A Giddy Wall Street (And Maxine Waters) Praises The New Fed Chairwoman

Tyler Durden's picture




 

Today 3:00 pm nomination by Obama of Janet Yellen as the next Fed chair was hardly news (certainly wasn't news to stocks which briefly dipped below their 200 DMA) in the aftermath of Larry Summers' self-elimination, but nonetheless the sellside brigade was quick to praise her now official nomination for one simple reason: it means more of the same Bernanke policies that have done nothing to benefit broad America, but more importantly have resulted in year after year of near-record Wall Street bonuses, and unprecedented asset bubbles. Why shouldn't the banks then be giddy with excitement that the status quo will not only continue, but the monthly $85 billion in liquidity may in fact increase in time? Below is a selection, courtesy of Bloomberg, of the most vocal praises sung on behalf of the former San Fran Fed president byt the numerous banks that currently exist only thanks to the Fed's actions in 2008.

Citi

  • FOMC hawk voices to affect rates moves less going forward as Yellen appointment maintains view of dovish Fed for longer
  • FOMC minutes from Sept. 17-18 meeting expected to be broadly balanced between hawks, doves

David Kotok, CIO, Cumberland Advisors Inc

  • Yellen nomination likely to be greeted well by mkt agents
  • “Market-calming” effect to be short-lived * Yellen to proceed slowly on any taper policy

FBR Capital Markets

  • Yellen nomination is “as close to a sure bet as it comes” and makes it likely current accommodative monetary policies of Fed will continue
  • Expect some Republican opposition due to Yellen’s support of current Fed policies; sees near-universal Democratic support

Goldman Sachs

  • Yellen “optimal control approach” is one reason to expect a late Fed exit with the first funds rate hike in early 2016

Guggenheim

  • “Republicans risk alienating women if they get too aggressive” trying to block Yellen nomination
  • Yellen “very qualified,” would be first female Fed chairman
  • Yellen may offer Feb. “surprise,” cut QE more than expected as early as end-Jan. in response to views she’s inflation dove

Jim O’Neill, former chairman of GSAM, Bloomberg View columnist

  • Yellen means more dovish Fed policy at the margin, “unless there’s some surprise jump in inflation expectations”
  • “I would imagine for the rest of the world, and particularly the beaten-up emerging world, it’s kind of good news”

Morgan Stanley

  • USD  may weaken if FOMC minutes today show structural shift transition toward a more dovish “Yellen Fed”
  • FOMC minutes take on extra significance today

And as a bonus, here is Li Daokui, former People’s Bank of China academic adviser. He does not sound quite as excited as the other praise singers for the simple reason that Yellen's ongoing crushing of the dollar means that the pegged Chinese currency will continue to appreciate if only in USD-relative terms.

  • Yellen
    appointments will lead to “prolonged period of appreciation” for the
    yuan because of a “relatively longer period” of expansionary U.S.
    monetary policy
  • Yuan to appreciate 1% by end-2013

Finally, perhaps confirming "all you need to know" here is Maxine Waters.

Congresswoman Maxine Waters (D-LA), Ranking Member of the House Financial Services Committee, released the following statement in anticipation of the nomination of Janet Yellen as Chairman of the Board of Governors of the Federal Reserve.

“President Obama’s choice in nominating Janet Yellen to lead the Fed is both historic and important for our nation’s economy. Ms. Yellen’s experience as a former Chair of the Council of Economic Advisers, Regional Fed Bank President, and Vice-Chair of the Federal Reserve make her one of the most people ever to be nominated. 

 

Ms. Yellen has demonstrated a unique understanding of the impact of the Federal Reserve’s policies on the middle class, particularly the crucial balance between stable prices and low unemployment. During the crisis, she advocated for the urgent need to implement financial reform quickly in order to avoid another meltdown. As Chair, I am hopeful that Ms. Yellen will continue to push for policies that address the still unacceptably high rate of unemployment.

 

Over the past several years, we have seen Ms. Yellen’s judgment on the economy validated time and again. Because predictions about the future strongly impact Fed policies, this is crucially important. When many economists were optimistic about unprecedented growth in the economy – she saw the bubble for what it was and predicted disaster in the banking system.

 

In addition to her impeccable qualifications, her institutional knowledge and working relationships with current Board members would provide for a smooth transition at a critical time for the U.S. economy. 

 

In the interest of stability at this critical time for our economy, I urge the Senate to quickly confirm Ms. Yellen.”

