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Is Janet Yellen Smarter Than Me?

EconMatters's picture





 

Yellen`s Talking Points

 

During Janet Yellen`s Senate Banking Committee testimony to paraphrase she said that she doesn`t see a bubble in stock prices based upon some of the metrics they utilize at the Fed, and she mentioned that the rise in the 10-year Bond Yield approaching 3% caused the Fed to delay their previously telegraphed taper move in October.

 

There are a couple of disturbing points that came out of her take on bubbles and the rationale behind not tapering a mere 10 or 15 Billion dollars given the monthly commitment of 85 Billion in Fed Purchases every month. 

 

Since when did the Fed outright Buying of Bonds become Normal?

 

Just the mere notion given the history of markets and the Fed`s participation in Markets that the Federal Reserve buying $85 Billion of Monthly Asset Purchases is somehow normal or not just an exceptionally unusual participation in financial markets is quite troubling. 

 

First problematic issue is that they do not think this policy is extraordinarily unusual, and second problematic issue is that such an extraordinary policy might not have some unintended consequences or side effects for financial markets. 

 

Are Markets Free or Social Instruments?

 

The Federal Reserve has no business whatsoever in affecting market prices of stocks and commodities, and it seems that the original purpose of easing monetary policy by lowering the Fed Funds Rate to near Zero is one thing, and yes this derivatively will effect Bond Prices and the Bond Markets, but they have no business artificially influencing the Bond Market through outright purchases of government Bonds.

 

This is far overstepping their purview and it vastly distorts market prices, which is bad enough in and of itself, markets exist for a reason to set prices given fundamentals of supply and demand that reflect economic conditions in the real world. 

 

But to not expect the massive influencing of the Bond Market to then have derivative effects into other markets like commodities and equities and that somehow prices could appreciate to unsustainable levels that come crashing down once the intervention is discontinued is just the height of irresponsibility and short-sightedness.

 

Market & Trading Experience in Short Supply at the Federal Reserve

 

Anybody that has actual market experience, someone who regularly through good and bad business cycles trades stocks, bonds, commodities and currencies recognizes how these instruments trade under all conditions. 

 

This is what the Fed lacks is any understanding of what constitutes normal price discovery in financial markets. Economic theory may be great for setting interest rate policy from a Macro level, but once the Fed started directly intervening in Markets, then they need some trading experience to spot bubbly conditions of asset prices, i.e., how the instruments normally trade versus the current market price action.

 

Distorted Price Discovery in Markets

 

Whenever traders get to the point where they know they can buy every dip for the last five years because the Fed was always going to bail them out either by restarting another QE Initiative, or the current backstop of 85 Billion of Direct Market Asset Purchases this distorts in a highly artificial manner true market price discovery.

 

It also leads to borrowing heavily on margin further incentivized by exceptionally low borrowing costs that adds additional fuel to the fire in elevating asset prices to unusually highs levels relative to the actual fundamentals of the market under normal price discovery conditions. 

 

Isn`t this the same Methodology & Psychology of the Last Bubble Cycle?

 

The most irresponsible portion of this behavior is that this is precisely the behavior that led to the financial crises, the housing crash and resultant mortgage, bank and financial system bailouts of Wall Street firms like AIG, Bear Sterns, Lehman Brothers and Citibank. 

 

Every regulator, politician, Fed Policy figure and Bank Executive all agreed that they had learned the lessons of using excessive leverage, excessive risk taking, and that the Federal Reserve especially was going to set the precedent of “Moral Hazard” in that they were going to go out of their way to avoid the monetary policies of excessive intervention that led to the overly disproportionate risk taking responsible for the Housing Bubble. 

 

And yet in just five short years we have forgotten all this wisdom and learning points and have thrown prudent risk management strategies regarding monetary policy out the window and summarily fail to recognize the Fed`s hand in creating a massively unsustainable bubble in financial markets once again.

 

10-Year Yield & 3% Threshold – Really?

