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Janet Yellen Explains Why You Should BTFATH - Live Feed

Tyler Durden's picture




 

Alongside that other canard of global monetary machinations, Christine Lagarde (who oddly declared earlier that "the global economy will not return to 'pre-crisis' world" and asked if central banks need a 'financial stability goal' -mandating a market "put" of sorts); Fed head Janet Yellen will be addressing her peers at The IMF this morning. We expect a lot of "noise" comments, "lower for longer", "weather" excuses, and escape velocity is coming any minute as she desperately tries to keep the "don't worry, you will be ok without all our money printing" meme alive.

 

  • *YELLEN: `WE HAVE MUCH TO LEARN' IN MACROPRUDENTIAL OVERSIGHT
  • *YELLEN: POLICY MAKERS SHOULD COMMUNICATE CLEARLY ON STABILITY
  • *YELLEN: POLICY AT TIMES MAY BE APPROPRIATE TO ADDRESS RISKS
  • *YELLEN SAYS FINANCIAL STABILITY COMPLEMENTS FED'S DUAL MANDATE
  • *YELLEN: MACROPRUDENTIAL RULES SHOULD BE MAIN STABILITY DEFENSE
  • *YELLEN: STABILITY BEST PROMOTED BY MACROPRUDENTIAL OVERSIGHT
  • *YELLEN 'MINDFUL' OF HOW LOW RATES CAN PROMPT 'REACH FOR YIELD'
  • *YELLEN SAYS RATE POLICY SHOULDN'T CHANGE OVER STABILITY CONCERN
  • *YELLEN SAYS RATES SHOULDN'T BE MAIN TOOL ENSURING STABILITY

 

 

IMF Live Feed...Yellen due to start at 11ET (if embed is not working use Bloomberg below)

 

Bloomberg Feed (click image for feed - no embed)

 

Lagarde:

The world is continuing to change. Monetary policy, and central banking, will not go back to what they used to be once the crisis is finally behind us. This tumultuous period from which we are beginning to emerge has raised fundamental questions. It has pushed us outside of our comfort zone and forced us to learn.

Full Yellen Speech:

 

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Wed, 07/02/2014 - 11:02 | 4917740 replaceme
replaceme's picture

I'm Learnding!  - Janet "Wiggums" Yellen.

Wed, 07/02/2014 - 11:06 | 4917756 spastic_colon
spastic_colon's picture

translation...."it's ok to use monetary policy to create financial instability, just not ok to use it to create stability"....

Wed, 07/02/2014 - 11:08 | 4917764 NotApplicable
NotApplicable's picture

Well, given the only monetary policy to achieve stability is to let nature take its course, it's easy to see why they'll never do anything but create instability.

Wed, 07/02/2014 - 11:14 | 4917787 Honey Badger
Honey Badger's picture

How cute, she learned a new word..."macroprudential"

Wed, 07/02/2014 - 11:44 | 4917825 hedgeless_horseman
hedgeless_horseman's picture

 

 

More of this consequence-free intellectual-circle-jerking from ivory tower central planners available here...

http://www.ijcb.org/

Special Issue: Inflation Targeting and Its Discontents

lol  Discontents?  Mr Abe...paging Mr Abe.

When CBs are the market then everybody...fucking everybody...that is managing
money for a living in 2014 should be reading this rag cover to cover
every single quarter. 

Wed, 07/02/2014 - 11:33 | 4917845 nickels
nickels's picture

A "robust macroprudential approach" to be instituted. This is the change in Fed-Speak that should be noted. Run this thru your Enigma machine and it says "We screwed this pooch and now we're gonna try to find Jesus- fair warning!"

Wed, 07/02/2014 - 11:59 | 4917951 Doña K
Doña K's picture

I am wondering  if I can  use macroprudential methods to stabilize the family's finances.

How can we do that Mr. Yellen?

Wed, 07/02/2014 - 11:21 | 4917810 Stoploss
Stoploss's picture

** YELLEN **  "We know monetary policy is causing the continued crisis, but we're not changing it 'cause we learnin'.

I am more confident than ever i will live to see the FED DIE.

