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Did Yellen Just Throw Greenspan/Bernanke Under The Bubble-Blowing Bus?
Reflecting on the rate hikes undertaken in the 2004-2006 period (ensuring the world not think that The Fed would repeat that) Janet Yellen appears to have thrown Greenspan and Bernanke under the bubble-blowing bus with an off the cuff comment that "with hindsight, The Fed should have hiked rates faster," during that period...
Which is odd since we assumed it was The Fed's job to inflate financial assets to prove the real economy was doing great?
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in bubbles we trust
Bitch needs to get her bubble on.
There's always a bubble to be blown. ALWAYS!!!
NEXT?
silently stealing by dilution is their mandate. the result to create debt slaves of all of us, and to capture all assets through boom and bust it creates. one day it may be called treason.
The Federal Reserve: The Greatest Scam in History -- The Yellen Effect
everyone needs to relax. this has all been pre planned. Yoda was meant to be the fall guy when the SHTF.
There is no try. There is only Fuck You.
Everything is hindsight guys. This shit will pop too. New lessons will be learned by the old fat cats at the Federal Reserve. It is all a learning excercise for them. You think they really care what happens to common folks on the street.
she stole that line from Oblamo playbook. If you are in a mess, blame your predecessor.
I think she has clearly realized she is on a Snipe Hunt - predeceesors snokered her into the job.
NoVa
.GOV is bankrupt. The unfunded liabilites and interest thereon cannot go up even 1.5%. In addition, the big western banks engaging in fractional reserve lending are always, by definition, insolvent. The entire system is dependent on credit, and rates cannot go up in the terminal phase of a credit economy.
If they could, rates would have gone up by now. It's been 9.5 years since the last rate hike.
She's a 100% liar. They are going to do 2 things: Start a war, and kill the dollar through revaluation. It will be the hidden inflation without a rate hike.
http://thedailyshow.cc.com/videos/uc9y5b/cnbc-financial-advice
"...should have hiked rates faster..."
Oh sure Janet, and you're going to do more faster?
2% hike this September and another 2% in January? Disingenuous bullshit!
0.25% Sept. rate hike then a 0.25% Dec. rate cut is more like it, you hag.
"They could have turned lead into Gold with more heat on the pot and more ash in it."
Fucking economic alchemist's.
And I bet we will see negative interest rates in the future.
Contemplating whether or not the current Fed could interfere with the market better than the previous Feds is pure hubris. Criticizing prior actors for not doing X or Y is simply begging the question.
The underlying predicate must be addressed.
Mr. Yellen will shortly announce acquisition of a time machine…
New twist...rather than raise rates now, she can just say 'I would have raised rates in the past', brilliant work ChickenHawk.
Breaking Dead Banker
http://www.reuters.com/article/2015/06/17/us-jpmorgan-lee-idUSKBN0OX2GO2...
That will be a wonderful day.
we'll see PLENTY more of the blame game in the future, especially once the boat sinks.
Typical Fed PSY-OP. Suggest that rates should have been raised further/faster by predecessors to create expecation that we're rate hike friendly and poised to do it when expedient. Same old song - that record is skipping to the beat.
http://roacheforque.blogspot.com/2015/06/the-feds-rate-hike-narrative.ht...
Nice article. I'd like to see a followup on,
"If you could see what certain insiders fully well know, you actually COULD predict the future (of interest rates) based on these interest rate derivative positions alone."
the 268 page BIS report you reference above.
What a tool.
Would love to think Yellen is a "tool". However, when you consider who she is truly working for (the elite, banks, etc.), Yellen and her predecessors have been quite useful assets.
Always ask "Sui bono", who benefits? Who has gained tremendously from the Feds policies for the past number of years? It is clearly not the average American, nor the majority of Americans. They have suffered loss through the weight of debt and the erosion of their purchasing power.
It has been the American oligarchs and corporations and globalists (think Soros) who Yellen must cater to each day.
So when you say "what a tool", in essence you are quite right. She, Bernanke and Greenspan have been very useful tools.
Rather difficult to statistically dismiss ethinicity issues in the line of FED chairmen. If it walks like duck, talks like duck...
"Cui bono"
And her successor will say the same.
"with hindsight, The Fed should have hiked rates faster,"
Let's see when she hikes
It won't be for the next 12 months
if ever.
The US is in a deep recession if you calculate inflation accurately.
I believe the last rate hike was in June 2006.
WTF?
In 2006, US debt and unfunded liabilities were under $100 trillion. Now they exceed $170 trillion.
Suicidal to increase rates today in a bankrupt nation.
some people paint
others prefer to print themselves into a corner
The BS is thick with this "chairperson"...