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Wed, 10/09/2013 - 12:44 | 4038238 hedgeless_horseman
hedgeless_horseman's picture

 

 

Inflation is a non-progressive tax.  Everyone that holds USD pays it.

Wall Street approves.

Wed, 10/09/2013 - 12:46 | 4038243 King_of_simpletons
King_of_simpletons's picture

Greed on Steroids.

 

Wed, 10/09/2013 - 12:46 | 4038249 Herd Redirectio...
Herd Redirection Committee's picture

Whats good for the goose is good for the gander.  With that being said....

MOAR!  I want MY QE!  If Yellen doesn't meet my moneyprinting needs I will fire up the printer in the basement.

Wed, 10/09/2013 - 12:57 | 4038292 MillionDollarBonus_
MillionDollarBonus_'s picture

This is a historical landmark for womyn's rights. For centuries, women have had to endure endless discrimination by the oppressive white male patriarchy which persists to this day. Finally a womyn has the opportunity to assume this truly honorable position of leadership that until today has been reserved exclusively for men. I am confident that Janet Yellen will be an effective chairman and do all that she can to achieve maximum employment and price stability not just for the white patriarchy, but also for wymyn and minorities.

http://accredited-times.com/2013/10/08/why-unions-are-the-champions-of-a...

Wed, 10/09/2013 - 13:02 | 4038320 Mercury
Mercury's picture

Hope she does better than this AA hero: http://en.wikipedia.org/wiki/Kara_Hultgreen

 

Wed, 10/09/2013 - 13:07 | 4038343 12ToothAssassin
12ToothAssassin's picture

She hasnt even been nominated OR confirmed yet ???

Wed, 10/09/2013 - 13:09 | 4038358 Mercury
Mercury's picture

Consider it done.

 

The point is she's either the best choice or she isn't. Period.

Wed, 10/09/2013 - 13:11 | 4038371 john39
john39's picture

up next, hitlary clinton, psychopath, as president.   its an NWO thing... time to put  aesexual women in positions of (false) apparent power around the world.

Wed, 10/09/2013 - 13:18 | 4038391 hedgeless_horseman
hedgeless_horseman's picture

 

 

Goldman

  • Our Research Department strongly believes Yellen would bring a much needed toughness to the Chairman's position

Wed, 10/09/2013 - 13:20 | 4038421 Billy Sol Estes
Billy Sol Estes's picture

Face could stop a train

Wed, 10/09/2013 - 13:26 | 4038447 Intoxicologist
Intoxicologist's picture

Face could make an onion cry.

Wed, 10/09/2013 - 13:33 | 4038470 Sofa King Confused
Sofa King Confused's picture

Looks like her face caught on fire and somebody put it out with a sledgehammer.

Wed, 10/09/2013 - 13:45 | 4038509 Anusocracy
Anusocracy's picture

She looks like Yoda with his ears tied behind his head.

Wed, 10/09/2013 - 13:45 | 4038520 Enslavethechild...
EnslavethechildrenforBen's picture

Looks like a vagina is going to counterfeit for a change.

Wed, 10/09/2013 - 16:00 | 4039012 Manthong
Manthong's picture

If an event horizon was ugly and stupidity was gravity..

Maxine Waters would be a _____ ____ . (fill in the blanks)

Thu, 10/10/2013 - 12:33 | 4041842 12ToothAssassin
12ToothAssassin's picture

Dupe

Wed, 10/09/2013 - 13:45 | 4038516 chubbyjjfong
chubbyjjfong's picture

Looks like someone pushed her face into dough to make gorilla cakes.

Wed, 10/09/2013 - 15:39 | 4038951 ParkAveFlasher
ParkAveFlasher's picture

Looks like she fell out of the ugly tree and hit every branch on the way down.

Wed, 10/09/2013 - 21:08 | 4039914 akak
akak's picture

And burrowed right into the soil afterward, smacking every major root along the way, until she hit bedrock and the earth recoiled in horror, vomiting her back to the surface.

Wed, 10/09/2013 - 13:28 | 4038456 Anusocracy
Anusocracy's picture

Looks like it already has.

Wed, 10/09/2013 - 13:34 | 4038475 Herd Redirectio...
Herd Redirection Committee's picture

It looks like Jamie Dimon in a wig.  Seriously.

Wed, 10/09/2013 - 15:06 | 4038776 auntiesocial
auntiesocial's picture

I just googled Janet Yellen nude...

Wed, 10/09/2013 - 15:33 | 4038928 Serfs_Up
Serfs_Up's picture

ghouls will be ghouls..