Wed, 07/02/2014 - 11:41 | 4917886 Herd Redirectio...
Herd Redirection Committee's picture

"We have been forced to choose between the annual government budget, and the integrity of the US dollar."

"It is with much sadness that we announce an inability to reduce the annual gov't budget..."

"But the Strong USD will live on!  Take our words for it!"

Wed, 07/02/2014 - 11:14 | 4917788 tempo
tempo's picture

tapering doesn't mean lower stock prices or less liquidity!!! With higher withholding taxes this year, the Treasury needs are lower and less funding is required. The FED tapering reflects the Treasury forecast. Liquidity to primary dealers is very high.

Wed, 07/02/2014 - 11:41 | 4917880 OneLessZombie
OneLessZombie's picture

The FED is going to break inflation off in our asses whether we like it or not.

 

I've seen this story play out before and it wasn't pretty.  Volcker finally had to put a reign on it, but not until prices got so high that nearly no one could afford to do anything and we are already well cooked in that stew. 

 

The MORE they raise prices, the LESS BUSINESS there will be.

 

FACT.

Wed, 07/02/2014 - 11:44 | 4917906 Herd Redirectio...
Herd Redirection Committee's picture

Raise interest rates.  Cut taxes.

I will tell you what would happen.  There would be a lot of happy people, and a small group of EXTREMELY upset people.  Former gov't employees, former GS and JPM bankers (really they were just monkeys trained to gamble), those in the 'defence industry', those in higher education...  Property speculators...

Everyone else though would rejoice.  Recipe for Civil war, you say?

Wed, 07/02/2014 - 11:07 | 4917743 buzzsaw99
buzzsaw99's picture

open sesame bitchez [/alibaba ipo joke]

Wed, 07/02/2014 - 11:22 | 4917814 CrashisOptimistic
CrashisOptimistic's picture

headlines.ransquawk.com/headlines/fed-s-yellen-due-to-speak-in-15mins-and-expected-to-reiterate-her-recent-comments-of-note-she-will-not-have-the-latest-nfp-report-until-this-evening-so-it-is-unlikely-she-will-speak-about-it-02-07-2014

 

WTF is this shit?  Her staff can take positions in Asian futures markets?  Or European futures markets?  No goddamn wonder there are big moves overnight before news comes out.

Wed, 07/02/2014 - 11:04 | 4917747 PlusTic
PlusTic's picture

In summary...FAKE MKTS ARE HERE TO STAY

Wed, 07/02/2014 - 11:05 | 4917749 666
666's picture

It's interesting that The Bernanke has been completely forgotten (absolved?) in all this insanity.

Wed, 07/02/2014 - 11:08 | 4917767 astoriajoe
astoriajoe's picture

Not sure why you say forgotten/absolved, but honestly, does it matter who sits in the chair at this point?

Wed, 07/02/2014 - 11:11 | 4917775 NotApplicable
NotApplicable's picture

Where's the value in blaming the old puppet? It isn't like either one of them are/were actually in charge of anything.

The only fear Yellen should have is to be replaced by CGI.

Wed, 07/02/2014 - 11:46 | 4917912 Herd Redirectio...
Herd Redirection Committee's picture

Even Dimon is getting ready to exit stage left, with his 'throat cancer'.

Hey, I'm cynical, what do you expect.

Wed, 07/02/2014 - 13:35 | 4918383 Squid Viscous
Squid Viscous's picture

his place in hell is assured, hopefully he is tortured first... but that's just wishful thinking

Wed, 07/02/2014 - 11:33 | 4917751 astoriajoe
astoriajoe's picture

The world is continuing to change. Monetary policy, and central banking, will not go back to what they used to be once the crisis is finally behind us. This tumultuous period from which we are beginning to emerge has raised fundamental questions. It has pushed us outside of our comfort zone and forced us to learn

 

I don't remember who said this yesterday here, but "Jesus, Mary & Joseph!!" that's one scary quote.

All your markets now are belong to us.

Wed, 07/02/2014 - 11:37 | 4917858 CrashisOptimistic
CrashisOptimistic's picture

Yeah?

Well they haven't learned shit unless they learn how to print oil.

They are oblivious.  They are not stupid.  They bring in consultants who tell them everything is fine with oil, because those consultants became "well respected" by telling oil people what they want to hear.  What consultant ever became well respected by telling his employer of the moment that doom approaches?  That guy's contract will never be renewed.

So they say glorious things, because after a career of doing so and paying for the Mercedes, they conclude that what they are saying must be right or they would not have that Mercedes.

Wed, 07/02/2014 - 11:08 | 4917762 flyingpigg
flyingpigg's picture

" and forced us to learn."

Welcome to the school of hard-knocks Bitchez!

Wed, 07/02/2014 - 11:12 | 4917781 NotApplicable
NotApplicable's picture

Reminds me of how the Gold Standard was tossed in order to usher in the fraud known as the Gold Exchange Standard.

Wed, 07/02/2014 - 11:08 | 4917766 Sudden Debt
Sudden Debt's picture

Silver is reacting in the right way :)

Wed, 07/02/2014 - 11:13 | 4917768 Kaiser Sousa
Kaiser Sousa's picture

if you care about friends or family who might fucking listen i would share this with them...very sound video.

http://www.youtube.com/watch?v=qrz76_j9MRs

Wed, 07/02/2014 - 11:28 | 4917831 Rosie-Redknapp
Rosie-Redknapp's picture

Getting anyone to listen , without them thinking that you have completely lost the plot is a lot harder than you think.

Wed, 07/02/2014 - 12:26 | 4918067 WmMcK
WmMcK's picture

Long Alan Funt.

Wed, 07/02/2014 - 11:10 | 4917770 Seasmoke
Seasmoke's picture

Still sticking with the farce that is the dual mandate !!!

Wed, 07/02/2014 - 11:10 | 4917774 joego1
joego1's picture

Let them eat debt.

Wed, 07/02/2014 - 11:45 | 4917786 khakuda
khakuda's picture

We're going to keep rates at zero, but verbally scold anyone who leverages up to take advantage of our irresponsibility?

She is SO naive.  ONLY higher rates can stop the parabolic bull at this point.

All clear, Trade on!

Wed, 07/02/2014 - 11:15 | 4917791 Obama_4_Dictator
Obama_4_Dictator's picture

Get ready..here come the fireworks.....hope everyone on here is prepared

Wed, 07/02/2014 - 11:15 | 4917794 hairInTheSoup
hairInTheSoup's picture

their little jokes are so totally awful, laughing out so loud at how their little "central banking community" is screwing the world

Wed, 07/02/2014 - 11:17 | 4917800 Dr. Engali
Dr. Engali's picture

YELLEN SAYS RATE POLICY SHOULDN'T CHANGE OVER STABILITY CONCERN
YELLEN SAYS RATES SHOULDN'T BE MAIN TOOL ENSURING STABILITY

I was for stabilliteeeeee before I was against it.

Wed, 07/02/2014 - 11:21 | 4917809 undercover brother
undercover brother's picture

all she's saying is that the fed is now in the business of moderating all financial markets as well as all that other bullshit they suck at.

Wed, 07/02/2014 - 11:22 | 4917813 BeetleBailey
BeetleBailey's picture

THE WHOLE FUCKING PREMISE OF "LOW INFLATION" MAKES ANYTHING SAID BY YELLEN OR ANY FUCKING MEMBER OF THE CRIMINAL FED STUPID.

IN FIVE FUCKING MINUTES, I CAN DESTROY ANY "LOW INFLATION' ARGUMENT YELLEN COMES UP WITH....OR ANY OTHER LIAR....

GEE JANET....IF THE ECOMONY IS SO FUCKING GOOD....WHY PRINT MORE FIAT?