The Fed is a monetary cancer.
But they're more! They're thieving murderous criminals too!
With Hindsight, we now know why the FED was created in secret after bribing or blackmailing all the politicians in 1913.
Are you speaking of the Feral Reserve, Sir?
feral, adjectiveI do believe you are onto something!
They have thrown the world under the bus
Correction......... they have thrown the world under the bus EXCEPT ISRAEL. The only thing that matters to them
Oh, they will throw Israel under too once the Khazarians have spruced up Ukraine for their homecoming.
Fuck Bernanke, fuck Greenspan, and fuck the money munchkin too
that was unscripted. she will correct at her next speech, or tweet it tonight. and stocks can soooarrr some more. otherwise, an unexpected heart attack may be in the near future of this disgusting bitch.
The current term for that is "walking it back". If they're talking about some possible future action they call it a "trial baloon."
But in no case will they walk back what they shoved in your baloon knot the last 100+ years.
a nailgun "accident" would be more telling ...
Then why isn't the stupid cunt raising rates now ?
Yup. Hypocrisy at its finest.
You must be a reporter. You will be shown to the door and summarily executed. Have a nice day!
Splitter!
Should have hiked rates faster??? You mean like the blistering pace we are on now?
.
With all the gun-crazed, grade-school mass murderers and the rest of their family, how is it that not one of them has happened upon the most deserving target yet!
This surely has to be a matter of probability; and, thus, only a matter of time...
Well then show us what you are made of Janet... Raise rates right now or shut the fuck up. To hell with it, just shut the fuck up.
So ..... no market correction this year I guess?
"Rates will not normalize in my lifetime" The Berskank
what happened to tribal loyalty? this "new" breed of kikes needs a lesson
She's so full of shit. Nothing but "song and dance signifying nothing" What complete bullshit these people are considered pundits.
I can't wait to read Stockman's tirade on this.
David, what say ye?
Stockman: "this time the FED has lost all credibility abd should this be a surprise to anyone since the FED lost all credibility since 1987. The appartichicks will keep this price party blown to the max for as long as the bond market keys then can gett away with it. But the party ends with severe capital dislocation abd ab unemployment rate birth of 10%"
She's got eyes in her hind?
For the plan to be successful, the Fed MUST be discredited and must be made to implode (artificially of course, because an entity dealing in phantom shit cannot implode ... it can only stink, really bad.) so that the global system can replace it.
... and pope Francis, the traitor of humanity (maybe he is the false prophet), is preparing the way to the gallows for his "flock".
Mr. Yellen is All Hat, No Catalyst.
she cunt be serious
Freudian slip, Yellen to the reprogramming room Yellen to the reprogramming room!
LOL. In hindsight she realizes that she's the chump and the fall guy for the coming collapse.
Precisely. No one will remember Bernanke or Greenspan when SHTF. But Yellen... She's going to be one popular toad!!!
Bush caused the financial meltdown according to progressive media. One more QE chlorine pool shock to balance the economy PH algae level.
->>>>>> { Yellen can get it right this time around. } <<<<<<-
We'll try to raise rates by 0.0001% some time in the next..... 30 years. Maybe 40. Depends on snow and stuff.
Don't forget an endless supply of "seasonal adjustments."
Whatever the fuck that means...
anyone else hear her response to the LA times reporter who asked about questions he gets about they will never raise again? he said "can you give an iron-clad guarantee you will raise rates again" ... she TRIED to joke saying "while i can't give you an iron-clad guarantee about anything ..."
F
U
C
K
Wasting away again in ZIRParitaville, Searching for my lost shaker of fault. Some people claim there's a male banker to blame, but I know...
tolda ya so. No rate hike EVER until the Fed blows itself up. There's no mathematical solution to this ongoing economic crisis along the path they're traveling.
Let me be clear, there is no Fed equity market put.
William C. Dudley, NY Fed CEO
Bernard M. Baruch College, New York City
December 1, 2014
Not true.. CBO claims only a 78% GDP to national debt that can be solved, but not painlessly and yes the FED will have to take the biggest hit. They have stumbled into the taxable realm. All those bail-outs are illegal thus taxable. Remember how they got Big Al?
NATO, the IMF, divisions, Grexit… Looking out to 2020: the return of European wars ?
http://geab.eu/en/nato-the-imf-divisions-grexit-looking-out-to-2020-the-return-of-european-wars-2/
"...with hindsight, The Fed should have hiked rates faster," during that period
In sight that is hinderererer, maybe not force the rates at all in any period?
they raised rates 17 times in a row , a case to be made? The only case to be made are the banks giving out variable interest loans and no salary verifications.
JPMorgan Chase & Co. