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Annaly CEO: Central Bankers Are Witch Doctors, Demands "Return To Market-Driven Pricing"

Tyler Durden's picture




 

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

The story of bloodletting is intertwined in the mysterious fabric of medical lore; it originated from magic and religious ceremonies. The physician and priest were one and the same since disease was thought to be caused by supernatural causes. Witch doctors and sorcerers were called on to drive out the evil spirits and demons. Bloodletting was a method for cleansing the body of ill-defined impurities and excess fluid. The early instruments included thorns, pointed sticks and bones, sharp pieces of flint or shell, and even sharply pointed shark’s teeth. Miniature bow and arrow devices for bloodletting have been found in South America and New Guinea. A small bloodletting instrument resembling a crossbow was once used in Greece and Malta. Wall paintings dating from 1400 B.C. depict the use of leeches for drawing blood from human beings.

 

– From a PBS article: A Brief History of Blood-Letting

*  *  *

On a conference call today to discuss the mortgage-investment firm’s earnings, the chief executive officer talked about “blood-letting,” a “popular prescription for many ills” until the late 1800s, and the similarly abandoned view that life could be created by spontaneous generation to explain her “healthy dose of concern” over the potential results of all the stimulus.

 

“My hope is that as policy makers of the world continue to prescribe their remedies for the ailing economic patient, that they do not render it worse off,” she said. “As with their predecessors, I suspect there is no doubt in the minds of our central bankers that they are the smartest they’ve ever been. Yet, I fear they are not the smartest they will ever be.”

 

– From the Bloomberg article: Annaly’s CEO Sees Central Bankers as Possible Blood-Letters

One of my greatest frustrations during the post-financial crisis period has been the unwillingness of the rich and powerful to call out central banking for what it is: financial slavery. While I accept that many are simply ignorant or brainwashed, there are plenty who know exactly what’s going on and are merely trying to make as much money as possible from the Federal Reserve created scam before the music stops. For those with influence in society, this is a highly unethical choice.

I have to give credit to Annaly CEO, Wellington J. Denahan, for her harsh, and in my opinion accurate, criticism of central bankers. Bloomberg reports that:

(Bloomberg) — Annaly Capital Management Inc.’s Wellington J. Denahan said she thinks central banks’ efforts to revitalize their economies may one day be seen as the 21st-century equivalent of the medical belief in the benefits of bleeding patients.

 

On a conference call today to discuss the mortgage-investment firm’s earnings, the chief executive officer talked about “blood-letting,” a “popular prescription for many ills” until the late 1800s, and the similarly abandoned view that life could be created by spontaneous generation to explain her “healthy dose of concern” over the potential results of all the stimulus.

 

“My hope is that as policy makers of the world continue to prescribe their remedies for the ailing economic patient, that they do not render it worse off,” she said. “As with their predecessors, I suspect there is no doubt in the minds of our central bankers that they are the smartest they’ve ever been. Yet, I fear they are not the smartest they will ever be.”

 

While her remarks were meant to illustrate “how history is littered with longstanding theories and beliefs that ultimately prove incorrect,” Denahan isn’t the only financial CEO to offer comments about central bankers referencing blood-letters.

 

“Much like Theodoric of York, the medieval barber on ‘Saturday Night Live’ whose solution to every health problem was more bloodletting, central bankers continue to force liquidity in the banking system without any objective proof that it is helping,” Alleghany Corp.’s Weston Hicks said in a 2013 letter to the New York-based insurer’s shareholders, referring to a Steve Martin character on the television show.

 

“As we have stated many times before we welcome the return of normalcy to the markets,” Keyes said. “This includes the return of market-driven pricing and volatility.” 

Well said.

*  *  *

For related articles, see:

Matt Stoller Destroys Timothy Geithner in His Epic Review of “Stress Test”

Tim Geithner Admits “Too Big To Fail” Hasn’t Gone Anywhere (and that’s the way he likes it)

Video of the Day – Elizabeth Warren Torches Janet Yellen on TBTF

Video of the Day – “End the Fed” Rallies are Exploding Throughout Germany

New Survey: Federal Reserve Employees are “Demoralized,” “Distrustful” and “Afraid to Speak Out”

 

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Sat, 02/28/2015 - 15:17 | 5840099 Yen Cross
Yen Cross's picture

EBOLA

Sat, 02/28/2015 - 15:49 | 5840189 y3maxx
y3maxx's picture

the USSA's single plan to remain on top is to bankrupt the rest of the planet first.