FUCKING CONGRESS......ALL BOUGHT AND PAID FOR LACKEYS....

 

Wed, 07/02/2014 - 11:59 | 4917961 tempo
tempo's picture

FED printing = record asset prices = good headlines!! No inflation except in asset prices. Labor is screwed.

Wed, 07/02/2014 - 13:26 | 4918328 TeethVillage88s
TeethVillage88s's picture

Did you say

-Criminal Stupid
-Felony Stupid
-Treasonaly Stupid
-Racketeering Stupid
-Cartel Stupid
-Keiretsu Stupid
-Zaibatsu Stupid
-Assault on the Constitution

https://en.wikipedia.org/wiki/Zaibatsu_busting
https://en.wikipedia.org/wiki/Keiretsu
https://en.wikipedia.org/wiki/Racketeering

Interesting Sounds like 9-11:

A racket is a service that is fraudulently offered to solve a problem, such as for a problem that does not actually exist, will not be affected, or would not otherwise exist.

Wed, 07/02/2014 - 11:25 | 4917823 SethDealer
SethDealer's picture

i bet she even has fake tits

Wed, 07/02/2014 - 11:28 | 4917830 NOTaREALmerican
NOTaREALmerican's picture

It's a survival-of-the-fittests game.  Some people get the rules some people don't. 

Wed, 07/02/2014 - 11:29 | 4917835 Atomizer
Atomizer's picture

Monetary policy, and central banking, will not go back to what they used to be once the crisis is finally behind us.

 

What crisis? Sock puppet gaslighting protocol.

 

Wed, 07/02/2014 - 11:34 | 4917841 khakuda
khakuda's picture

So, instead of raising rates to quell speculation, she is going to try and increase regulatory capital requirements?  Is she so foolish so as not to know that there are ways around the regulations?  Come on Janet, wake up.  Look at the size of the balance sheets of the financials relative to their equity.  Add some derivatives to the mix and it's well higher than it appears.

The only thing that works is higher rates.  The blunt tool is the best.  It's hard to game.

She is a fool's fool.  Give people free money and they will find a way to get around the macroprudential regulations.  Guaranteed.

Wed, 07/02/2014 - 11:35 | 4917850 buzzsaw99
buzzsaw99's picture

at the end of every quarter she helps the banks circumvent regulatory requirements so it is all just lies and obfuscation

Wed, 07/02/2014 - 11:42 | 4917893 khakuda
khakuda's picture

Exactly.  She doesn't even make sense.

ZIRP was designed to raise asset prices.  Years and years of ZIRP has raised them far more than fundamentals justify, posing a risk that they decline precipitously to reconnect with reality.  Telling people you will be keeping rates at zero will only cause the discrepency and risk to further increase.

Low rates are the risk and can only be resolved with higher rates.

Wed, 07/02/2014 - 11:59 | 4917958 Herd Redirectio...
Herd Redirection Committee's picture

The con is on.  The con is that the Fed acts independently.  The con is that the Fed is 'following its mandate'.  The con is that they are looking out for us. 

Truth is, they are taking orders from the banksters, GS, JPM, Lloyds, Barclays, HSBC, Deutsche Bank, ABNAmro...  And these banksters PLACE BETS on what decision the CBs will make,what policy they will follow.

Wed, 07/02/2014 - 12:24 | 4918055 buzzsaw99
buzzsaw99's picture

in a perfect world there would be no fed and no interest

Wed, 07/02/2014 - 12:50 | 4918167 TeethVillage88s
TeethVillage88s's picture

You might be right.

I have to scan the printed speech.

Higher Rates are being cited in ZH as something that will cause businesses or financial business to crash and burn.

But these business owners knew they were playing with fire if they commit to low interest rates for what ever reason.

Maybe someone can explain how the Economy goes boom from higher interest rates and that really hurts the rest of us. (Request for Info here)

But capitalist know they play chances and they are willing to suffer the lose of the business if they have pulled $200K or Millions in Income out of the system.

