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Larry Summers: "History Will Overwhelmingly Approve QE"
For anyone who still suggests, incorrectly, that Larry Summers was the "wrong" choice for Fed Chairman just because he would promptly end QE the second he was elected as the erroneous popular meme goes, we have one soundbite from his recent Bloomberg TV interview refuting all such speculation: "if you had to say, should we have used this tool or should we not have, I think the answer is overwhelming that we should have." He had some other amusing logical fallacies (including discussing whether the market is in a bubble) all of which are transcribed below, but the best one is the following: "I think it does bear emphasis that the people who were most appalled by it are the people who have been predicting hyperinflation around the corner for four years now and they have been wrong at every turn." And let's not forget that "subprime is contained" - until it isn't. Then again, the last time we checked, the history on the biggest monetary experiment in history - one in which both the Fed and the BOJ are now openly monetizing 70% of gross bond issuance - has certainly not been written. Finally, in the off chance Summers is indeed correct, what history will instead ask is why instead of monetizing all the debt from day 1 of the Fed's inception in 1913, and thus pushing the stock market into scientific notation territory, did the Fed leave so many trillions of "wealth effect" on the table?
Full Bloomberg TV interview below:
Summers on whether quantitative easing has worked:
"I don't think there's any question that the Fed's efforts to provide liquidity to the markets made a huge difference in getting us out of this crisis and preventing what could have been a depression scenario. I don't think there's much doubt, looking at the slow growth of output that we have had, the failure to achieve escape velocity, the fact that inflation is still trending down, that the right bias of policies towards accelerated rather than towards the break. Are the problematic aspects of QE? Of course. Are the reasons why it cannot be maintained forever? Of course. But if you had to say, should we have used this tool or should we not have, I think the answer is overwhelming that we should have. I think it does bear emphasis that the people who were most appalled by it are the people who have been predicting hyperinflation around the corner for four years now and they have been wrong at every turn. You can debate different views. I am not going to try to make a precise judgment as to just when tapering ought to take place. But on the question of whether the Fed stepping up and providing liquidity when no one else would was the right thing to do, I think historians will judge that about 98 to 2."
On whether Washington understands that QE has benefited the financial industry:
"I'm a Democrat. My primary concern is not with the Street. It is with the incomes of the middle class. But sometimes doing the right thing has had some beneficiaries. That is not the motivation for doing QE. I think the primary consequence of QE is that we have avoided the bottom falling out of the economy in the way that it did when they did not do QE in 1930 and 1931 and made the depression great. As a consequence of saving the economy, has it been better for Wall Street? Yes, it has been. Is that a reason not to save the economy? I surely don't think so. Would it be better if we were growing the economy in other ways? Should we be investing in fixing Kennedy airport which is in shambles at a time when we can borrow money cheap, at a time when construction unemployment is in double digits? Of course. Should we be doing something about 25,000 schools across the country where the paint is chipping off the walls? Of course. Should we be allowing a situation where the brightest young scientists who can't get research funding until they are 40? Of course we shouldn't be. Quantitative easing is not the best tool for growing the economy, but to say that because it has been a good time for Wall Street we need to put the brake on instead, would be to do grave damage to our economic future and I don't think that is the right way to frame the question at all."
On how he would tackle wealth disparity:
"I would be growing the economy. I would be starting to grow the economy by putting many more people to work, doing the things that build the economy. We have deferred more maintenance in the last five years than any time in the country's history. We will pay for that. The next generation is going to pay for that. It is going to mean larger budget deficits in the future. Why isn't this the time when we have so much unemployment, such cheap building materials, and the ability to borrow money and next to nothing -- why isn't this the time to be doing something about that? And that would mean a large number of middle-class jobs. We have pursued policies that have led to a lot more investment in derivatives and a lot less investment in fixing potholes than we should make as a country. Those policies are not defense policies. Those policies are the abdication of the responsibility to invest in the future that has been the consequence of our fiscal policies. A bunch of it is the public sector. The potholes, the failure to fix the airports, the fact that we still have an air traffic control system that relies on vacuum tubes like an old black and white TV -- that is a large part of it. But it is also the case that we have a regulatory framework where it takes forever to cite anything and to get anything done. When you drive in from the airport in London or Beijing, you can talk on your cell phone and it does not get interrupted. That is not true when you drive in from LaGuardia or Kennedy airport as you well know. That is not the public-sector's fault except in so far that it is the fault of a range of regulations that create great uncertainty."
