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"Yellen Has Ensured An Equity Market Crash Is Inevitable"

Tyler Durden's picture





 

Authored by Guy Haselmann of Scotiabank,

FED – Encouraging the Melt-Up Trade, While Regulating Bubbles Away      

The Fed moved ‘all-in’ in 2008/09 when it pushed rates to zero and embarked on QE. Since the Fed basically used its final chips via this action, it became trapped playing ‘this hand’ until the bitter end. The stakes are enormous and grow over time. The only way the Fed can ‘win’ is – as Yellen said today – “to do everything possible to promote a very strong recovery”. Tapering too soon could be calamitous toward this objective. Yet, the longer it continues, the more the risks aggregate.  However, Yellen seemed to calmly indicate today that any unintended consequences or dangers to financial stability are worth the risk.

There is an inability, and lack of good options, for providing any additional monetary or fiscal accommodation, should the economy weaken or should a global crisis arise. This is what makes the Fed’s current policy experiment such a high-stakes experiment. Here is why policy-makers are in such a predicament:

Every economic or business cycle decline over the past three decades has been met with the same response: monetary or fiscal stimulus.  Policy makers have been quick to offer accommodation, but they have been slow to withdraw the stimulus which is always politically more difficult. 

 

Fiscal accommodation over the years has resulted in large deficits and debt which are now leading to contentious discussion about how to reel them in.  

 

Monetary authorities have stair-stepped the Fed Funds Rate down, but eventually hit zero and ran out of room.

 

Effectively, both stimulatory mechanisms are broken.

Yellen had to field several questions about potential market bubbles, but she deflected them aggressively saying that she did not believe that “bubble-like conditions” existed.  Whether she believes that or not, it would have been counter-productive for her to admit it.  She mentioned that should bubbles begin to form, the Fed has the regulatory tools to control them.  She can’t possibly believe this (or can she); but regardless, she must try to convince the market that the Fed is monitoring them and can contain them.

Basically, she has given the market the green light to “melt-up”.  The only question is how much higher will the Fed’s ‘gift’ drive prices? She indicated the Fed has no choice but to continue with this policy until it succeeds (or will it ultimately fail?).

 

As perverse as this seems, Yellen likely ensured that an equity market crash (someday) is inevitable.  Yellen’s failure to acknowledge any signs of bubble-like conditions encourages more risk-taking and speculation.  Therefore, this fact, combined with her hints of a continuation of policy, should lead to a bubble; if one hasn’t been created already.  And, all bubbles eventually pop.

 

Alternatively, it is possible that Fed policy fails and economic growth begins to slip. In this scenario, a significant re-pricing (lower) of financial assets would occur.

 

Since banks are in a much stronger position today than in 2008, the Fed probably has limited concern about a market crash - as long as the banking system remains healthy.  The Fed probably doubts a crash could be as bad as 2008, and it know it know possesses a slew of liquidity facilities (established in 2008) which could be implemented quickly if necessary.

“The question isn’t who is going to let me; it’s who is going to stop me.” – Ayn Rand

 


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Thu, 11/14/2013 - 20:25 | Link to Comment VD
VD's picture

no fucking shit. BUT if you listened carefully to the hearing today you'd have noted that several individuals cited their private talks and specifically referenced Yellen discussing possible bubbles as in the making.

Thu, 11/14/2013 - 20:47 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

That bitch fell out of the ugly tree & hit every fuckin branch on the way down...

Thu, 11/14/2013 - 20:49 | Link to Comment walküre
walküre's picture

They will not allow the market to crash because it would be their end and they know it. Nobody would be allowed to capitalize on a crash as the subsequent investigations demanded by all involved would make the Spanish Inquisition look like a picnic.

There's no benefit to them for a crash = no crash

But I'm not betting money on this either way.

Thu, 11/14/2013 - 23:15 | Link to Comment flacon
flacon's picture

“The question isn’t who is going to let me; it’s who is going to stop me.” – Ayn Rand

I have that quote on a T-Shirt. 