Call it boom & bust American capitalism

Wed, 07/02/2014 - 11:35 | 4917853 Ban KKiller
Ban KKiller's picture

Lies. The FED has failed in its stated goal while their unstated goal, of wealth confiscation, is working just fine. Inflation is killing us...meanwhile the MIC laughs. 

 

Death to the fascist oligarchy. 

Wed, 07/02/2014 - 11:38 | 4917866 ptoemmes
ptoemmes's picture

It's not that I actually miss Greenspan, it's just that there was so much fun to be had when he spewed forth words with no particular assocation to each other.

Wed, 07/02/2014 - 11:46 | 4917913 Cthonic
Cthonic's picture

If Green-span threw up a little at each Bernanke speech, right now he's probably drowning in vomit.

Wed, 07/02/2014 - 11:39 | 4917870 OC Sure
OC Sure's picture

There are no Central Banks.

Is it the Central Bank like the one in the center of town? Or is it the Authoritarian Bank like the Federal Reserve? A central bank could be just about any bank and therefore its location, even if only metaphorically, is not the defining characteristic of the Federal Reserve bank. Instead, what defines the Federal Reserve is its authority over the entire banking system and everyone's life. However, calling the bank of authority in any nation the Authoritarian Bank is not as pacifying as calling it the Central Bank; nevertheless, one term is true and the other is false. It is similar to how dictators are called presidents as if they were genuinely elected to preside. Or, it is like how the currency that we exchange is called money when it is counterfeit. The purpose of tyranny's misuse of language by calling a thing what it is not is to hide from everyone what it is.

Wed, 07/02/2014 - 12:37 | 4918103 TeethVillage88s
TeethVillage88s's picture

I think it is Centralized Bank Like we have a Command Economy.

If we go back to look at communist governments.

1) Centralized Military
2) Centralized Government
3) Command Economy (Centralized)
4) Screw the little people
5) Provide separate goods, services, shops, hotels to the Party Elite
6) Nationalize all Industry or make them controlled by a few Elite Party Members
7) Allow only Elites access to Foreign Currency or allow them to have a separate kind of currency within finance and perhaps banking with separate rules for the Elite

Oh, THAT SOUNDS LIKE THE USA NOW!

Wed, 07/02/2014 - 11:39 | 4917871 Spungo
Spungo's picture

I find that picture racist because all of the money is green. Where is the black money?

Wed, 07/02/2014 - 11:43 | 4917897 orangegeek
orangegeek's picture

it's called oil or coal if you prefer

Wed, 07/02/2014 - 11:40 | 4917872 peter4805
peter4805's picture

"macroprudential" ?

Wed, 07/02/2014 - 11:40 | 4917876 Cthonic
Cthonic's picture

macropudendum

Wed, 07/02/2014 - 12:11 | 4918001 WmMcK
WmMcK's picture

On the last pudendal nerve

Wed, 07/02/2014 - 11:48 | 4917920 khakuda
khakuda's picture

She has used the word at least 100 times in this speech.

Wed, 07/02/2014 - 13:11 | 4918257 viahj
viahj's picture
  1. 1967 Parole Hearings Man: You feel you've been rehabilitated?
  2. Ellis Boy "Red" Redding: Rehabilitated. Let's see now. You know, come to think of it, I have no idea what that means.
  3. 1967 Parole Hearings Man: Well, it means you're ready to rejoin society as
  4. Ellis Boy "Red" Redding: I know what you think it means. Me, I think it's a made-up word, a poli- tician's word. A word so young fellas like you can wear a suit and tie and have a job. What do you really want to know? Am I sorry for what I did?
Wed, 07/02/2014 - 11:41 | 4917885 SheepDog-One
SheepDog-One's picture

In short- 'hey, 220, 221.....whatever it takes to please you central banksters!'

Wed, 07/02/2014 - 11:43 | 4917899 Yen Cross
Yen Cross's picture

 Good grief...I thought chairsatan was opaque, but this devil spawn bitch takes it to a whole new level!