Wed, 10/09/2013 - 21:00 | 4039886 fooshorter
fooshorter's picture

Mother Of God.

 

 

 

Wed, 10/09/2013 - 14:16 | 4038611 BigJim
BigJim's picture

 Ms. Yellen’s experience as a former Chair of the Council of Economic Advisers, Regional Fed Bank President, and Vice-Chair of the Federal Reserve make her one of the most people ever to be nominated.

You hear that? She's one of the most people ever to be nominated!

Though I'm pretty sure Larry Summers would have been even more people, at least from a volumetric standpoint.

Wed, 10/09/2013 - 14:26 | 4038637 Pairadimes
Pairadimes's picture

One way to be certain that something is a bad idea is to discover that Maxine Waters approves of it.

Wed, 10/09/2013 - 13:12 | 4038383 General Decline
General Decline's picture

Well I think we should all give Janet "double flush" Yellen the welcome she deserves.

 

Fuck you Janet

Wed, 10/09/2013 - 13:09 | 4038364 THX 1178
THX 1178's picture

Janet'll take the rap 

for the upcoming collap

Bernanke: Goodnight sweet prince

I'm going to miss the "Fuck you bernankes"

But "Fuck you yellin" has a certain ring...

Wed, 10/09/2013 - 13:18 | 4038418 Meat Hammer
Meat Hammer's picture

Yellin rhymes with felon.

Wed, 10/09/2013 - 13:47 | 4038519 cameldojo
cameldojo's picture

looking forward to the limerick king prose

Wed, 10/09/2013 - 16:16 | 4039060 victor82
victor82's picture
  1. Who wants to fit her for her Orange Jumpsuit?
  2. Will she use Helicopter Ben's?
  3. Yes, she is the one stupid enough to take the Job, and the Fall. Ben knows that it's Better in the Bahamas.
Thu, 10/10/2013 - 07:38 | 4040767 DanDaley
DanDaley's picture

These people are corrupt and will never, that is NEVER take any responsibility for anything.

Wed, 10/09/2013 - 13:09 | 4038355 nope-1004
nope-1004's picture

Dude looks like a lady.

 

Wed, 10/09/2013 - 13:41 | 4038493 BobPaulson
BobPaulson's picture

Best androgyney joke so far.

Wed, 10/09/2013 - 13:16 | 4038395 ndotken
ndotken's picture

Maybe I'm wrong, but it looks to me that if Ben shaved his beard and put on a wig, then he'd look just like the "woman" in the picture.  Hmmm ... would they have ... ???

Wed, 10/09/2013 - 13:10 | 4038361 Billy Sol Estes
Billy Sol Estes's picture

Resist We Much

Wed, 10/09/2013 - 13:17 | 4038414 Stoploss
Stoploss's picture

MOAR VAGINA............................                    

You may have it all, please.. They are with out morals anyway.


Wed, 10/09/2013 - 13:21 | 4038429 smartstrike
smartstrike's picture

Tell it to the Brits who had to endure Margret Thatcher and the impact she made on monetary poilices of Hedge Fund western economies.

Wed, 10/09/2013 - 21:08 | 4039915 logicalman
logicalman's picture

I lived in Sheffield when the wicked witch was at work in the UK.

Steel city in a coal mining region.

The bitch killed steel and coal.

The joke at the time was that she did more harm to Sheffiled with a pen than Hitler did with bombs.

If there is a hell, she is certainly deserves to be in one of the hotter parts.

Wed, 10/09/2013 - 22:26 | 4039804 Radical Marijuana
Radical Marijuana's picture

Hah! One really must wonder about what level of seriousness MillionDollarBonus_ actually operates at, when posting such platitudinous comments! What racial "equality" and sexual "equality" actually amount to under the still established BANKSTER SYSTEMS, is the right to be robbed equally or the right to be an equal puppet for the banksters.

"Women's Liberation" was highjacked, and skillfully exploited to be turned into its opposite, by people like Edward Bernays, and his ilk. The women who were leaders in that movement often had to be at least twice as competent as the usual available men, in order to do what those men would have otherwise done. Most of "women's liberation" actually ended up doing the same stupid things as men used to do, only more so.

Obviously, the same comparison could be made to Obama becoming another in the long line of Presidents who were banksters puppets. It was supposed to be some kind of break through for civil rights. However, the actual social facts all indicate that claim is ridiculously opposite to what has actually happened.