On whether he believes we need bubbles:
"I don't believe in bubbles. Obviously almost when you say something it's a bubble, you are saying it is not that great. What I did say and what I believe very profoundly is that it has been a long time since we have had rapid, healthy growth in this country. When we had growth prior to the financial crisis it was growth that was reliant on bubbles. We have a framework that may well not produce growth in the absence of bubbles. That is not an argument for bubbles. That is an argument for changing the framework. When I spoke at the IMF about the risks of what economists call secular stagnation, what I was calling for was not a resumption of bubbles, I was calling for a framework that would make bubble free growth possible."
On whether he sees any bubbles right now:
"I think that under confidence is a much larger risk than overconfidence in the American economy today. Do I see certain developments, do I hear the word covenant-lite more frequently than i would like to? Yes I do. Are there spreads that look at little tight? Yes, there are. But in the fullness of it, I think the risks we are having too little confidence, too little lending, and too little spending our much greater than the risks of the reverse. Responding wisely and effectively to financial crisis requires -- it is a very difficult thing for people to appreciate and people to recognize. This goes to almost every financial error. Almost every financial error takes the form of doing today what you wish you would have done yesterday. That is what bubbles are about. People see a stock go up and they wish they had bought it yesterday so they buy it today. And it goes up more and there's a bigger bubble. Similarly with respect to panics. What caused this crisis is that there was overconfidence and complacency, excessive borrowing and lending, and unsustainable spending. That is what caused this crisis. But now, after the crisis, the only way we will get the economy back to normal is if we have more confidence, more borrowing and lending and more spending. It is that human tendency to do today what you wish you had done yesterday that can often lead us in the wrong direction. That is why i keep stressing the importance and emphasizing the accelerator rather than the brake, the importance of public and private spending, the importance of maintaining the flow of credit. Those are the things that need to be our priorities."
On whether Washington is to blame:
"I think there are clearly excesses and I think that in particular in financial regulation, as with health care, policy has run ahead of execution. There are aspects of the execution that create great uncertainty. People cannot know what they will be prosecutors for. People make agreements and they cannot rely on those agreements completely holding. I think that is problematic. On the other hand, I don't think there's any question that our financial institutions need to hold much more capital than they were before this crisis and that was the right step. I don't think there is any question that if we are going to avoid the panics and runs that we saw him that there needs to be tighter liquidity requirements. I think the broad thrusts of the change in financial policy are appropriate, but I think there are real things that need to be done."
On whether corporate America would be investing more if there was less gridlock and political uncertainty:
"I'm sure they would be. I'm sure they would be investing if there was more rapidly functioning and more predictable regulatory frameworks around everything from citing to the choice of fuels to the nature of reporting to the rules of immigrants. I am someone who has been for public investment. I have also been someone who has said that confidence is the cheapest form of stimulus. That is a very important principle for government to remember going forward and we need to pay more attention going forward to increase business confidence."
On whether austerity measures in the UK worked:
"I don't think the right reading of the British situation would emphasize austerity. I think the British economy is not as strong as the way you just spoke would suggest. I think insofar as it is, it goes to easy monetary policy and it goes to the consequences of a much weaker pound. It goes to a number of structural reforms. I don't think you'll find many economists taking the position. I don't think you'll find many objective observers making the case that it was the austerity that was responsible for anything that's positive that's happening in Britain."
On whether Washington is open to proposals from Wall Street regarding Fannie Mae and Freddie Mac:
"I think Washington should be and I suspect is open to advice from any quarter. I think the idea that somehow the right thing to do is to privatize these institutions to a coalition of hedge funds who have bought up the stock at a very low price and expect to earn an inordinate return. The idea that that is the right thing for public policy strikes me as being at the edge of ludicrous. It is not something that I would remotely support. It is not an argument against listening. There's a big difference between listening and taking extraordinarily self-serving advice. I think one would have to recognize that how could it be otherwise that those who purchase large amounts of the securities that make proposals that would raise further the value of the securities, that their advice is anything but disinterested or detached."
On why he pulled himself out of the running for Federal Reserve Chairman:
"Given the context and the controversy, I thought it was the right thing for the Federal Reserve for me to withdraw. I thought it was the right thing for the national economy. I don't think that either would have been well served by the controversy that would have continued had I remained a candidate."
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what a fucking asshole!