Wed, 07/02/2014 - 11:48 | 4917919 orangegeek
orangegeek's picture

well timed speech about nothing - no POMO today, big REPO has come and gone

 

so Yellen hangs the market with some rant - and the institutions get to trade up another day

 

tomorrow will be slow - big POMO on Monday - should be the end of the push - no POMO W, F - small POMO T, Th

 

so Janet, where's the buying coming from next week?  any shitbag speeches to give next week, similar to the one to spewed today????

 

tick tock yellen

Wed, 07/02/2014 - 11:48 | 4917923 undercover brother
undercover brother's picture

it's as if she had a dozen different assistants write different parts of this speech and then asked a couple of them to patch it all together.  She drones on about upgraded system oversight, then makes entirely inane comments about balance sheets and financial stability within the system.  as far as the obfuscation, the spin and the outright lies goes, this is typical of fed speak, but her voice is really grating on me to the point where I can no longer listen.  

Wed, 07/02/2014 - 11:50 | 4917925 Fix It Again Timmy
Fix It Again Timmy's picture

Janet Yellen??? You gotta be kidding me...She doesn't look like she could bake a batch of chocolate chip cookies if the only thing she had to do was turn on the oven and turn it off ten minutes later... JY Jelly - makes it easier to BOHICA.....

Wed, 07/02/2014 - 11:50 | 4917926 JR
JR's picture

Lagarde’s prophecy that “Monetary policy, and central banking, will not go back to what they used to be once the crisis is finally behind us” is dangerous. It means that we’re going to go from this crisis to some new kinds of crises because to go back to Ricardo, Mill and Say (before central banking) would be to solve problems and you can’t take over the world without creating problems whose solutions destroy freedom.

Simply said, pumping out more money to spend won’t help nations in economic crises if there is nothing to buy.

Says Law tells us that if “society works and produces, it will have the means to buy what it produces." Keynes Law - “if society spends, the goods will be produced” - fails to put the pride of place on production. Says Hunter Lewis, Keynes Law is “dangerous sophistry which impoverishes not only individuals but entire societies.”

Simply running money off the printing presses in the long run leads to inflation, not prosperity and growth. No country that wants to grow and prosper can do so without traditional savings, without economic incentives.

Paper printing by the crank Keynesian and Marxists Yellen and Lagarde cannot take the place of real labor, of real savings. Even Keynes knew this; he himself was a saver, nurturing and tending the investment capital he had mostly saved prior to 1919 until he became rich.

Wed, 07/02/2014 - 11:51 | 4917930 khakuda
khakuda's picture

So Janet, you won't raise rates to address the financial excesses that are caused by dangerously low rates?

That makes sense.

Wed, 07/02/2014 - 11:57 | 4917949 ebworthen
ebworthen's picture

I nominate "Macroprudential Oversight" for the Euphemism of the Year award.

Hell, maybe of the decade, and Yellen along with the bullshit phrase.

Wed, 07/02/2014 - 12:08 | 4917988 khakuda
khakuda's picture

Yes, it has taken over for "Quantitative Easing".  They make up BS phrases to confuse everyone and prevent debate over what they are actually doing.

Wed, 07/02/2014 - 12:06 | 4917970 I Write Code
I Write Code's picture

She's babbling something about low volatility that people aren't looking at risks?  WTF is she talking about, the Fed is engineering these numbers and she knows it well, there is NO WAY for even the most OBVIOUS future risk to manifest in these markets.  Janet babe, "ZIRP", look it up, ask your friends, look in the friggin' mirror wouldja?

Groan ...

... but no, she is NOT telling us BTFATH she is telling us something else but I cannot even begin to guess WHAT she means instead - sell now and hold gold?

Wed, 07/02/2014 - 12:09 | 4917990 huggy_in_london
huggy_in_london's picture

Why does anyone listen to lagarde?  She has no experience in finance.  She is a lawyer! 