 

If the Federal Reserve was threatened by the 10-Year Bond yield approaching 3% so much that they couldn`t taper a mere 15 Billion dollars, then what does that foretell for the future of these markets? The Fed ought to ask themselves this very question, and it ought to keep them up at night! 

 

This says more about the problem that the Fed has gotten itself into with regard to this unusual monetary policy initiative to intervene in financial markets - than at what price level constitutes bubbly conditions in stock prices. 

 

They cannot even approach un-intervening in markets because they have overstepped any normal fed policy boundary or any market policy for that matter that the level of artificial influence is to such a high degree that they basically are the entire market in certain pricing dynamics – unless they are prepared to be the market (whole other set of unintended consequences) then going from an interventionist market back to a free market means absolute chaos – and the classic example of an artificial bubble!

 

This is the 10-Year Bond Yield; the fact that a 3% yield threatens the Federal Reserve is absurd. This is not the 1-Year Yield, we are talking about a 10 year time period; shoot the Fed Funds Rate was 5.5% just 6 years ago! 

 

Get a grip Fed because you’re worried about the least worrisome dynamic of your Fed Policy`s unintended consequences – what happens when you have a Bond Market after five years of intervention that returns to market forces all the sudden and the US is facing a 12% interest payment on its debt? This is what the Federal Reserve should be worried about down the line. 

 

My parents actually had mortgage rates in the 18% range during their lifetime – this degree of escalation in higher yield is not so unprecedented as some might think. It can happen once again!

 

This isn`t my First Bubble Rodeo!

 

I have been a market participant for the last fifteen years and have seen the Tech Bubble, The Enron-World Com Bubbles, The Housing and Financial Crisis Bubbles, and I can tell Janet Yellen asset prices including stock prices are in bubble territory. 

 

When I look at how easily the Google’s, Tesla, Netflix, Priceline’s, Twitter, Amazons of the world have reached these lofty price levels over the last five years the Fed has set the stage for massive price depreciation in stocks and people`s portfolios once the interventionist Fed policy is taken away – these are not normal market conditions Janet Yellen! 

 

Accordingly you may have an economic background, and have economic and financial models that lead you to believe that stocks are not in bubble territory Janet, but from a trading perspective, someone with actual experience in buying and selling financial assets over the last fifteen years – there is no true price discovery, i.e., instruments don`t trade in a two-sided pricing discovery process.

 

It is Risk-On all the time with no consequences yet for the inevitable unintended consequences of such behavior – the inevitable crash when conditions get unsustainable under any intervention policy.

 

Now or Later – That is the Question!

 

This is the real danger to forestall the cessation of intervention for longer, to delay the stepping away, to the point where asset prices get so elevated, that even with an $85 Billion Monthly Asset Purchases, the decline and losses from such elevated levels, means that stocks just crash right through levels in humongous freefalls.

 

This is the scenario where losses exacerbated by out of this world leverage, cause that 85 Billion to be nothing but a mere entry point for more shorting, as the Market Crash takes hold, and stocks freefall dropping chunks of losses along the way that has fund managers selling without Algos – just get this stuff out the door at any price – this is where we were in 2007 with 15 Billion Quarterly Write-Downs by the Banks! 

 

Hence you can pay now or pay later, but you’re going to pay Janet! So until you get some actual market experience, you keep to worrying about how to create jobs, and let me tell you when there are bubbles in stock prices Janet! 

 

Yes Janet I am smarter than you when it comes to Stock Market Bubbles, and we are currently in a stock market bubble. Consequently when do you want to Pay Janet – it is going to cost you either way, Pay now or Pay Much More Later on down the line!

 


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Sun, 12/01/2013 - 09:48 | Link to Comment shovelhead
shovelhead's picture

I'm doomed for eternity (or at least my part in it) to see Yellin with W. Banzai's dog face.

She will forever be Old Yellin, the bankster lovable, but rabid, dog that had to go.