Brooksley Borne owns Larry Summers. Larry Summers is never wrong, never wrong, and never wrong. He lost millions for Harvard, yet is never wrong.
Hate the guy.
"History Will Overwhelmingly Approve QE"
Of course it will – history is written by the winners. The 99% and fixed-income folks will all be ground into Soylent Green and fed to Blythe’s shitzu in her old age.
"History Will Overwhelmingly Approve QE" - Larry Sommers
“History is a set of lies agreed upon.” - Napoleon Bonaparte
Let's not forget the irony that this was spoken at the ROBIN HOOD INVESTORS Conference.
Oh, Larry forgot to tell everyone that he meant his pet schnauzer "History" was the one who will overwhelmingly approve.
Hey everyone. Larry Summers said he'd be growing the economy if he were in charge. Yet, when given the opportunity to be Fed Chief, he folds.
HAHAHA. What a flake. Larry Summers, you're a fucking loser.
History will show that Larry Summers is the most over-rated piece of dung to ever even have a whiff as Fed Chief- sad that so many still this clueless tard any semblence of credibility, but there ya go....
What Larry means is that the shareholder banks of the Federal Reserve, for whom Larry consults, will overwhelmingly approve that they implemented QE.
Larry 'Gibson's Paradox' Summers is in a bit of a bind as his gold rig is being exposed as the central part of a multi-decade debt / financial market bubble that he engineered with Bob Rubin.
I'M GI JOE AND I OVERWHELMINGLY APROVE OF... what was it again?... EQ!!!
say what?
IQ!!!
hugh.?...
QA...QE WHATEVER!!!!!
G... I.... JOOOEEEEEE!!! I RULE!!!
"History will be kind to us, gentlemen, because I will write it." -- Winston Churchill
ever read churchills tome?
i started reading it in fourth grade(truth, swear to god...no friends at all)
Sommers is such a weasel.
'History is philosophy teaching by examples.'
Thucydides
Yeah, the Greeks figured shit out...
Beat me to it! Bravo! Victors write the history books. So history will overwhelmingly approve QE.
Never mistake that we actually need a Federal Reserve. This quasi public parasite is a bastard child. Pushed into law while 90% of law makers were away.
They create money out of nothing. If you or I did that it would be a felony. They take their made up money and create REAL debt money by buying Treasures bonds.
They feed the cronyism machine, they dilute our buying power that you and I break our backs over everday day.
THEN THEY HAVE THE GOD DAMN NERVE TO TAKE "TAXES" OUT OF OUR PAY JUST TO SERVICE THEIR SYSTEM AND FEED THE FREE SHIT ARMY.
The Fed is a quasi private entity, we are literally get taxed without represenation, not withstanding that the two party system is a total farce.
The american people are brainwashed everyday into thinking that they will be the lucky 5% that actually enjoys a good living when most have no change at it.
Its fuck this friday. Every friday things get worse, if you have been following my posts you know I have been on this for months now...
Addendum:
We determine our quaility of life by how much money we get in paycheck. Would you agree to the following?:
- You get told you make a certain amount, but then you get paid SIGNIFICANTLY LESS.
-Since 1913 the governement decieded that the money YOU worked your ass for to feed YOUR family is now some how theirs! The government spends its money worse then a cronic debt additic.
-Would you give 20 to 30% of your money to a debt addict that then: spies on you every living moment, actively destroyes your basic rights, gets you into fights you have no interest in, delibaretly lies to you, takes your skills set to make money and helps out your neighbor to have an unfair advantage, goes around the neighborhood giving tribute to different gangs so they buy guns and drugs? Well in so many words thats what our government does.
-Did you agree to get paid in a currency which after a big chunk is taking out to feed the deb addict can buy less items everday, while prices also go up. You might getter better at your skill set , but you are rewarded with less purchasing power everyday, that YOU have no direct control over.
- The more money you make the more they take out. However the 1 guy in our town of 99 that makes all the money somehow pays a much lower % then you do.
-Why do humans continue to support a system that clearly destroys their lives, provides no way out, and worse yet, is becoming more aggressive in its destruction.
-Think of how the ACA is now a new addict runinng around the town that asks more % while giving less benefits then what was previously offered. All the while making it tremedously more difficult for people who are geniully trying to escape the wage slave system to escape.
---
REMEMBER THE PEOPLE WHO ARE BENEFITTING THE MOST FROM THIS SYSTEM MAKE MONEY OUT NOTHING. "The Federal reserve has no credit risk." -BB.