Having people who are members of historically disadvantaged groups become the symbolic figureheads of the established power systems, which are currently primarily the expressions of the banksters legalized and privatized financial frauds, enables those systems to continue being camouflaged, or concealed, with arguments that criticisms of those systems have become racist or sexist.

Putting in a half black President in place as a bankster puppet, or putting in a women as the figurehead of the Federal Reserve Board, does not change anything significant, other than provide new sets of rhetorical tricks when defending those entrenched frauds.

http://www.tomatobubble.com/id354.html

The old "white patriarchy," which evolved from the selections of the history of patriarchal militarism, has devolved to become based on abstract numbers operated by algos. The deeper crucial developments are the ways that frauds have runaway to become automated, where the basic numbers are NUTS, and the systems merely become automatically more NUTS, no matter who the figureheads are, like the hood ornaments on that runaway fascist plutocracy juggernaut, which is going turn turn most of the world's flesh and blood beings into its road kill.

P.S.

I just got around to watching

http://www.youtube.com/watch?v=y-IemeM-Ado

Hidden Secrets Of Money Ep 3

- Dollar Crisis To Golden Opportunity

- Mike Maloney

A lot of that video is a review of the rapid destruction of the American Dollar as the world's reserve currency, which seems clearly to be part of the deliberate agenda of the international banksters that own the Federal Reserve Board. That video goes through the quicker and quicker steps in that process, which Yellen is now probably being coached to quarterback, as she throws the game.

Although the basic concept of making "money" out of nothing, as debts, is always astonishing to wrap one's head around, the invention of credit cards always struck me as one of the most astonishing ways that advanced. At around the 23 minute mark is an interesting chart indicating how credit cards added to money-as-debt. Private banks issuing credit cards
amounted to automated financial frauds, distributed to anybody who was able to get some of those cards!

I also liked how the series of charts shown in that video zoomed back, and back, so the exponential growth of the money supply could be better shown. All features in the old charts, measured in millions then billions, disappear from being seen when the new charts are in trillions!

Old-fashioned guys like Mike Maloney may well be relatively successful within the established systems, and provide good actionable intelligence to those operating within those systems. However, unless there are some rapidly emerging new energy technologies, none of which have been so far proven to be able to be scaled up, then the coming collapse to chaos will surely result in mass murder.

Although quite worthwhile to watch, to gain some perspective on the Federal Reserve Board, a preposterous thing that Mike Maloney asserted at around the 1:30 mark was: "Wealth is never destroyed, it is merely transferred."

That seems like an insane statement when "wealth" was the ability to transform natural resources into garbage and pollution, as fast as possible, which was destroying "wealth" at an exponential rate!

Wed, 10/09/2013 - 12:58 | 4038299 knukles
knukles's picture

So good old Maxine thinks somebody's gonna tie her shoes for her now? 
What praise!

About the last person you want in your Peanut Gallery

Wed, 10/09/2013 - 13:02 | 4038323 101 years and c...
101 years and counting's picture

i'm praying the fat cow had a few abortions while in college and the republicans are able to dig it up.

Wed, 10/09/2013 - 13:05 | 4038344 rpboxster
rpboxster's picture

Dude...nobody hit that.

Wed, 10/09/2013 - 13:11 | 4038384 bread n circuses
bread n circuses's picture

...make her one of the most people ever to be nominated...

Freudian slip or bad grammar?

She is definitely more people than Greenspan, Paulson or Bernanke.

Thu, 10/10/2013 - 07:30 | 4040755 DanDaley
DanDaley's picture

No Freudian slip...Waters IS a moron.

Wed, 10/09/2013 - 13:04 | 4038325 Herd Redirectio...
Herd Redirection Committee's picture

I actually believe this is what Maxine said "one of the most people ever to be nominated. "

Maybe theres a typo or word missing, but maybe its just a Maxine Waters quote!

Wed, 10/09/2013 - 13:05 | 4038331 yogibear
yogibear's picture

The government freeloaders now have a sugar lady. Old Yellen will provide all the candy they need in Obamaland and on Wall Street.

All until the US dollar crashes and burns.

Wed, 10/09/2013 - 13:06 | 4038336 g'kar
g'kar's picture

Amen

Wed, 10/09/2013 - 13:47 | 4038526 NidStyles
NidStyles's picture

I had forgotten that good ole' Maxine existed. Shows how relevant she is in the grand scheme of things I guess....

Wed, 10/09/2013 - 14:19 | 4038620 Winston Churchill
Winston Churchill's picture

Must have swallowed her gag.

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