Imagery and symbolism are powerful tools.

Sun, 12/01/2013 - 08:54 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

comon!!! give her a break :P /sarc

Sun, 12/01/2013 - 07:00 | Link to Comment zipit
zipit's picture

Old Yellen will keep on the path Alan and Ben have set... none of them will change until they are forced.

Sun, 12/01/2013 - 01:07 | Link to Comment q99x2
q99x2's picture

Her family has thousands of years experience at story telling, circus acting and fortune telling. Legend has it some were werewolfs. In fact Drudge right now has a photo of her with a link above it saying "World's ugliest dog dies." Wasn't her though. I checked it out. So the question is not are you as smart as Janet Yellen but rather do you have the qualifications to be FED chairSatan.

Sun, 12/01/2013 - 01:14 | Link to Comment highwaytoserfdom
highwaytoserfdom's picture

You know the audit the fed bill had 384 house sponsors and s604 never went to the senate...   2008 was never about health care heck FDR had quasi (Fannie Freddie style) Blues and state variants taking care of 65% of it anyway..  It has never been about DNC/RNC it is about the Fed and fractional reserve Usury...  Elite economic hucksters drive this fraud epidemic....   Yup sheep, Muppets, white collar, blue collar.. all victims to crony non capitalist......  Not even soft fascism but very very hard fascism...... Heck corporations wrote health care and have there fingers in all the trade deals.. Yellen is a degenerate amidst the usury creatures crawling out of Jeckle Island. WHO ARE THE PRIMARY DEALERS BUT THE REAL WELFARE SOCKPUPPETS ?

"The Rothschilds, and that class of money-lenders of whom they are the representatives and agents -- men who never think of lending a shilling to their next-door neighbors, for purposes of honest industry, unless upon the most ample security, and at the highest rate of interest -- stand ready, at all times, to lend money in unlimited amounts to those robbers and murderers, who call themselves governments, to be expended in shooting down those who do not submit quietly to being robbed and enslaved." by: Lysander Spooner
(1808-1887) Political theorist, activist, abolitionist
Source: "No Treason #6" (1870)
Sat, 11/30/2013 - 23:55 | Link to Comment The Heart
The Heart's picture

 

Smart?

Tell ya a story about smart.

When the gas delivery man comes...all men are out to greet and watch as the operation goes. Some trade gifts, and all have news to share. It's a sort of howdy neighbor occasion, especially during the holiday times.

As the radioactive fracked gas pumps from the truck, many a thing comes up in the ol country town talks between the neighborly travelers. Among them, the growing awareness of a corrupted govt and a lying machine that knows no end. The ever growing anger, and how everybody knows who the bad babylonians are. What the gas delivery man has said is, even the veterans are waking up and getting angry. He joked and hauntingly bellowed out, CHANGE!

It was amazing to hear the words of a freeman speaking his truth without fear. More and more are embracing the very defensible truth than ever before, he said. People are really waking up and do you know why? Obamacare, he glared! They are fed up with all the corruption and criminality. The people that supported obama are angry because of his obamacare plan that is only for his corporate masters gain, and not any one normal working slave person. They feel betrayed. He said, the people all know about the communist takeover and the plans to kill America. Happy to say was he, most do not even watch the TV or read the local rags that are a waste of good trees anymore, because of their lies too.

Bright eyes indeed were we to hear this news from all around the county. Many just glared. He has the hand on the pulse of the local chatter and THIS is what is happening now all across America. For the last year and a half, there have been good men lining up at the local wally world every morning sunrise sharp to gain all the heavy metals they can. Even though the costs of the pointed velocity objects are going down in price, they still cannot keep enough stocked. Good men and women are preparing to cleanse the house of the zionist/globalist/communist/socialist/nazi/BANKSTER trash.