 

 

Fri, 11/15/2013 - 08:07 | Link to Comment StychoKiller
StychoKiller's picture

[quote] saying that she did not believe that “bubble-like conditions” existed.
[/quote]

I don't believe that Unicorns can poop out skittles, but the rest of the World is carrying on like they do!

"You can ignore reality, but you cannot ignore the consequences of ignoring reality!" -- Ayn Rand

Fri, 11/15/2013 - 08:23 | Link to Comment kralizec
kralizec's picture

What is with this fuckin' Yellen?!

I'm gonna be using this line a lot!!!

Thu, 11/14/2013 - 21:43 | Link to Comment asteroids
asteroids's picture

Remember, she's been at the FED for 30 years. She bears some responsiblility for the last three crashes, she'll be totally responsible for the fourth!

Thu, 11/14/2013 - 22:15 | Link to Comment Oldwood
Oldwood's picture

Optimism is always forgivable when trying to pull the wool over the eyes of the sheople. Delusional optimism rather than lying their fucking asses off....all to save us!

Thu, 11/14/2013 - 22:59 | Link to Comment MontgomeryScott
MontgomeryScott's picture

"As perverse as this seems, Yellen likely ensured that an equity market crash (someday) is inevitable."

"Optimism is always forgivable when trying to pull the wool over the eyes of the sheople."

Somewhere over the rainbow
Way up high,
There's a land that I heard of
Once in a lullaby.

Somewhere over the rainbow
Skies are blue,
And the dreams that you dare to dream
Really do come true.

Someday I'll wish upon a star
And wake up where the clouds are far
Behind me.
Where troubles melt like lemon drops
Away above the chimney tops
That's where you'll find me.

Somewhere over the rainbow
Bluebirds fly.
Birds fly over the rainbow.
Why then, oh why can't I?

If happy little bluebirds fly
Beyond the rainbow
Why, oh why can't I?

WHEN (not 'IF') the crash comes (and, it is coming REALLY FAST now), I think that there will be apologists for those responsible. They will say that those who were 'optimistic' were trying to 'protect us' from 'bad stuff'. Instead of trying to warn their fellow man-kinders and urging them to prepare to survive this, they will say, affectionately, while YOU are breathing your last, 'I'M SORRY' (much like Obama does regarding 'Obamacare').

 

Oh, SHIT! A YELLEN APOLOGIST has appeared here, IN REAL TIME ('Oldwood')!

Maybe Murdoch and the others have had some luck with the collapsibles, up on the well deck! Lightoller is heading that way...


Thu, 11/14/2013 - 20:41 | Link to Comment Deathrips
Deathrips's picture

No shit sherlock..

 

Its a bit irritating to be saying this for years...and now some douche comes in and hes the expert?

 

Hey dickhead..you work at a fiat bank.

 

RIPS

Thu, 11/14/2013 - 21:13 | Link to Comment gjp
gjp's picture

And he says the banks are in much better shape, less crash isk, and fed tools will minimize impact. Sounds like the usual horseshi.

Thu, 11/14/2013 - 20:26 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

I think the Fed's "slew of additional liquidity facilities" means we've rendered the stock-market cycle obsolete.  

Thu, 11/14/2013 - 20:28 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"I don't see no stinking bubble......and I never will." - Yellen

Fri, 11/15/2013 - 08:57 | Link to Comment GCT
GCT's picture

That is until it pops CD!  Then she will go before Congress and state no one in their right mind can see financial bubbles!

Thu, 11/14/2013 - 20:32 | Link to Comment ArmyofOne
ArmyofOne's picture

Its the post pop world that need's to be fleshing out.   If its print or bust what the fuck does bust look like?

Thu, 11/14/2013 - 20:39 | Link to Comment WhackoWarner
WhackoWarner's picture

I read a pretty smart commentator on the Kitco forums for years before he bowed out.  For good reason.

Gist of his conclusion was "when to sell gold?"  Maybe when it buys 2 X Dow.  Question was asked over and over how high is that?  Reply?  Maybe 20K.

Said also may time to consider switch of gold to other assets when Dow is par with gold/oz.   So maybe we go way way way higher yet.  But the price will be paid.

Thu, 11/14/2013 - 20:44 | Link to Comment WhackoWarner
WhackoWarner's picture

Also from the Q&A seesionsof Jim Sinclair.

 

Notes only:

new currency system 2020

basket of currencies with a necklace of gold around it’s neck. Said this on three different occasions. I am going to follow up with him on this. He referenced freegold and how they are the closest to the idea but not quite there.

A lady asked several questions and her last was point blank. "How do you know 2020 is the date"

Jim’s answer I think blew everyone away

He said I am of the Goldman lineage. I ran in the circles of the people that own the world and still converse with them and this is what they told me. They own Washington (sidebar, grand caymen has not been attacked for its banking laws , cause that’s where Washington hides it money)

Thu, 11/14/2013 - 20:49 | Link to Comment WhackoWarner
WhackoWarner's picture

I take nobody's opinions without scrutiny.

 

But hey ho it is 2013?   2020 is a long way off.  Unless you use it to stack tangible, real assets.  farmland, gold,  puppy dogs, cats,  reserve food, happiness, insight and hope,

 

Thu, 11/14/2013 - 20:44 | Link to Comment Julian
Julian's picture

Post Bust? Lots of printing then the threat of collapse of USD and loss of its reserve status due to monthly QE of $1T will lead to war

Thu, 11/14/2013 - 20:36 | Link to Comment Quinvarius
Quinvarius's picture

I find it odd that there are still people who appear to have no idea how are financial system operates.  They seem to believe QE can ever be stopped or the Fed's balance sheet can unwind.  There has never, ever, been any possible outcome but hyperinflation in this system.  I don't understand why people are in such friggin denial over this.  What is the other alternative?  Letting the banking system, the government, our economy, and our monetary units all implode together?  All you need to do is to accept that 1 trillion is the new 1 billion.  There is no going back.  The system requires ever increasing amounts of currency or the people in power with the printing presses lose all control and and all their wealth.  They have been doing what amounts to QE since at least the Korean war.  All that happened in 2008 is that we goy kicked 15-30 years into the future on the how "much do we need to print every year" curve.  In 50 years we will be having this same discussion about quadrillions instead of trillions.  Rejoice that there are dumbasses selling gold to you cheap.

Thu, 11/14/2013 - 20:40 | Link to Comment aVileRat
aVileRat's picture

Expected.

Problem is now

1. If they do pull back the punchbowl, what will happen ? Will the market stop at a 10% correction ? 20% ? 1987 showed that in a thinly traded program market the dip can be deep. And it does not bounce back when the BTFATH backstop is not there.Do we go back to 2008 ? Cool, but while the US banks have more 'capital', the mark to magic is still there, and the leverage situation now is even worse than 2007. So what will be the effect now? A bigger TARP to take the new SIV's onto the balance sheet ?

2. If they shut down the TARP, what will Obama do ? This is the big question in the black room (ha!). Will he realize that his spend-a-thon policies are a disaster and cut taxes or restructure his green subsidies to lower energy prices to free up consumer income ? Nope. Is he going to retrace on his political donors in Silicon Valley and lock down the monetization of personal data for 40x cash shell corps ? Hell no. He loves 'dem Tom Steyer dinners and Pebble Beach golf course times too much.

He has already said his mandate and congress track record (of passing policies on XMAS evening at 1 am) clearly vindicates the path we are on. SO in the event of that 40% correction what do you think Obama will do ?

I am going to bet he will go full retard. Nobody wants full retard, but they know full retard is comming "soon".You think gas prices are bad ? What will they be like if he throws in that carbon tax he wants.

