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San Fran Fed's Janet Yellen Shares Some Misinformation On The Fed's "Credbility" And Other Topics
Warning: Watch the below video without prior ingestion of Xanax, lithium and/or horse tranquilizers at your own risk.
Grandma Janet sounds like an insane and/or senile bureaucrat who does not want to admit that she was one of the select cabal of monetary druids whose mistakes essentially destroyed the financial world a year ago... and their reaction to this destruction has made sure that the US economic system is now promptly heading either toward hyperdeflation or hyperinflation (likely both).
Nonetheless, some interesting quotes:
- On negative fund rates:
"[QE] is stimulating the flow of credit, but [it is] simply not as powerful levers as large rate cuts."
In other words, if Bernanke could charge savers 10% for keeping money in the bank, he would be first in line to do so. Can't have those pesky forward looking, prudent consumers spoil it for all those tens of millions who are deadbeat squatters in houses they will never get evicted from, as else Wells Fargo and BofA would have to mark their mortgage books down to fair value.
- On deflation:
"If the economy fails to recover soon, it is conceivable that this very low inflation could turn into outright deflation. Or still, it is conceivable that were inflation to intensify, we could find ourselves in a devastating spiral in which prices fall at an ever faster pace, and economic activity sinks more and more."
- On the (presumably flawed) concerns about hyperinflation:
"i) The Fed has pumped up the money supply and expanded its balance sheet to fund its rescue programs, potentially igniting inglation; ii) the Fed runs the risk of repeating the errors of the 1970s by focusing on mistaken view of economic slack, rather than rising prices; iii) huge fiscal budget deficits will create higher inflation.
- A little more on Hyperinflation:
"Nowadays hyperinflation only happens in 3rd world countries"
Maybe Ms. Yellen needs to go to community college and take some remedial history. Nonetheless, she does touch upon the US "economic reality" exemption that Mr. Ben Dover discussed previously.
- On Fed Credibility (it is now certain that she is an alien for using those two words in the same sentence):
"Evidently the credibility that the Fed and other central banks have built over the past few decades in bringing inflation down has spilled over into a belief that we won't let inflation get too low either."
- On Securitization:
"Securitization is one of the great financial innovations of the last generation, it greatly expanded the market for these loans and reduced their cost. I think there is no question that securitzation of certain types of loans like subprime contributed to the crisis we had, but we have to be careful not to throw out the baby with the bath water." And this is why the US is doomed: "Securitization markets will continue to play a major role in our financial system." Remember: debt is wealth. And thus, the implication, Infinitely securitized debt is infinite wealth.
- And, For The Win:
"The Fed's analytical prowess is top notch, and our forecasting record is second to none. The FOMC is committed to price stability and has a solid track record in achieving it."
No, she really did say that. Hey Janet, how about we confirm this statement. Oh yeah, the Fed prohibits anyone from actually knowing what on earth goes on there, and just how it is you guys confirm your forecasts with reality: did you guys actually predict this unprecedented crash? Would have been great to warn the rest of us mere mortals.
The entire one hour plus clip can be found here courtesy of FORA TV, and the first 10 minutes are on the clip below.
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HAHAHAHAHAHAHAHAHAHAHAHA; post of the day; thanks for the laughs.
i wonder what college developed that lunatic.
Berzerkely ???
hahahahahaha.....Berzerkly! Fuckin' Awesome!
I'm out of lithium, so I could not stomach the video, but based on TD's summary Grandma Janet makes a very strong case for death panels as its time for her to go!
The Fed's analytical prowess is top notch, and our forecasting record is second to none. The FOMC is committed to price stability and has a solid track record in achieving it."
I think she didn't say these two profound lines. Sorry, profane lines. No human being who knows the meanings of "analysis" and "forcast" would say that about FED.
By the way, I feel FED is going to be restuctured. Can I send my resume!
Bernanke said the subprime crisis would be contained and that it would not affect the economy one iota. Then, one day in late summer 2008, Bernanke panicked and cut interest rate by a whopping 75 basis point which was second to none record cut, indeed.
Yes, analytical prowess and second to none forecasting.
