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Is Janet Yellen's Optimism Waning?
More observations that will be obviously ignored by the mainstream media. Not much to comment here. Quant momos and underwater PMs will take this, and soon run the market to dot com levels: after all every speculating portfolio manager's job is worth about 10,000 mere mortal equivalents (of the "producing stuff" variety).
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Jesus, this tottering old yenta never gets tired of the sound of her own voice and a free chicken lunch.
Can someone please just put her in an astronaut pamper and sit her in the corner.
Put her in prison w/ rest of the fed and government scoundrels. Guantanamo at that!
+1
fyi, "astronaut pampers" are off-the-shelf depends, so they're more fitting for her than you might think.
One thing for sure, Janet does not know about her waning. She did not write this speach. There must be one person in the FRS writing everyone's speaches. They all read exactly alike.
+1
I believe it's overcapacity added to the economy during the crazed bubble years rather than slack, i.e., industrial capacity was 15-20% greater than was necessary. Factor in the equipment and materials required to wage the wars in Iraq and Afghanistan and things get really bleak. Barring another, larger war, I cannot comprehend how that extra production can or will return to the economy.
"Once you eliminate the impossible, whatever remains, however improbable, must be the truth". (Attrib A.C. Doyle)
Once the revolution comes, will this beast be executed. Those of us in the Bay Area, sincerely hope so.
We're making a nice LONG list--checking it twice!!
Hope you folks in Elsewhereville are doing la meme chose.
See you on the other side of Blood River!!
Oh my bro, it will be so sweet! Diane, Nancy, Barbara, and a list of weak-kneed liberals that will only sweeten the pot. I think the left should be aware that during the revolution, they will have to side with their perverted statist buddies. There are no half-measures on the sanguine fields of the flesh. Flense-on my by friends!
She needs to be thrown into the meat grinder along with all the rest of the fed dead heads.
Someone tattoo this to her forehead.
More minitrue pronouncements.
Janet could have made a shorter speech.
U.S. recovery cannot happen without California. Largest GDP generator of the 50 States.
California's nonfarm employment has just sunk to the level of 10 years ago. All of the employment gains of the economic expansion are GONE !!
See www.doctorhousingbubble.com
This statement from Yellen struck me as odd:
"An increase in saving should ultimately support the economy’s capacity to produce and grow by channeling resources from consumption to investment."
Maybe I am missing something, but where are investment dollars going to go? Excess capacity utilization means investments aren't likely to be made in PP&E. ISM data shows inventory replenishment doesn't seem very robust. Maybe the creation of new businesses? Technology?
What if those savings do not turn into investments and instead remained stored in order to repair damaged balance sheets? Or what if they go into more liquid investments like stocks, bonds, etc?
What am I missing?
Cut her some slack killer...
In the first sentence of her report she said she admitted she was spending a lot of time trying to understand the markets and economy.
Clearly she admits she knows nothing about either.
Check out the BEA's stats on industrial investment... practically non-existant right now.
The Cavalry is not coming to the rescue this time. Enjoy your stay at Little Bighorn Mr. Custer.
It's hard to understand economics when you counterfiet all your money. You just tend to miss out on what it's all about.
The Feds reputation for tightening policy at the appropriate time is pretty poor. I expect lots of boo boo's and uh oh's when it's time to adjust interest rates.
Who the hell told them they get to decide what the value of money is anyway? I expect that they won't have this luxury in the future, perhaps near future.
Can you imagine any truthful politicians real speech?
Let me write it (ahem)
My fellow Americans. We are well and truly fucked. Have a nice day!
She needs to get on board with this rally. Liz Ann Sonders (Schwab) was on CNBC saying that we've seen multiple expansion in the past 6 mos. and now the 'E' in P/E will start to increase measurably. She said this economy/market is a coiled spring.
Schwab = boiler room. Saunders = ABJ with equally bad hair and too much sun. Perhaps ZH can lodge a FOI request for any conversation between the Fed and the major long only money management firms specifically Fidelity and T Rowe. Surely the Fed realized that the perpetual inflows/cashflow into 401K is simply a tax by another name. herefore it makes perfect sense that the Fed would lean on this lever to buy stocks "for the long term."
The Fed's ONE and ONLY mission appears to be to pump up the Dow and sacrifice the dollar. Higher stock prices will in turn 'generate' very 'strong' paper profits for higher renumeration and bonuses on Wall Street.
A good strong healthy dose of inflation will 'reflate' home values which are currently underwater and enable currently insolvent banks to maintain the illusion of solvency based on the 'true' value of their 'underpriced assets' on their books.
Savers, of course, will be bending over and taking it in the rear end.
Still think your dollars will 'retain' its value ?
Whats the value of your dollar, when the stocks of bankrupt companies on the Dow can be 'trading at $5 or $20' ???
Take comfort in the fact that China, Japan and other countries which enjoy 'big dollar and US treasury reserves' are unable to extricate themselves.
nah, all i had to do was scan this and it was plain to see that she is just talking things up as usual. She admits now that we have barely saved a financial system that had a date with death, but since so much money has been pumped in the system death was averted. But it was only a few months ago that bernake was screaming at some event that a another great drepression was not even in the cards. One deny's when all hell is breaking loose, so that the other can come and admit the same thing that was being denied a few months ago so that they may look like they are in control of the system, but really all they are doing is watching the markets and hoping to see the opposite continue forever when we all know that the charade has to end at some point. What we need to do is protect our fellow man from the kind that would sweep in and take advantage of his stupidity. Fight for each other because most other things are a waste of a good fight.
http://theautomaticearth.blogspot.com/2009/09/september-11-2009-through-...
I find the feds way of thinking funny. with an ever dropping curreny, and commodities being a global product. I fail to see how ever growing demand from emerging market economies commodity prices will not increase (in an ever falling currency) and that we will have inflation. Maybe the fed doesn't consider falling currency and global price stability to equal inflation, but I do.
the other thing that kills me is that we have 30 years of inflation and I year of deflation and these folks scream like crazy.
Can we please grown beyond the idea that we need to have a recovery to have inflation. this is not the case and something that is stated in the media over and over again. the 70's showed us that isn't the case. argentina shows this isn't the case, post ww1 germany shows this isn't the case, Iceland (current) shows this isn't the case, the baltics and ukraine show this isn't the case, zimbawae shows this isn't the case. How many exceptions to a rule are required to say that a rule isn't true
Dear Janet,
It's Chartered Financial Analysts, not Certified Financial Analysts. Good luck at Free Rimjobs Bank of San Francisco.
I love the way she refers to a level of inflation mandated for price stability. Errr, you mean a level of inflation mandated for price growth stability, aka, rape the peons.
"sales of US-made semiconductors are up"
HAL-9000 needed some more nodes to handle the volume on FNM, AIG, C, etc.
So she admits that the economy has been manipulated to the extent that our children must be informed as to the deductions already in place for their first paychecks. That does not include taxes assessed between now and then.
And to our Grandchildren, we leave a much lower quality of life, a confiscatory tax on every facet of their lives, and government that has corrupted itself to the point where its founders would no longer recognize it.