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Janet Yellen Exposed Part 2 - Justifying Speculative Leverage
Last week, Peter Schiff began his epic take-down of the myth of Janet Yellen's forecasting ability. As proof of her wisdom supporters had pointed to speeches she delivered in 2005 and 2006 in which she supposedly issued clear warnings about the dangers then building in the frothy real estate markets. Without any attempt at reasonable fact checking, these claims have been parroted by the media.. and that is what Schiff so diligently destroyed. However, Schiff notes in this follow-up, there is a key statement she makes (in justifying the 'fundamentals' behind the housing bubble) that relates to credit and speculative leverage that is crucial to understand the way she sees the world and thus - what to expect from her Fed.
2005 San Francisco Speech excerpt (used by many to justify the fact that she may have identified the bubble)...
So fundamentals showed it was a 'bubble' but she justifies it on the basis of the fact that HELOCs created more liquidity in home value - thus creating yet more speculative leverage (right in front of her face...)
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The market's up. The VIX is down. What's the problem?
I said it first and I'll say it again:
Janet Reno
Janet Napolitano
Janet Yellen
I see no problem.
/sarc
NICE! Triplet janets from other planets.
They're not All My Children
CW
What is the character of a person who takes a job knowing that she got it because nobody else wanted it and that in order for her to be “approved” her handlers have to lie about her past?
Is that an ethical person, a person of integrity?
If there any psychologists out there, please provide a narrative of such a profile.
Mocha,
I agree with your accessment of JY. But do you truly believe in the DSM?
Dammit Janet.
"Janet, you are ignorant slut" - Dan Akroyd on Point to Counter Point (back when SNL is funny)
Eva Braun....or the Whore of Babylon ?
not a psychologist, but you make a great point. more and more enormous jobs in government keep going to the mediocre and compliant. there are dazzling intellects behind them making the decisions, but the quality of frontperson continues to erode almost to the joke level. look at the clown show that testified about the obamacare IT meltdown (on both sides of the mike) they come, they play there part, whatever happened to consequences for anything? or the concept of best and brightest?
Flicker like dim incandescent bulb, to be replace by mercury saturate cold fluorescing tube.
All we'll need is one more and the country will goes tits up...wait – Janet Jackson.
Haha, you very smart funny with reference to malfunction of wardrobe!
It's sort of like saying a lot without saying anything at all, sort of like all non-boat-rocking academic economists. On the one hand prices are high. On the other hand it may justified and not a bubble. On the other hand, they're not justified, and without going out on a limb because I'm nothing more than chart-gazing reactionary academic, policy-makers, i.e. my buddies, should take a look at it.
She probably re-reads that speech and thinks she said something profound.
Breaking News:
NSA monitored calls of 35 world leadersThis is huge and will have massive consequences both political and economic. How many are being blackmailed today? Come on Zero Hedge, get on with the program
http://www.theguardian.com/world/2013/oct/24/nsa-surveillance-world-leaders-calls
http://rt.com/usa/nsa-monitored-world-leaders-692/
<gasp!> Spying with the equipment you sold us! (and we spied back...speak slowly and clearly into this block of cheese.) <gasp!>
Then a feather blew in and knocked the bunch of them over.
Nobody will be buying US tech equipment for years. Yellen will be printing hundreds of billions a month for years to come.
Brazil building USA-free internet:
Brazil plans to divorce itself from the US-centric internet over Washington’s widespread online spying, a move that many experts fear will be a potentially dangerous first step toward politically fracturing a global network built with minimal interference by governments.
President Dilma Rousseff has ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the US National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company’s network and spied on Brazilians who entrusted their personal data to US tech companies such as Facebook and Google.
“The global backlash is only beginning and will get far more severe in coming months,” said Sascha Meinrath, director of the Open Technology Institute at the Washington-based New America Foundation think-tank. “This notion of national privacy sovereignty is going to be an increasingly salient issue around the globe.”
While Brazil isn’t proposing to bar its citizens from US-based Web services, it wants their data to be stored locally as the nation assumes greater control over Brazilians’ internet use to protect them from NSA snooping.