Everybody knows WHO is responsible for pulling the strings on all the govt puppets. They are saying that first mission after the babylonians fire the first shot, is a good defense, is a good offense. Priority one is to clean out the local city halls and police forces that are cow-towing to the communist/socialist agenda 21 first. All the cia planted thugs. They are well Known. Then, they will install Constitutional Sheriffs and judges who will deputize half of each county. THAT is a lot of good men and women with guns and a badge to stand up for the real rule of law. There will be NO standing up-right for ANY phony-baloney bankster troops from ANY invader corporations waring ANY kind of uniform, or not. Each of the various generations of the veterans are teaching the young whippersnappers all the tricks of the trade. ALL hold in the heart, the US Constitution every man jack swears allegiance to.

After that, they speak about going to the next halls of leadership all the way up to the state level. He said, each state will been cleansed of the evil bankster money changers and assorted flunkies to the communist/socialist takeover. All anti-God's Law extremists are to be hung out to dry as forecasts of whats to come for the rest. All the free states WORLD-WIDE will join together as one with one common goal, and the march on washington to finally clean out the rats nest will become history. All underground exits will be blocked, and all air travels or water travelers will beware.

His tears were slowly flowing as he spoke to listening to the old WW II veterans describe the same thing they went to Europe to fight against. America has become nazi-germany! He was a big man and soon stiffened up. Said, yeah, going to war is no fun as every veteran knows. He just did not think it was going to come down to his own govt declaring war on every free thinking born American in the country soon. Himself included, who had served thirty years in the army. This is a guy that only knows how to be a gas delivery man...for now.

 

Sat, 11/30/2013 - 22:47 | Link to Comment JailBanksters
JailBanksters's picture

Can the Wall St banks function without the FED?

Can the FED function without the Wall St Banks?

Can you Taper a Ponzi Scheme?

The answer to all these questions is a resounding NO.

It's a Symbiotic Relationship where each one depends on the other one for their own survival. This is the basis of the entire US Economy.

 

 

Sat, 11/30/2013 - 21:17 | Link to Comment carlin401
carlin401's picture

Like all things in life, and especially in club krugman ivy league cicles, its not what you know, but who you know,

All these same CLINTON re-treds forever fucking boring,

Are the 'smart'? who gives a fuck, what does smart have to do with it?

they're smart in the sense of a urban pimp that wears the best clothes on the street, and drives the smartest car,

'smart' in the USA and $5 will get you hot coffee at starbuck,

Smart is over fucking rated, and this OP is just bullshit.

Sat, 11/30/2013 - 21:09 | Link to Comment carlin401
carlin401's picture

Well let's all be honest, most of us on ZH don't really have a horse in this game,

We really can't fall when YELLEN and her krugman team of 'humpty dumpty' fall off the wall, and they will.

Also QE cannot be tapered, as NOBODY else is buying US debt other than the FED, and interest rates will go up, and then so will DEBT service, and thus QE will rise to cover. Fact.

To be far away from the USA in these times is the best, but ever since the 1970's the USA economy has been an orchestrated PONZI, its days were numbered.

Yellen is just another face, and this time with Hillary Clinton being the next prez, how fitting to have a woman lead the FED, the MSM will be calling this the decade of the woman, just like yesterday was the 'decade of jive and huck'(obama).

There will be new "HOPE" with this team of women to clean-up the mess made by the boyz, but of course we all know that these 'janet reno' clones are all female impersonators of Stalin or worse.

Like I keep saying, ... stay far fucking away from the USA in the next 1-10 years, ... its going to get really fucking UGLY.

Sat, 11/30/2013 - 21:19 | Link to Comment rationaldemocracy
rationaldemocracy's picture

You think the U.S.A will collapse? I don''t think so. More likely we will invest into robots so that our former human workers can go back to building communities and egalitarian pursuits...like what good humans should be doing. The Internet was a game changer that no one predicted and so will be future technologies..your doom and gloom version of the future will not correspond to reality..but you keep hoarding that gold one day it will be worthless.