How ironic if Bernanke shall become the fed Chariman who presides the second great depression! Second to none forecasting? Indeed! analytical Prowess? Of course!
LOL...didn't you hear that Bernanke and central bankers are self proclaimed heroes?
Where is the love?
Their cheap cop out. IT WOULD HAVE BEEN S-O-O-O-O-O-O MUCH WORSE IF WE HADN'T HAVE ACTED SO HEROICALLY. Well, They gotta PROVE that one to me.
Oho, now you fuckers wanna have a go at me eh ?
Well, let me tell you this, I hadn't had time to take my medication WHEN I made those statements.
Furthermore, let me add, NOT everyone is capable of gross stupidity as my fellow Federal Reserve governors and I possess.
Do you really think any ordinarily sane person could replicate the garbage we have produced, NOT on your nelly, son.
It takes a special kind of insanely creative intellect to create weapons of mass impoverishment.
Now, have you fuckers seen the value of your dollar lately ?
Heh heh, who's laughing now eh ?
Go on then, keep saving those dollars, instead of spending it.
By the time, me and that bald headed coot, ah.... whats his name..... Binny, Bonny, Bonngy...... ah well, never mind, it will come back to me.
You know that bald headed coot who just got re-appointed ?
Yeh, that the one.
Well, you fuckers better stop messin with us, yo all keep ar... agitating and stuff and I'm a gonna sic Homeland security on you.
Now, where's that fucking phone number again ?
Hey, Banngy, go give those Homeland folks a call, the serfs are actin uppity again.
Yours sincerely
Janet...? ahhhh whats my name again ?
Quit yelling... and kindly inform Ms. Yellen that The Baby IS the bathwater!
The baby has no intention of ever getting clean. Throw it in the trash.
Tyler, please provide supporting evidence for your comment about "tens of millions who are deadbeat squatters".
And if that really is true, then consider the social disaster and violence that would result if they were all evicted, as you say.
There aren't enough trains in the world for these new hobos to ride on if that was to happen.
It would be a recipe for the next American civil war. Just because people can't afford their mortgages doesn't mean they can't get guns and ammo.
The only real solution to this problem is to simply do what is already happening: allow people to stop paying their mortgages until they sell their houses or start earning incomes.
Yes, that means that some people will appear to be getting a free ride - get over it, because the consequences of not doing this are far worse.
Anon #67440... I see the point you are trying to make... but then should we all be allowed to not pay our mortgages... and can I then stop paying my mortgage on my second home also... and everything else I own. That is only fair.
Imho, there should be a program that if you feel you can't pay your mortgage then your house immediately goes up on auction for open bidding by people who speculate in real estate. You get to stay in your house after your house is sold... the bank absorbs the loss from the sale... and then you pay rent to the new owner based on a derivative of whatever price the house was sold to him/her.
That way families and their homes can be maintained... but you don't get to stay in your house without paying anything... the banks are punished for making egregiously inappropriate loans in the first place... and capitalism is still at work through the real estate speculator.
Just a thought...
Minnesota, that would be too sensible of a program and besides our country rewards failure!
That's right... what the hell was I thinking :-)
And you said military action was no longer an option.
How are your women doing without the de-wormer?
Look, You are easy to track. I am going to start flagging your stuff as junk if you do not change your delivery. I am not saying you are wrong, I am just saying your stuff is junk the way you present it.
[QE] is stimulating the flow of credit, but [it is] simply not as powerful levers as large rate cuts.
How about minus interest rates? Buy a house please, we will give you money!!!!
Or still, it is conceivable that were inflation to intensify, we could find ourselves in a devastating spiral in which prices fall at an ever faster pace, and economic activity sinks more and more."
Inflation arrives and prices fall, perhaps with hyper infaltion dollars I can afford the second pool, its needed.
"The Fed has pumped up the money supply and expanded its balance sheet to fund its rescue programs, potentially igniting inlation"
I think that money might have 1.5 trillion dollar losses (so far in RE)
""Nowadays hyperinflation only happens in 3rd world countries"
"Ignorant, Arrogant"
"Securitization"
"Securitizing losses, how do we get ANY result out of the mess: Poor houses, we will take your 300m properties, rent them back to you at a profitable amount"
Fed
See no evil
Yogurt has spoken...now get me a biale and coffee.
who listens to these clowns anymore?
200 econ phds on fat wages and you miss the 56 trillion bubble, and destroy 14 trillion in wealth.
what good are you for, again?
funny, because judging from his phd dissertation bernanke seemed to understand these issues...but i guess he drifted.
much powerful the dark side of the force is, my young padawan.
WOW! What Planet dost thou Grandest Grandma of Economic Delusionment hail from? Stranger than fiction, no? "Top Notch" too.
I'll quote George Costanza here. "Yada, yada, yada" end quote.
LMFAO! Price stability, ah er, oil, gold, SPX, housing. Great job on milk and autos, not so much the rest.
She d look good in a prison uniform
the Fed's forecasting ability is top-notch? no shit. I guess all of the lower tier bloggers and pajama media types who were calling for 10% unemployment when the Fed was guessing for a max of 8.2% just don't matter a damn when it comes to comparison of who's top notch and who isn't.
No, the (then) coming mortgage issues were obvious to many, lots of us had seen it at least a year in advance. And so... it quite naturally follows that the Fed did also. What they did with that information is another question.
BTW TD, you may want diverge and point out how the WH is planning the 2nd term by dragging unemployment so it turns before 2012. Notice the lowering of employment expectations for the next 2 3 years. A rip roaring market will seal his 2 nd term too bad it will be a run from SPX 400 to 1000.
I gave up watching after the 2 1/2 minute introduction about how wonderful she was... how smart she was with her many degrees and honorary degrees from oh so many colleges... and finally after the third time the federal reserve was mentioned as a main contributor in the illustrius rise of her career... I shut er down... because I knew it would be all downhill from there. There is an inverse correlation between the that kind of introduction and the quality of the speech that follows...
quote: "Once we squeeze all we can out of the United States, it can dry up and blow away."
who said that? someone this slag knows quite well.
& don't forget Yellen's married to George Akerloff designer of GLD & SLV timebombs in collusion with a group of name banks & 'custodians'.
why isn't all this stuff taught in elementary school
btw, hf Pursuit Partners could be in line for a $35m judgement against UBS who knowingly sold them debt paper they knew was about to be downgraded more conventionally described as FRAUD
Forecasting is second to none? If we take Janet Yellen at face value then the Fed caused (or consciously did nothing to stop) the economic meltdown of 2008 because it could see it coming just like the thousands of forecasters outside of the economic mainstream who saw this coming. If we believe Janet then the government should be discussing repealing the Federal Reserve Act as the Fed totally failed in its mission.
The phrase "financial innovation" is rapidly losing all meaning just like the words "luxury," "signature," "efficient," "utility," and a host of other words and phrases that became ubiquitous during the debt expansion of 1982-2007. Securitization is in no sense of the word an innvoation. Securitization simply allows a wider range of people to bet on whether a basket of underlying debtors (home buyer, developer, commercial real estate fund, student, consumer, car buyer, etc.) will pay their debts. Interest compensates for the type of bet you want to make as a bond purchaser. This "financial innovation" is just a new gambling product (the rise of Texas Hold 'Em would probably be a financial innovation by these standards as it provides a new revenue stream for an entity that can now borrow more money and thus create "wealth").
Credit default type derivative products are other "financial innovations" that likely need to be simply abandoned but will continue to be championed endlessly. Bonds bear interest above the "riskless" rate to compensate the bondholder for the risk of default from the issuing entity. If the bondholder can turn around and cheaply purchase products that guaranty a return even if the entity defaults then the bond should bear interest at the riskless rate plus a small bump for the cost of purchasing the derivative and the counterparty risk from the issuer of the insurance-type product. If the government implicitly backs the sellers of this "bond insurance" then all bonds for which such derivatives are available should bear interest at the riskless rate plus the bump for the cost of the ISDA or whatever is being used.
