Elizabeth Warren Torches Janet Yellen on Too-Big-To-Fail

Tyler Durden's picture

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

Before you watch the video, I want to highlight an excellent article published this morning by Yves Smith over at Naked Capitalism titled, Yellen Tells Whoppers to the New Yorker. The title doesn’t do justice to the powerful and scathing critique of the fraud that is the current Federal Reserve Chairwoman. In a nutshell, the article exposes how Yellen’s acting routine is worthy of an Academy Award. In her role, she plays a caring, sweet, grandmotherly type figure all concerned about the poor and middle-class, when reality points to a career as a staunch, frontline protecter of the bankster oligarchy.

From Naked Capitalism (for background, much of the article is criticism of a propaganda piece on Yellen recently published by the New Yorker):

In other words, readers are supposed to take Yellen’s claims at face value, when the Fed’s policy of saving banks by goosing asset prices and convincing itself that ordinary people would benefit because the “wealth effect” would lead to more consumption. The result has been widening income and wealth disparity and corporate profits at record levels as a percent of GDP, meaning workers are getting less than they’ve ever gotten. Yellen as the head of one of the regional Federal Reserve Banks and member of the FOMC can’t escape from responsibility for these policies. And there’s no evidence of meaningful opposition; unlike some Federal Reserve presidents, like Charles Plosser and Dick Fisher, who have often taken issue with the Fed’s official position in their speeches, Yellen made little use of her bully pulpit at the San Francisco Fed.


Although these differences are significant, Lehmann overstates the dichotomy between monetarist followers of Milton Friedman and American Keynesians. In particular, Keynes himself debunked the “loanable funds” fallacy, that putting money on sale would induce businesses to take advantage of the cheap price and borrow and invest (the only ones that do are ones where the cost of money is a major product cost, and that’s financial players, who as we have found, plow it into speculation). Yet you see defenders of the Fed’s actions (usually making the argument that QE was beneficial, if less so than fiscal stimulus would have been) relying on “loanable funds” type arguments.


How about the most obvious answer, that Yellen is using this interview to run PR for the Fed. She leading a major institution that is under well-deserved criticism for its obvious preoccupation with banks during the crisis and post crisis period (and Lehmann takes note of that issue, pointing out that the central bank’s critics range from Rand Paul to Bernie Sanders). She’s trying to brand herself as a caring grandmother who can relate to regular folks because she came from the wrong side of the tracks, and the chump public should trust the Fed’s actions as embodying her professed world view. Lehmann promotes this effort to identify the Fed with Yellen’s supposed compassion for regular folk, starting with the article’s subhead: “How Janet Yellen is redefining the Federal Reserve.”


And this isn’t all she stood for. Contrary to her pious claims of empathizing with the downtrodden, if you read her testimony during the 1990s, she was regularly described by Senators during her tenure at the Council for Economic Advisers as one of the most hawkish members of the Administration. She advocated cutting veterans’ benefits. She pointedly refused to cite increased concentration in banking as an antitrust risk and approved of communications industry mergers. She supported cap and trade. She favored austerity for Mexico during its 1994-5 crisis. She also stood with Gene Ludwig complained about deadbeat borrowers declaring bankruptcy in 1997, which was tantamount to throwing her support behind the bankruptcy reform bill that eventually passed in 2005. Reversing that bill has been widely cited as one of the most powerful single steps the government could have taken to stem foreclosures, since the threat of bankruptcy would have forced more servicers to restructure mortgages.


At the Fed, Yellen is given more credit than she deserves for sounding some mild concern about rising housing prices. She’s also been cited as the best forecaster on the FOMC, but given how the FOMC failed to see the crisis coming, her “success” is tantamount to declaring her the winner of a height competition among peanuts.


Yellen’s contention that she’s really out to help little people would be far more credible if she acknowledged her past anti-middle class policy positions and claimed that she’d made a Pauline conversion. But her institutional and political loyalties preclude that.