Sat, 02/28/2015 - 16:03 | 5840225 angel_of_joy
angel_of_joy's picture

Central planning is the perfect tool to bankrupt your own country. America seems dead set to follow the glorious model demonstrated earlier by USSR (because we are soo fucking exceptional, unlike those dumb Russians). As for the rest of the world, it will smile, shrug, and move on...

Sat, 02/28/2015 - 16:46 | 5840334 Son of Loki
Son of Loki's picture

"If you want to keep your VooDoo economics, you can keep your VooDoo economics."

Sat, 02/28/2015 - 17:43 | 5840463 negative rates
negative rates's picture

Late 1800's? The practice was stopped after George Washington crys for healing on his deathbed were instead met with a bleeding of the neck, which resulted in cardiac arrest and the death of George Washington. We have learned little since execpt how to spin our version of history to suit the particular needs of todays spinmasters. 

Sat, 02/28/2015 - 18:49 | 5840673 max2205
max2205's picture

She doesn't know about the nail gun?

Sun, 03/01/2015 - 00:22 | 5841625 ml8ml8
ml8ml8's picture

Everyone knows CBs distort the hell out of bond markets.  They publicly state, for example, that to give effect to QE they will buy bonds to reduce supply, drive up prices, and lower yields/interest rates all with the hope this will stimulate the economy.  So long as the Fed does this slowly and with announced intention, it is possible (though not easy) to distill some signals from price fluctuations that occur around the Fed's bond buying activities.

My biggest worry is that the Fed is secretly doing the same in equity or commodity markets, distorting prices there unbeknownst to all.  It's public information that the Swiss National Bank buys US and other equities (you can see, for example, SNB's NASDAQ portfolio here http://www.nasdaq.com/quotes/institutional-portfolio/swiss-national-bank...) and the BoJ has stated their intent to buy ETFs and presumably other equities (though I am not aware of any disclosure of the BoJ's holdings, not in English, anyway).

I just hope the Fed isn't secretly undertaking any activity that directly distorts equity prices, either buying or selling equities, ETFs, futures, or options in equities or equity indexes.  

In this rabbits humble opinion, that activity from the central bank of last resort would truly destroy price discovery, the beating heart of capitalism.

 

Sat, 02/28/2015 - 23:35 | 5841508 one_hundred
one_hundred's picture

my co-worker's mom makes $87 an hour on the laptop . She has been without work for 8 months but last month her pay check was $15653 just working on the laptop for a few hours. try this website... www.globe-report.com

Sat, 02/28/2015 - 15:22 | 5840120 Winston Churchill
Winston Churchill's picture

Mr Yellen would look better with ten rings around her neck, and a bone

thru' that proboscis.

Mind, even, even better giving her last words from the scaffold.

Sat, 02/28/2015 - 15:25 | 5840133 saveUSsavers
saveUSsavers's picture

Spare us the ridiculous PBS BS preface, JUST THE FACTS PLEASE.

Sat, 02/28/2015 - 15:39 | 5840169 NoPension
NoPension's picture

How can any of this be deemed a failure?
Politicians get re-elected guaranteed. They break the law, and nothing happens. Worst they get busted for selfies of their dick.
Banks launder money in the billions, and pay hush money to .gov and get a slap on the wrist. They are back in business in 24 hours. ( hsbc?)
Corzine. It's a verb now. Need I say more?
Meanwhile, the plebes just want football and DWTS.
.gov leaches getting their gold plated pensions, no worries.
Pay your obama care bill or fine, bitch.
Unemployment is 5% and falling.
Immigrants make things better.
Inflation under control. Economy is growing. Green shoots everywhere.
Homeland security keeping us safe.