What was wrong with prospective bondholders thoughtfully evaluating the risk of the bond and demanding an adequate interest rate? Why do we need securitization and derivatives to increase the velocity of debt and decrease (not nearly enough as to be fair) interest rates at the borrowing level (thus pumping asset values)? Would we be better served by slowing down debt creation, letting asset values crash and thus create lower barriers to entry for people to start non-finance industry based businesses? The only winners here seem to be financial institutions charging fees and big institutional bond holders (who collect interest above the riskless rate without any risk whatsoever).
Am I missing something? Please correct me if I am wrong.
In life, there are bad ideas. New ideas are not always innovations, even if they come from respected people with respected credentials. The folks I deal with who are over 40 seem to be programmed to equate "new" with "innovation" and other emotional responses (Edward Bernays did brilliant work on the baby boomer generation). Likewise, we should not do things simply because we can. A lot of people seem to have never accepted the idea that a computer or Blackberry device allows you to communicate constantly and rapidly and perform a lot of tasks a lot faster but that does not mean that you should suddenly perform all those tasks at an exponentially higher volume simply because you can perform them faster.
Judgment is a key ingredient of leadership and seems to be wholly lacking in modern American society.
..nor should you, because you can, perform them tooling along at 40 mph on the streets, while dialing in NPR's foreign language bites, applying lipstick, and drinking hot coffee.
There seems to be monstrous overabundance of people who would rather do what they want without regard to being right.
Whatever happened to the joy that used to come from being and doing something right?
Has anybody got further than 5 1/2 minutes...? That's as much as I could handle.
If you listen carefully you should be able to hear the cogs slowly turning in her head.
DavidC
Made it to 8.5 by moving cursor past the preamble. Does that count as 3 minutes of all I could take before the explosion in my head?
She is another illustrious graduate of Yale, leave UC-Berkeley out of it.
hey she's affiliated...what can anyone do about that.
nevertheless...GOOOOOOOO BEARS !
Listen to Max
Its a protection racket
http://maxkeiser.com/2009/09/12/ote18-on-the-edge-with-max-and-stacy/
Sometimes he's a little windy but THIS TIME that is one hell of a confluence of stories.
The realist in me is saying get ready for another shit storm and soon.
Come on Walstreetpro I need some weekend entertainment.
I thought I heard banks were going to try to unwind all of there swaps by year end...
but then this
http://www.nytimes.com/2009/09/12/business/12change.html?pagewanted=2&_r...
They must be taking China seriously.
Debt is a consequence of wealth only if an equivalent asset is on the other side. What return do we get on this asset purchased with this debt? Does it cover interest payments? No? Then we are just taking other folks hostage as we continue extracting "value" from the dollar through its devaluation.
I hope folks don't really think the Chinese are afraid to destroy the dollar sooner rather than later. There is certainly no history in China that suggests such restraint is common.
You have your history wrong sir. Quoth Sun Tzu:
In all fighting, the direct method may be used for joining battle, but indirect methods will be needed in order to secure victory.
The Sun Tzu quote is a reference to degree or manner of response, not timing. China has never been shy about addressing issues. The battle is already joined, in my opinion. Our inability to recognize such is support for the indirect method.
From about mid-point
"The curtin is now rising on the final act [where] it's defined
by economic revovery"
Maybe I should chew on my cell phone battery, so I can
watch the full hour.
The only way to watch that is with a combo of xanax+a strong antiemetic (for me a blunt works best). Actually may use that combo to watch Obama's speech on Monday night.
I agree with minnesota nice. Anytime there is a 3 minute preamble, i know what follows ain't going to be good.
No kidding...discontent is rising with the masses and I don' t know if anyone else felt the same way I did from watching BO's speech last week, but I felt like our Reps and Senators are getting pretty pissed at eachother as well. I think it is awesome that Congressman Miller called out BO and is now raking in the bucks....Awesome!
I think we ought to have a FED posting week. Where we start every post by bragging for no less than 10 lines and no more than 12 and then say what we are about to say. Work it up to introductions ala A Knights Tale. We could just pretend that we have butt kissing introductionists who start our posts for us. LOL
Lizzy, what a waste of a blunt.
Medical Marijuana
I'm wondering if Janet stills has a batch of the infamous Owsley LSD from the golden gate park gigs in the 60s because it sounds like she is tripping to me.