Ms. Rousseff says she intends to push for new international rules on privacy and security in hardware and software during the UN General Assembly meeting later this month.
http://www.thehindu.com/news/international/world/brazil-plans-to-go-offline-from-uscentric-internet/article5137689.ece
BRICS Countries Build New Internet to Avoid NSA SpyingFiber optic undersea cable bypassing U.S. to be completed by 2015
http://www.infowars.com/brics-countries-build-new-internet-to-avoid-nsa-spying/
It would change the shape of the cloud nearly instantly. Cross network tariffs are what come right after. Basically IT companies need to decide which side of that wall being built they want to be on. Inside the wall is the US being bricked in. Outside the wall is everyone else doing business.
Kanata, Ontario, Canada has lots of occupancy with tier one fibre cabled buildings with practically everything that are empty for a tenth in the rental costs in comparison elsewhere/ With the resident professionally trained and senior labour work force and international ties to build anything required in any language on the planet. Nortel, Mitel and the other Telco's left some pretty cool stuff behind for dimes on the dollar.
Don't be inside when the cable is dropped, no one will listen.
There is no inside/outside. In fact there is no wall between Us and the others, the wall is out there with us all walled in. PTB made sure of that.
Is there any guaranty that non-US suppliers will NOT built in any devices? At least now that it's "exposed" you know what and perhaps how to deal with, no?
W.r.t. Canada, imho, one should ponder why its hi-tech crumbled (and Nortel failed, no)? No escape. It's an one-world system, despite short-term glitches (in a way it's good that so many "not acceptables" are exposed).
btw, it's not JY, et al that is not suitable (by muppet standard?), rather it's the Fed that is not right for us ! How can anyone expect any'body' head the Fed would do good (what's that), really?
That would have been channel stuffing, lying about who was buying stuff and allowing knuckle heads in the brokers pits determine the market on four talking heads advice. These are the same dickheads that funnelled investors into dot.bombs, then turned around and ate the legitimate IT businesses that actually produced stuff. Best short ever on poorly managed companies.
As a business requirement though: Kanata is still full of empty buildings that would meet or exceed any multinational IT group's requirements with business contacts, manufacturing and production capabilities on location. Plus the rent is way cheaper than places like San Francisco, NYC, Chicago, Tristate.
For supply and manufacturing. Remember that it's all outside the US now anyways. It would only be a formality to where a CEO plants their ass in the morning. It happened so slowly, inch by inch, that no one even noticed. Now everything is in position.
Again, don't be on the other side of the the doorless brick wall once all the cabling is done and the announcements are made. Besides in two years the entire coast line of the West Coast will be a radioactive ruin. Options are limited regardless of the business situation for a US company right now. The clock is ticking and you can't buy time back.
I spy with my all seeing eye something that starts with unfair and ends with trade advantage.
How much wealth have people privy to all this "intelligence" stashed away over the years? i suspect it's a good sized pile of loot at this point. Of course also financing a few for profit black budget bonanzas for good measure.
Hey NSA, what ever happened to those trillions the pentagon said they had lost track of on 9/10 2001?
Blah, blah, blah...It's all Bullshit!!! This clown has been saying the same crap for 5 years. Some day he may be right about something but not holding my breath.
He was right about the housing bubble.
He was right about Yellen getting nominated.
He was right about "No taper" in September.
No need to hold your breath.
No, he should hold his breath...indefinitely.
Schiff has got stuff wrong, my view is that the current economic paradigm is completely irrational & unpredictable, like say..... a Ponzi scheme, therefore you are likely to be right half the time regardless. But he's got it more right than most.
Yeah, he said gold would be up over 2k and rising by 2010, and on it's way up to 5k soon after.
Not so much.
I guess he didn't count on the paper manipulation to the extent that it has occurred. Who can fault him for that?
Obama has to boast about Yellen because she'll provide all the printed money for all the spending he wants.
Right now any spending limit is gone. Obama can spend as much as he wants.
