massive and growing deficit (excluding the pending contribution to the Greece Fund), the pending jump in taxes (note data released today shows sales tax % highest on record in 2009, and that ill take the over for 2010), the spike higher in housing inventory (reported housing inventory, that is) and all time record high fed balance sheet last quarter

Luckily the Vix is back where it was in October 2007 so the market is braced for any unforseen problems the surge in the dollar is contemplating

Tue, 03/23/2010 - 18:12 | 273807 rawsienna
rawsienna's picture

The huge transfer of wealth from savers to banks continues - along with the huge bonuses the bank's pay to their senior people for sitting around collecting carry.  Yellen is a dove and rates probably need to stay low for a while. But low may not be mean zero and Hoenig is correct in saying that the extended period language can help start and fuel bubbles (we are in one now).  Think the Fed will be setting the stage to remove the extended period language but not let the market think they are embarking on a protracted series of dramatic increases in s.t. rates. 

With respect to Yellon's Japan analogy. They were somewhat "lucky" in that they were the only G-7 country in deep shit.  This time, we have several. The outcomes may be very different. Also, as I have repeated several times, the FED may congratulate themselves and think the MBS purchase program was a success.  THat is no the key question. We will judge that if/when they decide to sell the asset class. I for one believe they made a mistake when the expanded it to 1250b from 500.  They should have bought less mtgs and more treasuries. Mtg spreads are very tight but I think the mtg rate is more important and I am pretty convinced that the rate would be LOWER and participation broader (although spread to Treasuries wider) if they bought both MBS and longer dated Treasuries. The proof will be when/if they sell.  Looking at negative 10 yr spreads tells me that I am correct. It is not a sign of health/ 

Tue, 03/23/2010 - 18:43 | 273835 JR
JR's picture

That’s brilliant.  When the “extended period language” is removed, the market will have Yellen’s easy money implication to remember and calm the fears of the bulls.

Tue, 03/23/2010 - 19:36 | 273885 rawsienna
rawsienna's picture

Yes - I think they want to get overnight rate up to around 75 -100  bp (pre "emergency "rate) and keep it there for a while  - However .... 

They are a bunch of wimps and still are scared from the 94 rate hike experience. 1994 gave us 2003/4 measured approach which created the "conundrum" .What the heck did idiot Greenspan would think happen when he told everybody "we will raise rates 25bp at a time because we dont want anyone to lose money". He killed volatility and gave huge incentive for people to use leverage to compensate for lack of spread/carry.  It is no coincidence that the subprime disaster started while the Fed was HIKING rates.  No way investors would have bought those bonds at such tight spreads with so much leverage if it was a normal rate hike process .  

Tue, 03/23/2010 - 18:17 | 273812 BlackBeard
BlackBeard's picture

If you guys think things were bad under Greenspan and are worse under Bernanke, then pray that this crazy dingbat never gets a chance to sit on the monetary throne.

Tue, 03/23/2010 - 18:27 | 273818 jimmyjames
jimmyjames's picture

This wont ease up credit markets and very little will ever end up in the economy--

This is how the banks are recapitalizing--

Borrow at zero buy up the long bonds-helping to subdue rates and live large on the spreads--

Bonuses all around-next x-mas--

Tue, 03/23/2010 - 19:13 | 273865 bugs_
bugs_'s picture

The Fed will cease to exist well before they can raise.

Tue, 03/23/2010 - 19:26 | 273879 fUny1
fUny1's picture

They pledge allegiance to the FIAT, one Global nation super stazi state, Under Weirmark's Weimar(t) Super Hyper Inflation store.

http://funy1.blogspot.com/2010/03/collapse-phase-ii-hyper-deflation.html

http://funy1.blogspot.com/2010/03/finite-irrationality-of-paper-wealth.html

 

That is until the FED after hours pump turns into the mother of all dumps.

 

http://funy1.blogspot.com/2010/03/american-investing-idles-beware-ides-o...

http://funy1.blogspot.com/2010/03/how-long-before-fed-after-hours-ponzi....

 

 

Tue, 03/23/2010 - 23:32 | 274057 knukles
knukles's picture

Shit.  This ain't funny any more.

Wed, 03/24/2010 - 07:43 | 274216 Grand Supercycle
Grand Supercycle's picture

 

USD index continues to get stronger, and we know what that means ...

http://www.zerohedge.com/forum/latest-market-outlook-0

Wed, 03/24/2010 - 08:59 | 274245 Popo
Popo's picture

Dow 100,000?  Why?  Because rates are low?  How'd that work out for Japan?

Wed, 04/14/2010 - 07:09 | 299623 mark456
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Wed, 04/14/2010 - 07:10 | 299624 mark456
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