Sat, 11/30/2013 - 21:44 | Link to Comment akak
akak's picture

You know, I keep trying to find ANY evidence within your posts to justify your moniker of "rational", and I keep failing to find any.

Sat, 11/30/2013 - 21:58 | Link to Comment rationaldemocracy
rationaldemocracy's picture

I just don't like living in fear like the majority around here do, it's a disease and it's something that these people need help with. It's really very easy to fall into the trap of waiting for the apocalypse, religious people do it all the time and it seems that with even a slight hint of deteriorating economic conditions so do investors.

I think the future will be wonderful and things like gold, silver, economic fundamentals will all be made irrelevant..kind of like females having to stay at home while the husband gets to have a  career irrelevant if you know what I am trying to say.

Sun, 12/01/2013 - 17:36 | Link to Comment akak
akak's picture

When one sees a tornado approaching, it is rational to be afraid.  It is irrational to hide one's head in the dirt and "hope for the best".

Sun, 12/01/2013 - 07:57 | Link to Comment MeMadMax
MeMadMax's picture

We don't live in fear.

We educate and prepare ourselves for the posibility of two futures:

One is continued "existance" at the current clip of stagnation ala Japan's decade of frozen in time...

The second is collapse.

If we prosper, fine.

If we collapse, we were educated and prepared ourselves accordingly... and, once again, fine...

Sat, 11/30/2013 - 21:24 | Link to Comment rationaldemocracy
rationaldemocracy's picture

I would say that the majority of people who disregard
Yellen come from ‘econ bros’ who type sexist posts on the internet.

Yellen has impeccable credentials and is a first woman to hold so much financial power - this rightly scares the crap out of the testestorone laden idiots on wall street and main street who think they know best.

 

Sun, 12/01/2013 - 02:56 | Link to Comment mark mchugh
mark mchugh's picture

Janet Yellen's a schlub.

That's not my opinion, it's the opinion of her colleagues:

http://ideas.repec.org/top/top.person.all.html

These are the economist rankings at RePEc (Research Papers in Economics), a big international consortium of economists.

Yellen is currently ranked 783.

Do you have any desire to see the 783rd best heavyweight fighter in the world?  More to the point, would you like to see the 783rd ranked fighter represent America in the Olympics?

Yellen, like Mary Scharpiro, was hand-picked for her incompetance, and anyone who notices that these people are/were completely unqualified for their positions gets called a misogynist?

Intelligent women should be outraged by Yellen's appointment.  What's pathetic is that the "Girl Power" crowd cares more about gender than qualifications.

How often do you hear ‘econ bros’ complain that Pepsi is run by a woman?

Sat, 11/30/2013 - 23:25 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

Yellen's gender is irrelevant. That you place worth and deserving on such a matter shows bias and modern education indoctrination. If she were a man, I would despise her policies and plans just as much because they will destroy this country and savers like me. Perhaps you hadn't noted the vehemence directed at Bernanke here for years? Obviously having the "correct" genitalia didn't work for him. But you havent been here long. It is time to question all the copious notes you took in college and think for yourself rather than parroting ideas implanted in you by others.

Miffed;-)

Sun, 12/01/2013 - 00:23 | Link to Comment rationaldemocracy
rationaldemocracy's picture

 so attack her polices which I have yet to see people on here do.

Sun, 12/01/2013 - 07:28 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

retardationaldemocracy said:

so attack her polices which I have yet to see people on here do.

Likewise, those who support Yellen should do so based on policy, not vagina ownership status.

This rare video clip (1 min 32 sec) provides a succinct overview:

http://www.youtube.com/watch?v=4q4WM2jPv9w

Sat, 11/30/2013 - 20:03 | Link to Comment kalum
kalum's picture

Maybe in grammar. It should be smarter than I (am), not me

Sat, 11/30/2013 - 18:08 | Link to Comment AngelEyes00
AngelEyes00's picture

"And yet in just five short years we have forgotten all this wisdom and learning points and have thrown prudent risk management strategies regarding monetary policy out the window and summarily fail to recognize the Fed`s hand in creating a massively unsustainable bubble in financial markets once again."