You and I are DETERMINED by these people to continue working everyday, get denied the things we like to have or experience, or the freedom to do what we want, with less means everyday to achieve these goals, while they don't* even play the fucking game!!
Why do humans allow a 1000 criminals to control millions of people. Why did the slaves never rebel? Why does the collective believe it is so powerless?
foos - excellent contribution + 10.
to answer your question I think it comes down to that sacrificial lamb situtation.
so who is going to stand (figurativly) in timmamen(sp) square and shoot the 30.06
against the armor plate whilst the fucken thing runs him or her over. the media would use to
reinforce upon the rest of the sheeple, what a waste of life that was.
But, upon enough shit a happening, there is
a spark that ignites spontaneous combustion of anger, and the sheeple come out of
slow boil. ACA could be the pre ignition.
violence is the only solution at this point...
Harry Truman: "History Will Overwhelmingly Approve of the Nuclear Attacks on Japan."
Hiroshima and Nagasaki Victims Remain Silent On The Matter.
I STILL DO!!! FUCK YEAH!!!
BOMBS AWAY MOTHERFUCKERS!!!
YIIIHHHHAAAA!!!
I want you to look at that picture and think what if those people were your family, friends, or the love of your life? What point does that prove? What justice was done?
It took a few men and a one bomb to deliever destruction far beyond their own comprehension and understanding, all while thinking they were doing the "right" thing.
----
Larry Summers thinks he is doing the "right" thing.
Okinawa times a thousand would have been far worse for both victor and vanquished. Try to grow some humanity. The two bombs were a a great humanitarian gesture, in easily quantified terms.
Enjoy that false dichotomy. Try this one, too.
There's "systemically important" and there's not systemically important. It's got to be in the Constitution somewhere. All systemically important men are created unequal while all others... "Far worse."
I find irony in your statement, though I agree with your first point. You asked me to grow humanity while simulatenoulsy justifing the killing of mass amount of people.
In fact because people are the "others" that you don't know or care about its perfectly fine to destroy their lives. I wonder if the roles were reversed and it was two 'merican cities that got it, would you say the same thing? What if you surivived but your family was burned to death, you witness the whole thing and were sick for years praying for death so you could see your family again? Then had a japanese man come up to you and say "yea think of the soliders we saved on both sides!, its easily quantifiable!"
I know what you meant by "in quantified terms", but I am the belief that no life is quantifiable in anyway.
Sure, because "if it saves one child's life..." Right?
It never matters, until its your child.
Japan capitulated not because of the bomb - every Japanese city except those on the atomic bomb "short list" had been napalm-torched, two more were not going to change the Tokyo regime's mind - but because the USSR invaded Manchuria, destroying the position of the Japanese Army on the mainland. The Army were the last holdouts against surrender in the government, but they lost their leverage with Manchuria.
The atom bombs was nothing but a US science experiment.
larry, is that you down voting?
Pavement on the road to hell.
Your a genius HH,
Do you have access to their playbook? Do they huddle together and and say ok now it's time to say this
Would you rather this was a picture of dead Americans? How about those killed at the hands of the brutal POW camps? We were told that Nagasaki and Hiroshima would be unlivable for a thousand years, but alas they are thriving cities. What was your point....we had to kill some japanese to win the war before they killed us? Sorry no sympathy for the japanese they were vicious and brutal....go read Unbroken!
LS is never wrong? Shit, that reminds me of my wife.
You're married to Larry Summers?!?
Man, I'm sure sorry.
As far as i know LARRY, History overwhelmingly tells us that YOU, ROB RUBIN, CLINTON and some others i can't think of you right now in my anger undid GLASS- STEGAL creating the fucking shit show we are in causing the need for QE INFINTY. But our children will never learn that in the history books, only from informed parents like myself......ASSHOLE
"History Will Overwhelmingly Approve QE"History is what is reported by the victor. The people - he 99.9% - are the losers right now. That will change. Your corpse will be cut down from the lamp post on one day in the future.
that fucking asshole, Mr. Reilly, will soon have an accompanying fat bastardesque neck vagina by the looks of it.. LOL
I' m sure Hitler said the same thing about his activities.
Another scumbag who needs the firing squad.
Bullets are expensive. Poor ROI, poor EROEI.
He might be of more use on a gator farm.
Rope is also reuseable....
True, but I'm partial to a new set of gator boots and wallet. The irony, the irony. ;-)
All you gotta do is take off Jabba's lap band and he will kill himself in no time.
pods
Suddenly I am seeing the Reflecting Pool located conveniently between Congress and the Lincoln Memorial, filled with Gators.
We can start those that are ruining this nation at one end of the reflecting pool, and if they make it to the other end, they are free.
And if they don't, well it's a win win for us and the gators.
I think this could work.
long gators, bets and leveraged...
unlimited margin!
Government Gator Games...we could sell tickets!
Obama's immigration speech, El Paso (2011) on what the opposition wants re border control:
'Maybe they’ll say we need a moat. Or alligators in the moat.'
DB
What if Mr. Summers is correct and the Zero's are, well.. Zero's?
Over.
Well now Larry, that would depend on if you're on the receiving end of the bezzle or if you have to pay for it, wouldn't it?
Until it doesn't....
Edit: Clearly this went over the head of at least two people. It was by no means a supportive statement...
"I don't think there's any question that the Fed's efforts to provide liquidity to the markets made a huge difference in getting us out of this crisis and preventing what could have been a depression scenario."
We are in a depression scenario. 10% real unemployment persists, 4 years after the recession ended. 47 million people on food stamps. Detroit in bankruptcy. Others following suit.
History will not be on Sumers side.
"i dont believe in bubbles"
-gets rid of glass steagall
FAIL
What a prefect segue into memorializing the JFK Assasination with Exec Order "11110".
Followed by the worst assasination to the American people and it's economy 35 years later with the stroke of a pen.
Anyone up for memorializing the 20th Anniversary of the death of Glass-Steagall?
Let's hope this prick isn't around for it.
Summers is probably right, but not for the reason that people think. Those in power get to write the history using whatever lies they want ... and have the lies taught to future generations as "truth". Also as has happened throughout history, those in power seem to like to destroy any evidence of the real truth, including murdering those who might oppose their lies.
So, Fat Larry is right ... (to me he will always be "Fat Larry", no matter how much he weighs.)
The 0.1% write our history. And our laws and regulations. They are the big winners of QE. As is Larry Summers.
you know.... you can write a fake wikipage history page and chances are nobody will notice and in 5 years from now teachers will use it in their classes
And here I thought the communist loser who shot JFK was in the bottom 20%, at best.
History also overwhelmingly favored the One Wheel Motorcycle...
but nobody has one... wants one... okeay... I still want one...
When will we take
This back
?...
When we start having a conscience to all the bad shit we've done for the last 68 years and pack (535 + 1) 6 foot long pieces of rope, bringing ourselves to Washington and
Have a Party!
You forgot the VP....
Summers only loves Summers. Summers loves hearing Summers' speak. Summers thinks he needs to save the masses from their own stupidity. Central Bankers think they are saving western civilization.
When a system harms the people it governs for behavior that gives that system life, the system will die. Savers in western civilization are being harmed. I do not care if you are a socialist, capitalist, communist, fascist or...., civilization is advanced by people who delay consumption today to build a better tomorrow.
This is a natural law that allows life to continue. Even plants "waste" energy to produce seed (save future generations). Humans maybe are so self-focused and greedy that the species may cease. Central Bankers think they are saving western civilization. How ironic, no?
It has mostly to do with his upbringing, and his worldview.
Humans aren't the problem per say... sociopaths are the problem. But when freedom loving humans allow themselves to be dominated by sociopaths, then humans are the problem.
"Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience."-C.S. Lewis Included here because this is the anniversary of his death as well as Kennedy's. Few compare to Lewis' intellect , least of all Summers.
in one sense he is correct if we are talking about the history of criminals, cheats and frauds. these people sin off the charts and then pronounce it is wonderful
What job is Summers angling toward?
Anything that requires zero aptitude, zero accountability, zero responsibility, zero productivity, and 100% tax payer relief. Probably wants to head up a bank or something. What other occupation has a job desription like that?
NOAA meteorologists.
I wish I could be wrong in my jon more than 50% of the time.
LOL, Yeah Larry, how well did your near bankrupting of the college fund turn out?
Did you doze-off way too many times?
" I don't think there is any question that if we are going to avoid the panics and runs that we saw him that there needs to be tighter liquidity requirements"
85 billion a month of QE3 is not tighter liquidity. Thus panics and runs are guaranteed.
"The daily creating of fresh paper money which the government requires in order to meet it obligations both at home and abroad...inevtiably decreases the purchasing value of the mark and leads to fresh demands, which in turn further decline, and so on ad infinitium."