Think free trade is anemic now ? What if he starts to push for 'buy america' taxes and we go full Carter. How many Cisco racks and GM plastic cars are going to be sold overseas to EU customers when a 50% head-tax is put on in reperation and Doha is torn up, "because we can" ?

So the best of the worst options is to keep the peddle down and pray to god the engine turns over, maybe Pfizer discovers a cure for cancer because they decide to triple leverage their balance sheet and full-scale buy every PHD paper on the job market right now. Or maybe the oil industry keeps on chugging and manages to export; enabling for the hammerblow to the OPEC cartels & russian cold-war games.

I am going to speculate Yellin is going to keep the dove throttle open until Obama is well defanged and a full half of his snarky body out the door. Anything before this only invites TOTUS to further reach for legacy points.

 

 

Thu, 11/14/2013 - 22:25 | Link to Comment Clowns on Acid
Clowns on Acid's picture

VileRat - They have already gone full retard. QE1 was full retard. Japan has been in full retard mode for 2 years with their SamuraiQE. The ECB will be next with QE....

Only because there has been no significant inflation as measured by the vile Gov'ts, has the markets gone along with the "there is no inflation" bromide. Inflation is rampant... it is just that credit for cars, college tuition, etc...is avaiable so moar debt is created.

Fabians always use the hidden full retard to crash the system and have Federal solutions to their palnned fait accompli.  

Thu, 11/14/2013 - 20:38 | Link to Comment NIHILIST CIPHER
NIHILIST CIPHER's picture

Yellen..... the new Wizard of Yid. She sees nossing, she knows nossing. I think Ben Berskank is still behind the curtain pulling the levers.

Thu, 11/14/2013 - 23:14 | Link to Comment MontgomeryScott
MontgomeryScott's picture

I found a clip of Yellen, speaking of her confidence in the all-knowing fashion of those in the Ivory Towers, N.C.. I thought you might be interested in the REALITY of the situation:

http://www.youtube.com/watch?v=DVG1q49yPaY

The Bernank got his orders from the same people. He is a puppet, much like all the others (including Lord Barry of the USSA).

Thu, 11/14/2013 - 20:40 | Link to Comment stinkhammer
stinkhammer's picture

what a silly cunt

Thu, 11/14/2013 - 20:41 | Link to Comment I am Jobe
I am Jobe's picture

I guess if you are not an IVY League Grad u can't make statements like this. 

FUCK U FED RESERVE

IRS
ACA
FUCK EM  

Thu, 11/14/2013 - 23:23 | Link to Comment MontgomeryScott
MontgomeryScott's picture

Yes, you are correct.

In the case of the Ivy leagers, they are more 'genteel'; and would state that 'if it were possible, those people should attempt to copulate with themselves anally'.

Of course, in the case of the Ivy Leagers, such an act would be laughable, as most do not have penises capable of erection; with which to attempt copulation with themselves (much less others). WAIT, I TAKE THAT STATEMENT BACK. They LOVE to fuck over other people! it makes up for a lack of male genetalia!

Thu, 11/14/2013 - 20:45 | Link to Comment Al Huxley
Al Huxley's picture

Actually, I think its a market that goes up exponentially, with ever smaller corrections that ensures a crash is inevitable.  And looking at this chart always makes me think of what happens with rabbit populations

http://research.stlouisfed.org/fred2/series/BASE

 

But hey, maybe the markets and the FED's monetary base can just continue to go straight vertical without a reversal forever, and without any noticeable consequences to the unwashed masses (other than seeing the super-rich .0001% racing around in hovercars or some crazy shit like that).  After all, this is really narrowly scoped inflation - it benefits so few people that the impact on everyday shit doesn't even need to factor in - imagine $50,000 for dinner in a nice NY restaurant, but gas at say 4.00/gallon.  Hell, if you're in the .0001%, making 100,000,000+/year, 50K's nothing, and for the average guy, those restaurants are already out of reach, so what's the fucking difference.   I think I've finally figured out the model the FED's working here...