Wasn't that her spinin' in the park listenin' to rat dog?
could have been! I go to lots of RD shows, none on the west coast though. like the Dead, they do much better with us easties.
In the name of mental balance I need an emergency two liter LSD injection straight to the brain after listening to that hour long diarrhea of simplification, generalization and ordinary thought.
Deniability is an essential, nay, defining part of the human genome.
When combined with an education, semitic incest and contacts, and pure bullshit, it is tragic.
Ah, the Yellens and their collective central planning, their arbitrary statistics, their theories and crises and glowing Five-Year Plan assessments of Fed prosperity, enriching to them and wrecking to us…who must serve, feed, obey and worship…
The Pragmatic Capitalist got it right: Bernanke is largely credited with saving the global economy from falling off a cliff when in fact the economy did fall off a cliff... This is the worst economic downturn in the last 80 years and investors are playing it off like we averted crisis. Ask the 10% of unemployed American’s how the averted crisis feels.— July 27 2009 http://pragcap.com/should-bernanke-be-reappointed
And bubble maestro Alan Greenspan, good as he was at creating bubbles, was never able to identify a bubble until after he’d made the investment bankers rich. While busy making the worldwide housing bubble with his easy money policies, he said this, in a speech in 2002:
“We at the Federal Reserve considered a number of issues related to asset bubbles – that is, surges in prices of assets to unsustainable levels. As events evolved, we recognized that, despite our suspicions, it was very difficult to definitively identify a bubble until after the fact – that is, when its bursting confirmed its existence.
“Moreover, it was far from obvious that bubbles, even if identified early, could be preempted short of the central bank inducing a substantial contraction in economic activity – the very outcome we would be seeking to avoid.”
More from Pragmatic:
My primary problem with the Federal Reserve and Bernanke is the reactive approach to the economy. How can the most important facet of a proactive market be so reactive?… Like an investor, if you wait to act when the event actually occurs you’re likely too late... The results of this approach speak for themselves... Below are a few of Bernanke’s classic quotes… Not only did he see no chance of a recession, but he also said there was no chance that housing prices would even decline:
“Well, unquestionably housing prices are up quite a bit; I think it’s important to note that fundamentals are also very strong. We’ve got a growing economy, jobs, incomes. We’ve got very low mortgage rates. We’ve got demographics supporting housing growth. We’ve got restricted supply in some places. So it’s certainly understandable that prices would go up some. I don’t know whether prices are exactly where they should be, but I think it’s fair to say that much of what’s happened is supported by the strength of the economy.”
- January 2005
“We’ve never had a decline in house prices on a nation-wide basis. So what I think is more likely is that house prices will slow, maybe stabilize: might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.”
- July 2005
“We expect moderate growth going forward. We believe that if the housing sector begin to stabilize, and if some of the inventory corrections still going on in manufacturing begin to be completed, that there’s a reasonable possibility that we’ll see some strengthening in the economy sometime during the middle of the new year.
Our assessment is that there’s not much indication at this point that subprime mortgage issues have spread into the broader mortgage market, which still seems to be healthy. And the lending side of that still seems to be healthy.”
- Feb 2007
The global economy continues to be strong, supported by solid economic growth abroad. U.S. exports should expand further in coming quarters. Overall, the U.S. economy seems likely to expand at a moderate pace over the second half of 2007, with growth then strengthening a bit in 2008, to a rate close to the economy’s underlying trend.
July 2007
Blah Bluh Blah Blah Blah, Blah Bluh Blah, Blah Bluh Blah, Blah Bluh Blah Bluh Blah Blah
I bet your average audience member is constantly looking for someone to tell them what to think.
Don't forget - she was the co-author of the famous Boston Fed study in the early 1990s that claimed that "redlining" was occurring, requiring stepped up efforts to make loans in "low income neighborhoods," i.e., to unqualified borrowers. In fact the study failed to compare default rates among borrowers in low income neighborhoods and elsewhere. They were the same, thus showing that no discrimination had in fact occurred. She bears a heavy share of the responsibility for the subsequent disasters.
i agree
"The Fed's analytical prowess is top notch, and our forecasting record is second to none."
I have more faith in Old Yeller than Old Yellen.