Yellen’s acting performance is strangely reminiscent of one the most disingenuous crony billionaire operating in America today: Warren Buffet. There is no single person who has fooled more people, most of the time than hamburger eating, ice-cream cone licking, cherry coke slugging. “Uncle” Warren Buffet. As I wrote in the 2011 post, A Wolf in Sheep’s Clothing:

Anyone that has read these pieces for a while knows where I stand on Warren Buffett.  Namely I can’t stand him.  It has nothing to do with the fact that he has so much money.  I am not an envious person and moreover I think having wealth anywhere near his is more of a curse than a blessing.  The reason I can’t stand him is because he is a fraud.  While he may have been a great investor at one point, he is more of a great actor than anything else.  Here is one of the richest people in the world.  He sits there in Nebraska, chuckling, drinking his cherry coke and eating hamburgers in this pathetically obvious attempt to convince the masses he is “just like us.”  The term wolf in sheep’s was invented for guys like this.  Like most people out there I don’t like bad guys.  The trick; however, is that the most dangerous bad guys don’t come out and tell you they are bad guys and how they are going to fleece you.  What they do is pretend they are the good guys.  Pretend that they are on the side of the little guy or working for the “collective good,” which is a preposterous statement because there is no such thing.  Human desires and notions of what is a good life are as varied as the stars in the sky.  Once we start allowing officials or rich people to define “collective good” you can be sure we are finished.

Now here is Senator Elizabeth Warren torching the fraud Janet Yellen. Enjoy.


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Yen Cross's picture

 Hoo wahhh wahhh  . I can only hope. Anything is better than Hitlery!

daveO's picture

That's why she's getting all the publicity. The nation is screwed.

wee-weed up's picture

While I agree 100% about lyin' Yellen... I have major problems with someone like Fauxcahontas trying to call anyone out for dishonesty.

Bendromeda Strain's picture

Her "baby", the CFPB (which was taken from her), is now an unaccountable bureaucracy that is allowed to match up credit card expenses to identifying data. All for your own freaking good, serfs.

Thanks for nothin', bitch...

Save_America1st's picture

Elizabeth Warren is a dirt bag, just like all the rest.  Just because she says the right things doesn't mean a damn thing.  That's how these sociopaths operate.  Sometimes they actually will tell the truth, but it's only used as a mind fuck against the sheeple and so they can gain more power and control and wealth. 

Perfect example is that Alan Grayson douche bag out of Florida.  Yeah, he sounds great and as hard core against the Federal Reserve as Ron Paul when he talks about monetary policy.  He says all the right shit when it comes to that.  But that fucker is a lunatic, and the crazy came outta him big time during the obamacare debates before they rammed that bullshit through. Plus he's a big time TEA party hater.

He was so nuts that he actually got voted out during the next election cycle.  But then he contained the crazy the next time around, would not go away, and lied enough to convince the sheeple to vote him back in.  The election was most likely rigged in his favor because.

Warren is just another sociopath.  How come nobody holds her accountable for the lies she spewed about being native American indian in order to gain higher positions and political clout? 

Just another shameless, coniving, nefarious little scumbag sociopath like the vast majority of the political scum in this country.

Pig Circus's picture

I predict this cunt will beat that cunt Hitlery to win the Demoratic nomination in 16. Hitlery just isn't bat crazy enough for the bat shit crazy party. Not that it matters nor that I give a shit.

SuperRay's picture

Listen, Warren might be a rich insider, but at least she's asking questions that need to be asked. Unfortinately, not very well. The exchange should have gone

Yellen: there are tens of thousands of pages.

Warren: why are there so many pages?

Yellen: because it's so complicated

Warren: but the reg states that when it's that complicated, it's too complicated and needs to be broken up.


marathonman's picture

Think Warren would be any different than Woodrow Wilson, FDR, LBJ, Clinton, Obama?  I don't either.  All of those guys were sociopathic control freaks.  Warren will be also.  Her masters command it.

Oliver Klozoff's picture


She shoulda pounced on that like a hobo on a ham sandwich.

Toolshed's picture

The technique you describe worked perfectly for Obama.

Save_America1st's picture

yup...major scumbag sociopath right there...worked perfectly for him, and the dumbed down sheeple will just keep on believing these frauds

Harbanger's picture

Warren is an even bigger lying progressive fraud than Obama. 