Thu, 11/14/2013 - 20:50 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  I think I've finally figured out the model the FED's working here...

Just because we've got one nation (and slow motion flag and eagle) doesn't mean we've got (or should even have) one economy.

Thu, 11/14/2013 - 20:58 | Link to Comment NoDebt
NoDebt's picture

So, you're basically coming around to my often stated prediction:  Small number of rich, large number of poor, just enough middle class to service the rich.  As it has been in most societies throughout most of human history.  (I must have posted this on ZH 20 times or more now.)

Thu, 11/14/2013 - 21:22 | Link to Comment Al Huxley
Al Huxley's picture

I've always had that model, I just figured that the MARKET and the FED balance sheet would eventually have to crash (not to the detriment of the super-rich of course, who would escape whole).  The revelation is that maybe they can just inflate the shit out of their narrow little sector of the economy, still wind up better off net, and the poor and middle class hardly even notice the difference.

 

EDIT - I also like to publish that link to the FED's monetary base whenever I get a chance, because anybody who's thinking we've been HERE before is really not paying attention.

Thu, 11/14/2013 - 22:40 | Link to Comment fonzannoon
fonzannoon's picture

" I just figured that the MARKET and the FED balance sheet would eventually have to crash"

" The revelation is that maybe they can just inflate the shit out of their narrow little sector of the economy, still wind up better off net"

Thanks to a lot of help I have had this revelation.

The only question for me is whether the coming tear in the social fabric will be so big that it takes everything down with it.


Thu, 11/14/2013 - 23:29 | Link to Comment MontgomeryScott
MontgomeryScott's picture

Your thread still functions off of the DELUSION that the population will remain at or above current levels. This is NOT, nor has it ever BEEN, the stated goal of the elite.

http://www.youtube.com/watch?v=10z1KgZhpeg

Really, THEY don't give a shit about the 'money'. They couldn't really CARE LESS.

Fri, 11/15/2013 - 01:50 | Link to Comment walküre
walküre's picture

bullish on dog and cat food

and the poor and middle class hardly even notice the difference.

because that's what the majority will be eating vs. the elite dining to the tune of $50,000 in NY steak houses

if the Kardashians tell the people how healthy dog and cat food is for the whole family, they really won't notice the difference

Thu, 11/14/2013 - 20:45 | Link to Comment TaperProof
TaperProof's picture

It cannot succeed.. so.. it will fail... then what?

Thu, 11/14/2013 - 20:55 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  so.. it will fail

If it survived for 60+ years another 60 is possible.

Re: then what?

If you're dead who cares.

Thu, 11/14/2013 - 20:49 | Link to Comment silverserfer
silverserfer's picture

Yellen will slay the virgin at midnight and the goat will be molested. It has been..     fortold. 

When the bernank puts away his 100 bill print boxers and goes back to his traditional leather underwear it will be time.

 Stanley Kubrick will roll in his grave if he could see the dubach at hand. 

 

Thu, 11/14/2013 - 20:49 | Link to Comment thismarketisrigged
thismarketisrigged's picture

no shit jackass, thanks for letting us know there will be a crash.

 

i just want it to fucking happen already, its insane already. this is more frustrating then the tech bubble.

 

i want the days of this shit again, i hope that we it again soon.

 

http://www.youtube.com/watch?v=I-1g0OZJIdk

Fri, 11/15/2013 - 01:58 | Link to Comment walküre
walküre's picture

Hindsight was 20/20 back then as well. Several key players saw the crash coming we heard later.

Thu, 11/14/2013 - 20:53 | Link to Comment NoDebt
NoDebt's picture

I am tired of trying to make sense out of nonsense.  The problem with all these articles (and there have been zillions of them) is that they are trying to look at this through the lens of 'markets'.  There are no markets any more.  Markets imply there are choices to be made by free individuals.  No such fantasy word exists now.  No contrarian view point will be allowed (just ask anyone who's tried to short this market the last 4 years or tried to be long gold once the Fed and others identified it as a risk to their control).