Further proof that the elites are not only foolish, but dangerous. Letting them run things "because it will make our heads hurt if we know everythng they know" must end; but, absent armed insurrection or just south of that, I have no idea how you pry their steely fingers from the steering wheel, and so fear we are just voyeurs on a fast drive into a vast ditch.
Ha ha! Didn't I warn you about Janet from another planet? I'm sitting here watching that creepy beast on a day-to-day basis. And she isn't the worst of them!
Nevertheless, I love her as a challenge to all you petit bourgeois types. SHE is YOU gone to the ultimate limit!
Will YOU be able to avoid going to the ultimate limit? or will YOU join Janet on her planet?
It's not a question of, how crazy is Janet? The real question her idiotic remarks pose is, how crazy are YOU!!
Mes semblables, mes camarades.
what a turd
By Jim Grant
Grant's Interest Rate Observer
December 2, 2005
Former Fed governor Laurence H. Meyer, in a 2003 talk at the Federal Reserve Bank of St. Louis, described a telltale exchange on the subject of how to define[price/financial] stability. The scene was Meyer's first FOMC meeting, in July 1996, and governor Janet Yellen was making the case for inflation targeting; she said she would aim for 2%. Greenspan replied that the Federal Reserve had a mandate to foster stable prices, not rising ones. To which Yellen rejoined that the Fed also had a mandate to promote full employment. To hear her tell it, a small positive rate of currency depreciation is a necessary lubricant for economic growth (not so, according to a survey of 133 economists over 50 years, produced in 2002 by Stanley Fischer et al.)
"Janet then seized the initiative", Meyer related,"asking the chairman how he would define price stability. Greenspan tried to get away with his vague definition; 'Price stability is the state in which expected changes in the general price level do not effectively alter business or household decisions.' But Yellen pressed him and asked him if he could put a number on that. Remarkably, the chairman agreed, and said he preferred zero inflation, correctly measured. Janet asked him if he could settle for 2% incorrectly measured."
Meyer finished his story;
During a go-around on the topic, only a few Committee members preferred a target of zero, and the consensus was very strong for a 2% target. The chairman ended up summarizing the discussions 'an agreement for 2%' but he cautioned members not to reveal that such a discussion took place.
Talking of Yellen, fresh report from Fed IG that she screwed badly and it caused loss to FDIC:
Fed Failed to Curb Flawed Bank Lending, Inspector General Says
Sept. 12 (Bloomberg) -- Federal Reserve examiners failed to rein in practices that led to losses from excessive real estate lending at two banks in California and Florida that later closed, the central bank’s inspector general said.
..
..
..
he failure of County Bank, in California, will result in an estimated loss to the FDIC of $135.8 million, or 8 percent of the bank’s $1.692 billion in assets, the FDIC said.
“We believe that the magnitude and significance of County’s asset quality deterioration and credit administration deficiencies that emerged in the summer of 2007, coupled with management’s disagreement with regulators, warranted a more direct and forceful supervisory response,” Coleman wrote.
The San Francisco Fed “did not follow Board procedures that required sending a brokered deposit restriction letter to County” when its capital base fell below a target level, the report added.
http://www.bloomberg.com/apps/news?pid=20601087&sid=atgnqYrMSrtI
Shes very creative with her synomyn selection for "going bad"
"the economy nosedived"
"mortgage related asset valued plummeted"
"the fiancial system plunged"
very creative.
I am at the part where she says "Yes...that is trillion with a T!" (I being very generous with that punctuation)
They have a special thesaurus for that at the federal reserve :-)
And She! being very generous with other people's money! @%&#!! (I also being very generous with that punctuation! :))
she thinks low unemployment rates would be th main cause of inflation. lol.
What a creative application of the unemployment - inflation relationship.
makes me wonder how some peopel get thier jobs
it all makes sense now, the dollar is a liability to her.
This woman reminds me of a little munchkin. Spouting off what happened, but washing her hands of the responsibility of participating in it. What a complete failure of the American system of education, "credentials" and total lack of sense of history for all the modern day events are mere repeats of the same failures of the late 1920's. Remember the "new age of prosperity?" Nothing new under the sun...