What's the problem, whiners?
And the beat goes on.

Sat, 02/28/2015 - 15:39 | 5840171 DOGGONE
Sat, 02/28/2015 - 15:41 | 5840178 q99x2
q99x2's picture

The FED is worse than a melted down nuclear reactor.

Sat, 02/28/2015 - 15:47 | 5840192 kwatinhu
kwatinhu's picture

We are not only "not it Kansas anymore Toto" we ain't even on this planet anymore with the gooblygook that passes for public information anymore. I wouldn't trust this government ( R or D ) if they told me the sun is in the sky, without checking for myself

Sat, 02/28/2015 - 16:41 | 5840318 Sages wife
Sages wife's picture

Just ask Bob Dylan. "You don't need a weatherman to know which way the wind blows."

Sat, 02/28/2015 - 15:53 | 5840202 Yen Cross
Yen Cross's picture

' A Storm is A Brewing' Next week.

 16--17---18 PE's are looking very rich.

Sat, 02/28/2015 - 16:13 | 5840257 Winston Churchill
Winston Churchill's picture

Only algos holding this POS up right now.

A flick of the switch, and we will see S+P 666 again whenever TPTB want it.

Sat, 02/28/2015 - 16:01 | 5840223 joego1
joego1's picture

I think it's more like blood sucking.

Sat, 02/28/2015 - 16:38 | 5840315 Nels
Nels's picture

Financial slavery isn't a problem for those who intend to be the masters. 

Ms Denaham seems to be misinformed, QE is fixing the banks just fine, and enriching our future masters admirably.  As a borrower, NLY is simply not in the target audience that QE was intended to help.

Sat, 02/28/2015 - 16:45 | 5840330 wendigo
wendigo's picture

Freedom is never voluntarily given by the opressor. It must be demanded by the opressed. MLK

Sat, 02/28/2015 - 17:42 | 5840461 Clowns on Acid
Clowns on Acid's picture

What took her (woman's name = Wellington?) so long ? I and others have been commenting on this for 4 years...

Sat, 02/28/2015 - 19:19 | 5840784 Niall Of The Ni...
Niall Of The Nine Hostages's picture

The free market? In the free market, people lose money, go out of business and lose their jobs for incompetence. The whole point of central banks is to make sure that that doesn't happen on Wall Street to people who matter. Consequences are for proles.

Sat, 02/28/2015 - 20:07 | 5840935 lasvegaspersona
lasvegaspersona's picture

Thank goodness we now understand illness is caused by pH and gluten and can now be managed with colon cleanse.....cept for the real stuff of course.

Sat, 02/28/2015 - 21:30 | 5841169 Itinerant
Itinerant's picture

Economists are like medicine men: When rain is plentiful, the streets are wet. So when there is lack of rain, they try to get it to rain by making the streets wet. Economics works the same way. When capital is plentiful and the economy is humming along, interest rates are low. So when the economy won't hum and the banks are capital impaired, they think forcing interest rates lower by buying debt (liquidity) will cause the economy to pick up. Exactly the same mechanism, even the same metaphor.

Sat, 02/28/2015 - 23:58 | 5841565 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Central Bankers are worms meat. Central Bankers were rendered defunct when the Casino Capitalism Ponzi scheme fell to pieces as Bear Stearns imploded during the bear raid on March 10th 2008. For the last seven years every Economist in the World has complained about the performance of the Economy. In point of mathematical fact, the 'economy' is not going to come back at all. The only possible outcome is that the next business quarter will be worse than the last until all the music stops all over the World. What manifested when Bear Stearns went down is NOT understood whatsoever. When the entire banking system implodes once again, people will start to get that the economy is never coming back, ever.

Sun, 03/01/2015 - 11:14 | 5842405 nakki
nakki's picture

What has happened to the people that read this site? 25 comments, and I'm the first one to see the humor in the fact, that the CEO of ANnALY, feels that the Central Bankers are Blood Letter's of the world. While I definitely agree with her, I'm thinking as the CEO of ANnALY, I would have used a more colorful way to describe what the Central Bankers of the world have been doing to the majority of the worlds population.

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