This will be looked upon as the ascendancy of the greatest age of centralized control the world has ever seen.

Let's hope their efforts are as successful as the roll-out of Obamacare so this insane monetary regime's death will be swift.  

Thu, 11/14/2013 - 20:55 | Link to Comment orangegeek
orangegeek's picture

Yellen had to field several questions about potential market bubbles, but she deflected them aggressively saying that she did not believe that “bubble-like conditions” existed. 

 

What a lying fucking cunt.  Fuck you Yellen!!!!

Thu, 11/14/2013 - 20:58 | Link to Comment Prairie Dog
Prairie Dog's picture

Yellen likely ensured that an equity market crash (someday) is inevitable. 

An equity crash is always inevitable, someday, under any conditions or any policy. Are we saying it is possible to ensure there will never be another stock market crash ever again? ludicrous statement that means nothing.

 

Thu, 11/14/2013 - 21:00 | Link to Comment Bennie Noakes
Bennie Noakes's picture

One possible scenario: Yellen expands QE and prints more and more until inflation finally starts to rise sharply. By then, a significant amount of inflation is already baked into the system. Bonds, not just treasuries but corporates as well, notice the inflation and start to sell off. Commodities and real estate take off. Perhaps stocks too, although inflation wasn't good for stocks in the 70's. Basically we repeat what happened in 1976-82 with Yellen being replaced once inflation gets out of control.

Thu, 11/14/2013 - 21:04 | Link to Comment buzzsaw99
buzzsaw99's picture

...But I didn't know until this day that it was Barzini all along.

There is no market, there is only the bernank.

Thu, 11/14/2013 - 21:28 | Link to Comment Hedgetard55
Hedgetard55's picture

"Tataglia's a pimp".

Fri, 11/15/2013 - 05:37 | Link to Comment lakecity55
lakecity55's picture

"Monkeyman sleeps with the fishes."

Thu, 11/14/2013 - 21:10 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Yellin - milkman of the month...putting 85 billion whole dollars on Wallstreet's doorstep every month...

Thu, 11/14/2013 - 21:11 | Link to Comment q99x2
q99x2's picture

She looks like she's used to having her bubbles pop.

Thu, 11/14/2013 - 21:12 | Link to Comment mark mchugh
mark mchugh's picture

I would have more respect for Congress if they just came right out and said, "If we give you this job, do you PROMISE to make our portfolios go up?"

Thu, 11/14/2013 - 21:15 | Link to Comment TrustWho
TrustWho's picture

My thoughts exactly.

Is Martial Law a monetary tool?  

Thu, 11/14/2013 - 21:18 | Link to Comment nakki
nakki's picture

Again Yellen or Bernanke doesn't matter and please let's all stop pretending that the FED HEAD calls the shots. This is how its going to go down don't know when but eventually 3-4 banks own everything, new currency and 99.9% of everyone is a serf again. Same as it ever was. Yellen and Bernanke are basically the maid and the butler nothing more than that. 

Thu, 11/14/2013 - 22:59 | Link to Comment island
island's picture

Putting aside whether (Y)all-in and Bernokio are "the maid and the butler" or co-conspirators, I couldn't agree with you more.

Thu, 11/14/2013 - 21:32 | Link to Comment q99x2
q99x2's picture

Impeach Janet Yellen.

Thu, 11/14/2013 - 22:09 | Link to Comment MrSteve
MrSteve's picture

The unlimited power of the FED didn't stop 1929, Y2K or 2008. The stress in Europe cracked a fragile world in 1929 and it looks like a repeat is on deck for crisis=NEXT except the US debt/GDP is wound up much tighter this time.

Obamacare is a huge tax increase that blows up the US labor market, restructuring employment contracts, etc. This parallels the labor and youth unemployment in Europe. This is much worse than the tightening that was done in the Thirties during that Depression's recovery. The economy will be pitched back into recession with huge increases in health insurance, officially now a tax.

 

Thu, 11/14/2013 - 22:26 | Link to Comment Zer0head
Zer0head's picture

she is a deranged psychopath who truly believes what she is saying

let me repeat, a deranged psychopath, a genius lunatic at the wheel

 

at least Ben and/or Larry and/or Alan knew the rules and who the bosses were and simply played the role, this one actually believes this is reality

 

She is orders of magnitude more dangerous than the above, she is insane --  an economic Dr. Strangelove

 

 

 

Thu, 11/14/2013 - 22:56 | Link to Comment sablya
sablya's picture

Start with Bernanke then take away reason and responsibility and you get Yellen.  This is as good as it's gonna get right now.

Fri, 11/15/2013 - 05:35 | Link to Comment lakecity55
lakecity55's picture

(Ominous Music Plays).

Thu, 11/14/2013 - 22:52 | Link to Comment island
island's picture

"No bubbles" Yellen or "A Textbook Pre-Crash Bubble" by John Hussman.  

Let's see:  Who is smarter?  Who tells the truth?  Who do you believe??


 


Thu, 11/14/2013 - 23:02 | Link to Comment moneybots
moneybots's picture

"The Fed probably doubts a crash could be as bad as 2008"

 

Famous last words. 

Thu, 11/14/2013 - 23:05 | Link to Comment tawse57
tawse57's picture

She could be the patsy?

I have missed out on this huge stock market rally believing it would crash. It hasn't.

Now Yellen has basically signalled that QE is here to stay so pray tell me Tyler - why will this market crash? 2000 on the S&P? Higher? 2500?

 

Fri, 11/15/2013 - 05:34 | Link to Comment lakecity55
lakecity55's picture

"I'll Take 25,000, Alex."

Thu, 11/14/2013 - 23:09 | Link to Comment Constitutional ...
Constitutional Republic's picture

Yellen like her academic predecessers were promoted because their theories flatter the accounts of her paymasters - the rootless cosmopolitans who own the central banks.

She thinks she's special. She's just another educated fool; a fancy thief, following orders. Heil Herr Yellin...or curtsy to Queen Yellin. Same thing. She'll yell, so long as serfs obey.

Thu, 11/14/2013 - 23:14 | Link to Comment yogibear
yogibear's picture

No wonder Bernanke can't leave fast enough. Yellen will take the fall.

Thu, 11/14/2013 - 23:42 | Link to Comment TulsaTime
TulsaTime's picture

Now all you folks know that it is not allowed to admit anything in front of committees.  Ben had to say it was contained, Al had to limit himself to hints of irrational exuberance, and Janet had to say there are no signs of anything bubble-like in this economy.  In much the same way, republicans can't admit to being racists.  If any of these DC based types admit to even a small slice of reality, they are finished.   

Fri, 11/15/2013 - 14:55 | Link to Comment TrustWho
TrustWho's picture

These public sessions are choreographed as the Fed tells these stupid legislative whores if you say something stupid you could cause unbelievable financial damage to this country and world. I actually believe the fed approves all questions prior to the session.

Thu, 11/14/2013 - 23:48 | Link to Comment ageofreason
ageofreason's picture

Hmm...no bubbles eh?

Didn't that little bearded freak show say the same thing about housing when he was nominated in 2005?

Yes he did!

 

Fri, 11/15/2013 - 05:32 | Link to Comment lakecity55
lakecity55's picture

"Now, Janet, this is my old office. Let me show you my favorite device. It's yours now."

"What is it, Shalome?"

"A micro press. If I want coffee or lunch, I press this button:"

"Oh, cute! A Twenty pops out!"

"Yep. Heck, I never even check my bank statement. If I need any cash, I just press this button!"

Fri, 11/15/2013 - 16:30 | Link to Comment Paulson Bazooka
Paulson Bazooka's picture

"The only way the Fed can ‘win’ is – as Yellen said today – “to do everything possible to promote a very strong recovery”."

QE is a strange game. The only winning move is not to play.

 

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