ATM's picture

Liawatha is the same as Buffet. A shedevil in androgynous clothing.

sylviasays's picture

While U.S. Sen. Elizabeth Warren sleeps in her $5 million mansion in Cambridge, and got paid $350,000 to teach just one class at Harvard, she had the audacity to say in an interview with Jon Stewart that “the system is rigged to benefit the rich.”

Yes, Sen. Warren, that would be you. Under a free-market, capitalist system, you became a U.S. senator and multimillionaire whose own net worth hovers around $14.5 million. Sen. Warren is in a group of real elitists. As members of Congress, they are entitled to participate in insider trading. If you did it, and if you were found having done it, you would be headed to prison.

SemperFudge's picture

Every candidate who runs for president will be rich. Campaign finance laws have already made these candidates rich by the time they run for President. They commit to do interviews, make appearances at parties of private donors, sell books, etc. They exploit federal election and campaign finance laws and regs to increase the overall value of contributions and expenditures given to their campaign so they can spend on advertisements, strategists, consultants, wardrobes, etc. But by following this process, as a presidential candidate you are almost guaranteed to become wealthy.

max2205's picture

She calls her penis Clint

Wahooo's picture

Yes, the politicians and parties represent the interests of America perfectly. America for at least 100 years, maybe more, has been a nation run by and for the rich. The two parties are parties of rich people. To think that any of us poor and middle class are represented by any politician or party in Americha is simply naive.

oudinot's picture

Regardless of her personal wealth she is an intelligent, credible  counterweight to the TPTB and should be supported not denigrated as you have done in your comments.

How many seanators stand up to the banks in this congress?

FDR was wealthy but helped the poor; JFK was wealthy, hell, even George Washington was wealthy.  Obviously, being wealthy,'elitist'  does not preclude someone from 'doing good' for the people.

Grab a brain , buddy.

Weisshaupt's picture

Yes, they helped themselves to the wealth made by others and then gave it to he poor to buy power and votes. But don't worry, Little Red Hen, Warren coined Obama's "You didn't build that" rhetoric. You didn't build the roads or schools -- so obviously a bunch of people who didn't build the roads, work in the schools, or produce anything anything for anyone else ( except a Vote for Warren and her ilk) are entitled to your money.

Want to help the poor - teach them to provide for themselves - don't make them dependent upon others for survival and then claim we owe them for sitting on their butts and living off the effort of others and providing nothing of value but a reliable vote for sociopath politicians.

Not to mention she is a proven LIAR. She deserves to be denigrated, as do you. She isn't "standing up to the banks" - she is proposing robbing them to buy votes with the money. She doesn't have a problem with the banks thieving - she just want her piece of the action.

Let me guess, you were all in on Hope N' Change before Obama betrayed you as well? And you think other people need to grab a brain?

BigJim's picture

 FDR was wealthy but helped the poor

Gak! Pffffteeeew! Eaaaaarchhh!

oudinot's picture

Regardless of her personal wealth she is an intelligent, credible  counterweight to the TPTB and should be supported not denigrated as you have done in your comments.

How many seanators stand up to the banks in this congress?

FDR was wealthy but helped the poor; JFK was wealthy, hell, even George Washington was wealthy.  Obviously, being wealthy,'elitist'  does not preclude someone from 'doing good' for the people.

Grab a brain , buddy.

Weisshaupt's picture

The only problem Warren has with "Too Big to Fail"  is that her cronies didn't get the money.

She doesn't object to a spoils system - only a spolis system where she doesn't benefit enough - just like everyone else on the political left.  


Eyeroller's picture

Does Lie-awatha know something big is about to pop?

If so, then clips from the above video would have a huge impact in her presidential campaign.

drendebe10's picture

"There ain't nuthin uglier than an old white woman. "  Fred Sanford

BigJim's picture

"There ain't nuthin uglier than Fred Sanford. "  --An old white woman

rbg81's picture

You think Warren isn't an actor?  Trust me, she'll change her tune (+ her toon) big time if she ever becomes POTUS.  Just like another experience free, junior Senator who promised hope and change, only to become another cog in the Machine.

dirtyfiles's picture

poof and its gone....

boattrash's picture

"poof and its gone...."

Speaking of gone, did you notice the blonde behind Ms. Warren? Gone between 5 & 6 Min in.