When Money Dies, The Nightmare of the Weimar Hyper-Inflation of 1923 by Adam Fergusson
China is taking notice already...
US Dollar And Gold - PBOC Says No Longer in China’s Interest to Increase Reserves
We are following the groundbreaking changers coming out of China after The 3rd Plenum and PBOC drops another shell-bomb on the US Dollar today. We are witnessing the end of US Dollar as the Reserve Currency of Choice now. Who will be buying all these US Treasuries after that? How can FED Taper now? We can be assured about much higher interest rates with very far reaching implications for the economy and the U.S. fiscal budget. Timing of this release is very interesting - just yesterday Gold was killed after the release of FOMC minutes. We are entering the new dramatic stage of the Currency Wars, when China picks the old Austrian economics truth - strong currency means strong country. How long Gold Smashing can keep it down with COMEX running on fumes and record high leverage? http://sufiy.blogspot.co.uk/2013/11/us-dollar-and-gold-pboc-says-no-long...
The fact that China no longer accumulates USD exposure has been revealed here on numerous prior occasions. What the real news is the following previously reported story: China Fires Shot Across Petrodollar Bow: Shanghai Futures Exchange May Price Crude Oil Futures In Yuan
Think the "bellwether" arrived.
"That's a big fucking deal."
Joe Biden.
Wheres Joe when you need him?
Ireland and Iceland did without it by refusing to bail out the banks and are now seeing a good economy .....it all behind them
Nobody buys your shit anymore Summers; or Yellen; or what ever your Stage name is....
Go fuck yourself Larry.
You could put a large billboard on that lady's forehead
Survival of the fittest, bitchez!!
"I don't think you'll find many objective observers making the case that it was the austerity that was responsible for anything that's positive that's happening in Britain."
Summers doesn't believe in living within your means, which is what austerity is. Summers would rather people be bankrupt from living beyond their means.
It's all noise now ...... they are all in and will not/can not change course.
"should we have used this tool or should we not have"
Okay, so help me out, which "tool" are we talkin' 'bout?
Why stop at favoring the Federal Reserves's QE? Why not favor Weimar Republic, Zimbabwe, Greece, Argentina and Venezuala? All of those countries used inflation to"help" their middle classes too!
COCKSUCKER!
There are plenty of folks NOT "...predicting hyperinflation..." that think QE is f'd up policy.
FUCK THE HISTORY. THE PRESENT OVERWHELMINGLY DISAGREES !!!
Consider asking someone else what they think about your decision; you know, the one's who have no voice in the use of their labor against their will to fund your delusions of "doing God's work".
RE
This guy is not only a degenerate....but also the biggest fucking moron in the history of finance.
The economic issues, are not macro issues (and there are plenty). But even if we fix them (wages, safety nets, job creation, taxation), the economy is still fucked because the issues of the economy are MICRO issues (fraud, corruption, abuse).
These NeoLiberal corporate assholes aren't going to get this until there is blood in the fucking streets.
History is gone and past and cannot approve of anything in the present nor the future.
What an idiotic over used saying.
A true meaning might be that their rewriting of history, at some futute date, will most probably be laden with accolades and justifications for their present and previous actions (misdeeds).
Obviously only a genius ivy leager like Bernanke or Summers could have come up with an idea like QE. I imagine the conversation went something like this. "Nobody wants to buy the toxic treasury and mortgage backed paper what do we do? I got it we create make believe money and buy the paper ourselves." Brilliant, pure genius. Then spend the next 5 years speaking about how you saved the world at self-congradulatory conferences full of bought and paid for sychophant professor buddies looking to have their "research" funded from some of that hot free fed money as well. Before you know it, everyone believes the bullshit, or they just don't care.
BTW Larry, A. Fekete never said there would be hyperinflation, in fact he said the regime of constantly falling interest rates and bond speculation would result in capital destruction. As the debt tower grows and capital is further destroyed we would likely get hyperdeflation and maybe a new dark age.
Famous last words on that hyperinflation quote. The fact is hyperinflationists have been correct in predicting the Fed's every move and that they would continue to print us into hyperinflation. How does that bode for their final predictions?
This guy has the face of a war criminal
In my best german accent:
"You will accept the new abby-normal, or you be taken to a FEMA camp and shot!"