That's the problem with bail outs - nothing is learned.  It's like catching your kid from falling to the floor.  He learns nothing until he isn't caught, hits the floor and suffers some pain.  The pain becomes the feedback from which learning can occur. 

I truly hope that in the next debacle in which numerous major corporations are on the edge of collapse, they are allowed to collapse.  Come out and give a speech that says, "In a capitalistic society businesses takes risks at their own peril.  We will not save these companies, but others will replace them."  End of story and trillions trying to do things like QE to take the bad loans off the books of banks, or any other baby ass wiping.  Just let the chips fall where they may.  And stop trying to force growth.  Either the economy can muster growth or it cannot. 

Sat, 11/30/2013 - 21:19 | Link to Comment carlin401
carlin401's picture

Soon even 'questioning' the FED will be a crime in post Fascist Hillary Clinton America,

Enjoy your freedom to 'question authority' while it lasts.

These are the times of ORWELL, and the only thing rational about the USA is not being there.

Sat, 11/30/2013 - 14:57 | Link to Comment squid427
squid427's picture

" The ONLY question she's asking is, can she make it to her exit date or not?"

I really hope it all comes unglued during her term, but I think they can keep this scam going for while logner. There is still a lot real wealth in this country to steal, and they will keep this ship upright untill they have all they can get.

Sun, 12/01/2013 - 08:56 | Link to Comment andrewp111
andrewp111's picture

Bernanke left for a reason, just like GreenSpan before him. It is a pretty good bet that he sees what is coming and wants to get out of the way. Calamity Janet will have to face it before the end of her term.

And there is a reason Obie wanted Summers. He sees something coming too, and wants a Chairman who can be counted on to bail out his favorite Cities and States.  He had to settle for his second choice, though.

Sat, 11/30/2013 - 16:19 | Link to Comment ebear
ebear's picture

"I really hope it all comes unglued during her term"

Chances are it will. That seems to be the pattern since Volker.

Sat, 11/30/2013 - 21:13 | Link to Comment carlin401
carlin401's picture

During the 'volcker' era there was still stuff left in the USA to steal.

But something funny happened by 1987 all the CASH was stolen
and replaced by paper IOU's, then to to 2013 and there is nothing real left,...

Even the BTC craze is just QE 'money' floating to 'social media' IPO's, which fuel the mania of the day.

But VOLCKER worked, cuz out of VOLCKER came raygun and out of raygun came a reason to steal all that was still worth stealing, now there is nothing left to steal,

Now the USA is just one big fucking entitlement prison, and it can only end it two ways,

1.) civil war
2.) international war,

Me thinks that the world will confine the US population and let them all kill each other, this would be the best outcome for the world.

Sat, 11/30/2013 - 14:37 | Link to Comment The Wisp
The Wisp's picture

I'll Pay ten Bucks, if Somebody will ask The Fed, on the record on Live TV..

 " Do you People Ever even read Zero Hedge ? "

Sat, 11/30/2013 - 14:21 | Link to Comment DrData02
DrData02's picture

No.  And it doesn't matter how damn dumb YOU are.

Sat, 11/30/2013 - 14:12 | Link to Comment I am Jobe
I am Jobe's picture

Sure she is , she graduated from Ivy League  School and knows what to say to attract the politicans and that is all that matters. 

Sat, 11/30/2013 - 15:00 | Link to Comment max2205
max2205's picture

Never worked with any Ivy Leaguer who was capable of any work effectively. ..but they sure knew how to discredit you and try to take credit for your work and successes. 

 

Sick brown noisier.    Adding lazy and bs artist while I am at it

Sat, 11/30/2013 - 17:38 | Link to Comment Rafferty
Rafferty's picture

Max........my experience too with Ivt Leaguers.  Seems to me that  rather than being trained in doing stuff they're trained to climb every greasy pole. And they're damn good at it. 