Wed, 07/02/2014 - 12:20 | 4918036 TeethVillage88s
TeethVillage88s's picture

She is probably what is called a "Legacy"

She was born of High Blood, High Education, and perhaps like so many times in the USA... Her Family is recognized as having served in the Government Or Banking.

In the USA Legacy is when you follow your father or mother into a business making you a kind of expert or "Loyalist". We love Legacies for hiring the right kind of people with the right kind of politics. A follower you could say.

Wed, 07/02/2014 - 12:14 | 4918013 fzrkid
fzrkid's picture

come on correction, get on with it..

Wed, 07/02/2014 - 12:16 | 4918022 Market Rage
Market Rage's picture

No.  these asshats just keep passing futures back and forth.  If the indexes are lagging they just focus on NQ until the others come around.

Wed, 07/02/2014 - 12:14 | 4918017 TeethVillage88s
TeethVillage88s's picture

Damn I missed what Janet Yellen Said her "Primary Tools" were now that she has said Monetary Policy is a "Secondary Tool"

Guess I have to scan the Printed version.

Wed, 07/02/2014 - 12:19 | 4918035 TrustWho
TrustWho's picture

Per the Dunbass Senator Durbin, Yellen will just borrow power since Congress is impotent.

Wed, 07/02/2014 - 12:17 | 4918028 TrustWho
TrustWho's picture

Yellen is a MACROPRUDENTIAL IDIOT!

Wed, 07/02/2014 - 12:25 | 4918058 SanfordandSon
SanfordandSon's picture

Chairnanny would never do anything to hurt us.................

Wed, 07/02/2014 - 12:29 | 4918077 sbenard
sbenard's picture

The one necessary qualification to be a Fed Chair is to be a bold-faced LIAR. Yellen has that one in spades!

Wed, 07/02/2014 - 12:29 | 4918086 remain calm
remain calm's picture

I walk by the TV and saw Laggard interviewing Yellen.

Thats like Satan interviewing Hitler. Fuck we are doomed.

Wed, 07/02/2014 - 12:30 | 4918088 sbenard
sbenard's picture

Her mentor's policies caused stagflation during the Kennedy and Johnson administrations. Would we expect anything better from her?

Wed, 07/02/2014 - 12:40 | 4918132 Ragmar
Ragmar's picture

Her most revealing line, but not the first time she said this.

“At this point, it should be clear that I think efforts to build resilience in the financial system are critical to minimizing the chance of financial instability and the potential damage from it. This focus on resilience differs from much of the public discussion, which often concerns whether some particular asset class is experiencing a “bubble” and whether policymakers should attempt to pop the bubble. Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical. 

In other words, the banking system can handle the fall out of risk asset repricing.

Wed, 07/02/2014 - 12:41 | 4918134 Ragmar
Ragmar's picture

Her most revealing line, but not the first time she said this.

“At this point, it should be clear that I think efforts to build resilience in the financial system are critical to minimizing the chance of financial instability and the potential damage from it. This focus on resilience differs from much of the public discussion, which often concerns whether some particular asset class is experiencing a “bubble” and whether policymakers should attempt to pop the bubble. Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical. 

In other words, the banking system can handle the fall out of risk asset repricing.

Wed, 07/02/2014 - 13:58 | 4918258 TeethVillage88s
TeethVillage88s's picture

Thinking Outlaud

Janet's Speech seems to put the Onus on US Congress and the European Governments (EU).

In the private sector, key vulnerabilities included high levels of leverage, excessive dependence on unstable short-term funding, weak underwriting of loans, deficiencies in risk measurement and risk management, and the use of exotic financial instruments that redistributed risk in nontransparent ways.
In the public sector, vulnerabilities included gaps in the regulatory structure that allowed some systemically important financial institutions (SIFIs) and markets to escape comprehensive supervision, failures of supervisors to effectively use their existing powers, and insufficient attention to threats to the stability of the system as a whole.
It is not uncommon to hear it suggested that the crisis could have been prevented or significantly mitigated by substantially tighter monetary policy in the mid-2000s. At
- 5 -
the very least, however, such an approach would have been insufficient to address the full range of critical vulnerabilities I have just described. A tighter monetary policy would not have closed the gaps in the regulatory structure that allowed some SIFIs and markets to escape comprehensive supervision; a tighter monetary policy would not have shifted supervisory attention to a macroprudential perspective; and a tighter monetary policy would not have increased the transparency of exotic financial instruments or ameliorated deficiencies in risk measurement and risk management within the private sector.