Insanity reigns supreme these days
On July 30th, 1998, Mr. Summers then-Deputy Secretary of the Treasury testified before the U.S. Congress that "the parties to [derivative contracts] are largely sophisticated financial institutions that would appear to be eminently capable of protecting themselves from fraud and counterparty insolvencies."
Mr. Summers called Raghuram Rajan a luddite for daring to warn about impending systemic risks back in 2005.
We are asking advice from the arsonist on how to extinguish the fire. Yikes.
QE is printing. Printing is stealing.
Time to go oil the guillotine.
wrong
Larry, have you seen my gerbil?
Larry?
Summers thinks if he says the right things he will get a complimenary ride on Liquidity One.
A thousand times worse? For the banks...THAT IS ALL! THEY SHOULD HAVE BEEN LIQUIDATED and market rotation to deflate bubbles. Larry and his Clinton Citi criminals did this.. Just like Regan crony private equity with FED credit as a direct thief from bond holders.
http://www.shadowstats.com/imgs/sgs-emp.gif?hl=ad&t=1383921950
Larry Summers is disliked by:
I believe he is treading new ground in personal career and reputation suicide. I cannot think (though I am certain there are other ZHers who may) of anyone so widely afflicted with foot-in-mouth asshole-ishness of an infinite degree. Any deeper and you'll be in Pakistan hanging with Veena Malik, Malala Yousufzai, and Asma Jahangir. (Somewhere out there, a Pakistanian is laughing his ass off...the rest of you? notsomuch)
Jabba the Economics Hutt finally reached his level of malfeasance.
Couldn't happen to a nicer sociopath.
Most wanted person should he survive the revolution.
"If you repeat a lie often enough, people will believe it, and you will even come to believe it yourself."
Dammit. I just ate my lunch and now see this article.
I wonder how many other egotists have expressed themselves similarly before their pet bubble burst.
History has a looong way to go. And once again, Summers will prove to have been on the WRONG side!
Has Larry become a conservative? Worrying about uncertainty caused by over regulation? Where was he when the administration started proposing all of this regulatory insanity?
Speaking of history, don't read this!
http://www.pbs.org/wgbh/americanexperience/features/primary-resources/jf...
I have never read this before, very interesting.
There seems to be a misunderstanding or disconnect between the folks on the board here @ Zero and the feds. Please debunk this Galbraith video at 7:03 - 7:48
http://www.youtube.com/watch?v=qD3XMyNmfeY
Thesis: as long as the world is willing to play the game (use this system) and adhere to it's changing rules, it will continue in motion.
Correct ?
... douchebag ...
History may approve of QE, but people won't after the price of oil crushes QE into a fine powder. May not happen for a few years, though.
I am sure the Free shit army is convinced this turd is a god. FORWARD!!!!!!!!!!!
"I'm a Democrat."
The rest is tl;dr
Friday humor at it's finest on such a sad day.
Honor JFK and watch the only documentary on his assassination you'll ever need... and watch the Netflix version or buy the DVD on Amazon, the YouTube version *is not* the same!
http://movies.netflix.com/WiMovie/70128268
"I am a Democrat and everyone knows that the free lunch for friends and dependent voters can go on forever."
As long as there is at least 1 middle class chump to pay for it.
"What caused this crisis is that there was overconfidence and complacency, excessive borrowing and lending, and unsustainable spending. That is what caused this crisis."
And the FED and GOV are only exacerbating this situation.... We have to break this cycle.
So Larry is the False Prophet - aha!
<<< Right or
<<< Wrong:
"I think historians will judge that about 98 to 2"
Ponder this, Lick-Ass Larry, on the Tree of Woe.
He is right. History will approve of what the fed did. History is written by the victors. The constitution was written to form a voluntary union of states. The idea being that states could and should secede from the union if their people feel they no longer wish to participate. Lincoln destroyed that, and destroyed the constitution in a war that unnecessarily killed hundreds of thousands of Americans. Wilson oversaw the creation of the federal reserve and the income tax, and FDR pushed an expansion of the fed gov that would have seemed incomprehensible to our founders, along with destroying the notion of only gd and silver shall be used as money. These three men did irreversible damage to our republic, yet are regarded as heros. History books, and the public education system created by those of the same mindset have succeeded in making these men out to be among the best of America's presidents, despite them arguably doing more damage than any others. So in this context, yes, Larry is right. History will look kindly upon the fed, and QE, as saving the country. No mention will ever be made of the reasons why this situation materialized in the first place