Now, lets sing along with Ms. Debtfire
Ring around the bubble
I don't see no trouble
Fiat, fiat
We all go down
Wheeeeeeee....was'nt that fun? Lets do it again...
He's right, they are blind dumbasses and this will end badly in the not too distant future.
Thanks to the expeditious dumbass leaders...lol leaders.
I know, not blind. Well organized decline
Thank you, Peter, hopefully some other voices of sanity will join you. In the end you will be vindicated, even if our 'leaders' are beyond redemption and the ship goes over the falls.
and we thought Helicopter Ben was great comic fodder!
seems we all know what to expect. the remaining question though is can we expect to see yellin go down with the ship?
OK, all you artists out there I have a great cartoon idea. have yellen in overalls, up on a ladder hanging sheets of dollar bills like wallpaper. then we can assign her first moniker: Yellin the paper hanger.
Peter Schiff for Fed Chairman!!!!!!!
End the Fed.
End the federal reserve note
Peter Schiff = Right winged crank gold bug who has lost millions in his Pacific fund. You clowns on here believe this goofball? What a bunch of wingnuts hang out here!
Haven't posted in awhile. Had to come out to expose this charlatan Schiff. He claims to have been the great oracle to have predicted all the ills in our current economic climate, lol.
Peter Schiff has Leveraged his reputation on being Ron Paul's 2008 economic advisor, having seen the real estate bubble before anyone else and attributing it all to the flawless economic school that is imunne from criticsm "the Austrian School".
The must disingunious aspect of Schiff is he has over the past half decade plus given horrible investment advice to young impressionable Americans that bought into the Ron Paul hysteria and were upset with the status quo (Republicrats and Demicans). "Don't worry about your mortgage", "Rack up as much debt as possible"- Schiff says. "Hyper-Inflation will wipe it away", "Gold and Silver will protect your purchasing power no matter what"!
Schiff said we had a real estate bubble yet failed to protect his clients from the devistating fall out of the "Great Recession"
http://globaleconomicanalysis.blogspot.com/2009/01/peter-schiff-was-wrong.html
As of a few months ago Peter Schiff has admitted to losing millions of his personal fortune investing in Gold.
http://www.youtube.com/watch?v=Ox34bOw9MUg
He had continued to doom about the US economy since the 'nominal' botton in mid 2009. Never mind if you agree with the fact the economy is recovring, he has said AVOID US at all costs. Wrong
http://www.youtube.com/watch?v=sjCl6Oq5tCI
http://www.youtube.com/watch?v=l3qxjTl1TJo
Am I upset with the status quo? You bet!
I just cannot sit idly by and watch honest hard working people's financial well-being be destroyed by these charlatans like Schiff trying to take advantage of common ignornance and misunderstanding of the financial system in effort to line their own pockets.
People are blinded by "Schiff was right in 2006" and take everything he says as gold, pun intended. Guy has been dead wrong for almost everything for the past 5 years. Back in 2009 his customers imagined USD wouldn't even exist by now and people would be buying groceries with his Valcambi gold bars.
Thought this was about Yellen! By the in depth responses, you would think the article is about Schiff. Straight from Saul Alinsky playbook, most of these responses.
maybe she was just trolling.
Not critiqueing, but I think we're reaching a point where all of this is just preaching to the converted. It doesn't seem anyone from the Fed deigns to lend an ear to the rabble rousing of market participants. It's quite clear that they are set on pursuing their course, no matter how wrong, no matter how disastrous to the very fabric of society and the political stability of the country, at all costs. Just so a few investment bankers and corporate cunts can have 100 instead of 50 bathrooms; 100 cars instead of 60 and 3 private jets instead of 1.
So fuck them.
There is no choice other than for Central Banks in cahoots with Governments to print more fiat. The "growth" model the world uses requires it.
The current situation will continue indefinitely. Some international issue (war) or maybe populist uprisings could impact it or some environmental catastrophy (fukishima) but until that happens printing will continue with corporations and their leaders growing richer and richer.