I LIKE WHAT SHE SAID.

First, it is critical for regulators to complete their efforts at implementing a macroprudential approach to enhance resilience within the financial system, which will minimize the likelihood that monetary policy will need to focus on financial stability issues rather than on price stability and full employment. Key steps along this path include completion of the transition to full implementation of Basel III, including new liquidity requirements; enhanced prudential standards for systemically important firms, including risk-based capital requirements, a leverage ratio, and tighter prudential buffers for firms heavily reliant on short-term wholesale funding; expansion of the regulatory umbrella to incorporate all systemically important firms; the institution of an effective, cross-border resolution regime for systemically important financial institutions; and consideration of regulations, such as minimum margin requirements for securities financing transactions, to limit leverage in sectors beyond the banking sector and SIFIs.

I LIKE WHAT SHE SAID.

BUT THE PROBLEM is getting details and reforms out of the IMF, ECB, Fed. More important is GETTING REFORMS OUT OF Our FEDERAL, NATIONAL, or EUROPEAN Governments.

Legalized Slavery, Legalized Decapitalization, Legalized Banks saying Americans are Stupid, Unskilled & Lazy so we are shipping Jobs Overseas or Down Rating your Business...

WTF

Wed, 07/02/2014 - 14:02 | 4918443 TeethVillage88s
TeethVillage88s's picture

Here is where she is Naive (Or She Is Screwing US):

She assumes we think she knows what is happening to Consumers/Households

The Fed should be Coordinating like a Primo Intelligence organization (Stazi or KGB or CIA or NSA) with FTC, SEC, Local & Regional Federal Reserve Branches and the new consumer protection agency. Below is the Quote:

To date, we do not see a systemic threat from leveraged lending, since broad
- 16 -
measures of credit outstanding do not suggest that nonfinancial borrowers, in the aggregate, are taking on excessive debt and the improved capital and liquidity positions at lending institutions should ensure resilience against potential losses due to their exposures.

GREAT. For this Public "Dog and Pony Show" they even touch on Shadow Banking and risks there in.

No word of Violence to the Orifices of their Illegitimate Children(Inflation & Currency Collapse).

Bears Repeating:

Monetary Policy only benefits Big Banks and Fed Dealers. This is true since they have NO PATRIOTISM. Banks & Corporations don't go to war and sacrifice their lives. They don't deserve a VOTE. If Banks and Corporations are NOT Forming Good Capital Foundation (Companies, Expansion of work force, Manufacturing, Research & Development with Spin Off Companies)

Well... It must be up to Regulation & Federal Government. Capital Controls comes to mind. Tariffs. Let's GET Benefits from Foreign Investors who want to build in America in the form of anything: Taxes, Fees, Require Domestic Partners, Donations to Charities, Donations to Social Security/Medicare, or Donations to Unemployment or SNAP.

But I see Immigration as Suppression of Wages & Benefits too.

Open Borders proves the Hypocrisy of the Global War On Terror. Borders are open and H1B1 Tech VISAs are existing to benefit Corporate Investors. Some of them are probably US Congress who want to suppress the US Wage Rates.

Wed, 07/02/2014 - 14:12 | 4918541 Yen Cross
Yen Cross's picture

   Is "MACROPRUDENTIAL" some type of insurance you buy for protection when the Fed. and CONgress decide to do a "bailin" on your assets and bank accounts?

Wed, 07/02/2014 - 22:27 | 4920022 auntiesocial
auntiesocial's picture

Translation for the layman- we are going to keep all the money and keep you barely alive and on the neverending treadmill.

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