IANAE's picture

'her “success” is tantamount to declaring her the winner of a height competition among peanuts'


...ahhh, the tallest midget argument...

Seasmoke's picture

She is a Tribesman. 

bunnyswanson's picture

Not just a member of the tribe, but a little old lady, who requires time to spit out a thought, unsure at every turn about every answer but wanting to answer the question with no information at all.  We'll have a look at that and get back to you.

~They~ have chosen women in place to cause pause..granny wouldn't hurt a fly.

These ~people~ are despicable.  It should be a crime to answer a question with so many words that say nothing at all.  Manual:  Just eat up time Janet.  Then jump on the few available lifeboast with the rest of us, we'll watch the Titanic sink and make a toast with the finest sparkling wines before throwing the empty bottle at the sinking vessel....Mission Accomplished.  By Deception"

Crawdaddy's picture

TribesWOMYN you patriarchal bastard.

disabledvet's picture

In other news "Kosovo is getting stomped on. again."

What I find hugely ironic is "the market agrees with her" (meaning Yellen and treasuries.)

That's her job...safeguard the debt. Everything else is just Wall Street "blowtardism."

I am curious if a woman can just find herself standing there holding her dick in her hand like a man can. That's what days like today mean. "DIE PUNY HUMAN!"

As far as Elizabeth Warren goes she might as well be handing out speeding tickets at the Indy 500. "We don't need six million barrels of oil a day but more like sixty." She needs to google search "Hanna Reich" to get her head in the game here.

tickhound's picture

In other, other news...

RanSquawkOntheStreet UPDATE: Subsidiary Corporate Whore to Disney Zerohedge announces...


So even though you may be experiencing limited access, or are unable to reply, or are unable to search, or are unable to view the site without various bullshit floating around on your browser...

The problems have been resolved.

Et tu brute?

This site, like everything else, is falling off a cliff.

Ariadne's picture

The Giant Hole American Edition

RaceToTheBottom's picture

One two punch. Question is, who is one and who is two?

loveyajimbo's picture

Here is a  novel idea... how about an in-depth AUDIT of EVERYTHING that the Fed has done for the last 30 years?  Include in that a full audit of all physical gold, AND it's current and past encumberances... OR... a complete written explanation of every congressman that votes no on a Bill requiring such an audit... and why this audit is not reasonable and necessary...

blindman's picture

the head of the federal reserve is a female, what?
how did that happen? next thing you know ...
representative government with democratic tendencies
might break out in the form of public delusion.
it is a crazy life she said.

kahunabear's picture

I am very apolitical, but Warren is pretty much a rock star here.

Weisshaupt's picture

Let me guess-  Was Obama a rock-ster "there" a few years ago? 

Same old dupes. 


Agent P's picture

This was fun to listen to while looking at the girl behind her.

TheLooza's picture

I waz looking at her the whole time too and too big to fail for the entire 7 minutes, myself.

Setarcos's picture

Me too, but clearly a vacant Bimbo good for only one thing, if she is not a feminist lesbian ball-breaker.

Who can tell these days.

Look nice can be pure bitch in a flash.

How do you tell the difference between a woman with PMT, or the menopause, and a terrorist?

With a terrorist you might have a chance of reasoning.

There are not many nice little old ladies, but there are plenty of nasty little girls who have stopped looking nice, such as Hitlery Clinton and Maggot Scratcher,

Yeah I have been bitten bad - lost severall houses and a much-loved daughter - but I remain a sucker, or would do if I retained my younger urges,

Socrates observed that an advantage of getting old is that one loses sexual impulses.

Ban KKiller's picture

She looks like a skank to me. A bank stooge of some sort...an extra in the role of a woman.

Spungo's picture

Bitch, my tribe throws better spears than your tribe.

GreedKillz's picture

Elizabeth Warren has been living off the Government since the 70's. She never had a real job like Obama and 

lived off her husbands money he made while working at NASA so don't give Warren any credit. She hasn't accomplished anything.

johnberesfordtiptonjr's picture

Jamie... Jamie Dimon, is that you?

williambanzai7's picture

I suppose if we are going to pay people, better to hear them attack people we don't like.