Sat, 11/30/2013 - 23:13 | Link to Comment JohnnyBriefcase
JohnnyBriefcase's picture

Perfect example of how people turn out when it's against policy to fail them even if they fail.

Sat, 11/30/2013 - 14:04 | Link to Comment Reaper
Reaper's picture

She will soon be called Calamity Janet. Janet wasn't trained to think. Janet was trained to follow. Intelligence is the ability to learn, think and adapt. Janet is a mindless indoctrinated robot, without capability to change the doctrine. Garbage doctrine in = garbage results out.

Sun, 12/01/2013 - 10:52 | Link to Comment kchrisc
kchrisc's picture

Ditto Obama, Bush, Clnton...

"Ignorance of the Constitution or 'following orders' is no excuse."

Sat, 11/30/2013 - 14:53 | Link to Comment max2205
max2205's picture

I am prepared and committed to trading the downside when it happens....I only hope the market crashes over two weeks and not a down 30% open....which is what I sadly feel will happen because the pricks never give you a good entry point.

Sat, 11/30/2013 - 13:50 | Link to Comment sbenard
sbenard's picture

Rapunzel Janet sits in her ivory tower, but forgets that she ain't got no long hair! And she ain't pretty, either!

Sat, 11/30/2013 - 13:45 | Link to Comment sbenard
sbenard's picture

Here, here!

Calamity is certainty. Plan and prepare accordingly!

Sat, 11/30/2013 - 13:35 | Link to Comment Popo
Popo's picture

"Pay Much More Later on down the line!"

 

She knows this too.  And so did Greenspan and so did Bernanke.   But Bernanke managed to enjoy a full term as the world's most powerful man and exit the stage without the real shitshow beginning.   Yellen wants the same thing as her predecessors and nothing more.   She's not here to create long term sustainability.  She's here to play the Game of Thrones.   The ONLY question she's asking is, can she make it to her exit date or not?   The awful and terrifying answer is "probably, yes".  What the nation will look like after she's done is something no one wants to even think about.   But unfortunately -- she probably can make it to the exit.   And that sucks for all of us.

Sun, 12/01/2013 - 01:00 | Link to Comment Diogenes
Diogenes's picture

Where do they look for the Best Before date on America?

Sat, 11/30/2013 - 13:50 | Link to Comment Marco
Marco's picture

For the moment the US can still print while foreigners keep just throwing free shit at the US, but the US at some point will have to (soft-)default on it's external debt.

If the Fed thinks that this is the last pump and dump bubble they can get away with before that happens then no, the US will not have to pay much more later down the line. They will pay the exact same thing, nothing.

Sat, 11/30/2013 - 12:23 | Link to Comment foxmuldar
foxmuldar's picture

Didn't Greenspan claim there was no bubble in the housing market just prior to its collapse?  Its nice to know Yellen is willing to continue to pump up my IRA holdings. Thanks Janet. Just don't pull the plug till I take it all out. lol

Sat, 11/30/2013 - 14:18 | Link to Comment Manthong
Manthong's picture

If you head the Fed, by default you are a lying SoS but smart and devious enough to control other peoples lives and fortunes.

Sat, 11/30/2013 - 16:05 | Link to Comment El Viejo
El Viejo's picture

If you are giving a birthday party on an airliner flying high and the compartment is full of balloons and one is labeled 'farmland' and another is labeled 'housing' and another is labeled 'student loans' and another is labeled 'stealth stock market bubble'  ... and some drunk sob thinks he's going to the restroom and accidently tries to open the exit door and there is a loss of cabin pressure which balloons will pop first??   Or does it matter??

Sat, 11/30/2013 - 16:07 | Link to Comment FinalCollapse
FinalCollapse's picture

She's too stupid to understand this.

Do NOT follow this link or you will be banned from the site!