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How to Make a Million Dollars From Owning Stocks… Become a Fed Chairperson
Imagine… if you could press a magic button… and your wealth expanded by hundreds of thousands…if not millions of Dollars.
Imagine the power you’d feel… not to mention the financial security… knowing that at any point, if things get shaky with your investment portfolio, you could simply hit that button (or sometimes just promise to hit that button to the world) and you become richer virtually overnight.
For most people this is nothing more than a pipe dream. For the officials at the Federal Reserve, it’s a reality.
As everyone now knows… the Fed’s monetary policies are directly aimed at pushing the stock market higher. After all, the Fed’s own research shows QE to be a complete failure at generating jobs or GDP growth. And if you divide the NYSE by the Fed’s balance sheet, you get a straight line, showing that all stock gains are directly correlated to the Fed’s balance sheet expansion.
Lost amidst the pages of research written about this is the fact that Janet Yellen and most officials have profited personally from this.
Indeed, since 2011, Yellen’s net worth has risen somewhere between $900,000 and $1.7 million.
And the bulk of the money she made came from her investments in stocks.
1. In 2011, Yellen between $4.4 million and $12.4 million in assets (her financial disclosures are presented in a range).
2. As of 2012, Yellen had between $4.8 and $13.2 million in assets.
3. By 2013, Yellen’s had between $5.3 million and $14.1 million in assets.
It’s extraordinary, really. Can you imagine how Yellen must feel having made over a million dollars from her investments… investments which directly profited from her decisions as Fed Vice-Chair (2010-2014) and Chair (early 2014 to the present)?
Yellen is not alone by any stretch. Most Fed Presidents (the very folks who vote on whether or not the Fed should engage in more money printing…and who also decide to appear on TV or give speeches talking about engaging in more money printing) have profited handsomely from the stock market rising.
The rest of America… not so much. According to data from the Federal Reserve, only 13.8% of US families own individual stocks. Granted that’s individual stocks… but even if you include 401Ks and other stock-based retirement plans through which Americans have indirect exposure to stocks, you’re still talking about less than half of the US (48%) profiting from the Fed-fueled market rally.
So… QE has failed to boost employment, failed to create sustainable job growth, and has benefitted less than half of Americans even by the most liberal estimates possible… just why did the Fed spend over $3.5 trillion again?
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
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http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Phoenix Capital Research
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This might be a good time to point out in an investigation about two years ago 60 Minutes uncovered evidence of several instances of insider trading among prominent government officials. In a hurry then to save our public servants from embarrassment, President Barack Obama jumped on board. "Send me a bill that bans insider trading by members of Congress," the president declared in his 2012 State of the Union address. "I will sign it tomorrow."
The bill sailed through the Senate on a 96-3 vote, passed the House 417-2 and Obama promptly signed it, noting that its disclosure, and accountability requirements would apply to and demand transparency from virtually everyone in government who had access to inside financial information. Now this has been undone, my tip off was a April 27th 2013 Chicago Tribune editorial that reported Congress had voted to repeal part of the STOCK Act that recently became law. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/04/washington-insider-trading-is-bac...
Press and squirt madam chair, just press and squirt. Conflict of whatnow...?
You can keep posting reasons why DC needs to be burned to the ground, but us peasants still won't rally. And govt conditioning aka "public schools" is the reason why.
I almost made it without stocks...then they zeroed the interest rates.
Anyone with a pension plan indirectly owns stocks. that is not the entire population but certainly more than 13%.
Will they always land right-side-up ?
See
http://andreswhy.blogspot.com/2014/11/roman-dodecahedra.html
or
https://www.academia.edu/9373045/Roman_Dodecahedra
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Don't these people have to publish their investments, their plays on their insider knowledge, to prevent this exact thing?!?!?!
Oh, Gawd, we are so F'd.
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V-V
Where did Janet Yellen even get the money to invest to become worth $14 million in the first place? Nothing but government jobs. Never started a business and built it into a household-name product or service. Bet you don't find many schoolteachers or firefighters worth $14 million.
I believe she and her husband report with a combined value.
In any case, she has been employed in a well paying job for many years with joint adequate income to add to savings and let it compound. As noted in another comment, once the balance becomes over $2 million, just normal returns are pretty large amonts in absolute terms.
"Yes, Mr. President, where can I find a job?"
"We hope that, in the future, we never have to answer questions like these again".
...Or something like that, from "I think we're all bozos on this bus", by Firesign Theatre.]][]
We should make the law in a way that if you work for the fed, congress, president, or any "high" office, you are not allowed to invest, nor is your family allowed to invest while the office is held. The penalty for breaking the law should be death. See how many people want to be fed chair then. The salary will be $70k per year.
Wow Graham...you really worked hard on this post! How long did it take you to lay down these insightful and wise thoughts...about 10 minutes?
I am sooooo glad that I listened to you 3 years ago about the crash. I know you've been dead wrong, BUT I just know so deep in my heart that you will be right...ONE day!
I am nominating you for the JOURNALIST OF THE YEAR AWARD because of your hard hitting reports here! Also, your generous use of "folks" always makes me feel down home and cozy! You're a real pal Graham.
Wow Graham...you really worked hard on this post! How long did it take you to lay down these insightful and wise thoughts...about 10 minutes?
I am sooooo glad that I listened to you 3 years ago about the crash. I know you've been dead wrong, BUT I just know so deep in my heart that you will be right...ONE day!
I am nominating you for the JOURNALIST OF THE YEAR AWARD because of your hard hitting reports here! Also, your generous use of "folks" always makes me feel down home and cozy! You're a real pal Graham.
SInce "QE" or artificially boost the stock market, all stock gains by Fed Employees should be seized and those with stocks should be prosecuted for insider traiding.
or have your Japanese friend do it for you....much more discrete...
More importantly, how did her net worth get to be $4.4M - $12.4M before 2011?
"since 2011, Yellen’s net worth has risen somewhere between $900,000 and $1.7 million."
So in about 3 years she made $1.7 million or about $566,000 per year. On "between $4.4 million and $12.4 million in assets"
Assuming her asset are at the middle of the range at about $8 million thats a return of 7% per year. Big whoop. Even I have done better.