These elites lack two important elements, common sense and historical prespective. Without them they are eternally blind and doomed to repeat the mistakes of the past.
She reminds me of Dr. Ruth. Let's all have Goooood SEX.
Lionhead #67844
Now we are experiencing what our implicit trust in "people with credentials" have brought us to.
From Wall Street to the White House, these people with "credentials" have spared no effort to impoverish us.
A big Thank you to all our great leaders in Banking and in Politics. Our lives would not have been so 'enriched' without your continually creative 'innovations'.
Don't forget the Godfather of them all; Greenspan. They trot out the discredited old fool every chance they get. He still has the juice to hit any talkshow anytime & drool on his shirt for the allotted five minutes.
"We'd like to welcome you to Munchkin Land." (sung in a high squeeky voice)
Considering that inflation is a rise in the money supply, we have already laid the groundwork.
I think that we are not Ms Yellen's audience. Her fatuous drivel was intended for the brain dead masses. Perhaps we shouldn't say too much. They will target us all with the Black Helicopters. Use the special radiations to blunt our minds down to base level & end our resistance.
If you read between the lines, it appears she is saying that the U.S. will soon be a third-world country.
I can't believe she blames the poor people that took out loans they could not afford. How about she answer a couple basic questions.
(1) Why did Paulson let Lehman's fail. Stop hiding behind the blatant lie that the FED/treasury did not have authority to bail out Lehman. Why has congress never called the Fed on this lie?
After Bear Stearns failed, the PDC (Primary Dealer Credit ) facility that was put in place would have extended a lifeline to Lehmans.
What about section 13.3 of the Federal Reserve Act. Who decided to stand buy and watch Lehman drown, without throwing in a Life preserver. Did she never listen to In the Air Tonight by Phil Colins or Stan by Eminem
You know the song by Phil Collins, "In the Air of the Night" [sic]
About that guy who coulda saved that other guy from drowning
But didn't, then Phil saw it all, then at a show he found him? ;-)
http://www.federalreserve.gov/aboutthefed/section13.htm
3. Discounts for Individuals, Partnerships, and Corporations
In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank: Provided, That before discounting any such note, draft, or bill of exchange for an individual, partnership, or corporation the Federal reserve bank shall obtain evidence that such individual, partnership, or corporation is unable to secure adequate credit accommodations from other banking institutions. All such discounts for individuals, partnerships, or corporations shall be subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe.
Naked Short (I shudder typing Janet, Naked, Shorts in the same sentence) Selling?
Naked Credit Default Swaps.. No mention of these financial instruments that frankly only a few of the largest Wall Street banks were manufacturing in their back orfices, under the watch of the New York Fed of which little Timmy was supposed to be the big swinging dick but never caught this.
"Nowadays hyperinflation only happens in 3rd world countries"
I am now 100% sure that hyperinflation WILL hit the United States.
I tapped out 5 minutes 40 seconds to much pain inflicted for a citizen to bear.
Must be getting desperate on the PR front for the Fed to bring gramma out on the talking heads circuit.
HR 1207, Audit the Fed hearings begin Friday, September 25th.
She's right, debt is wealth!
...assuming you never intend to pay it back.
What's that you say? Theft? No, it would only be theft if we took foreign money without asking. But they gave it to us willingly. Who cares if the outcome is the same, the process is different therefore it's not theft.
YEEEEHAW! We're RICH! Suck on that foreign creditors!....Hey, why are you pointing those nuclear weapons at me? Hey, stop that!
As far as I'm concerned, if they have "securitized" a mortgage down into so many chopped up pieces and sold them as part of some big package, then the person in the house actually owns it outright and can quit paying their mortgage.
That is part of the problem here right? Chopped up mortgages such that no one can tell who actually owns the mortgage? If no one knows who owns the mortgage, then NO ONE does and possession being 9/10ths...the occupant gets the house free and clear.
I guess they shouldn't have chopped up the mortgages into tiny bits and pieces and sold them out to the universe. There needs to be consequences acting against this bullshit.
MBS... Spam.... MBS.... Spam... both seem to look tasty on the outside of the package... but when you read the ingredients and open the package...
Is that a human?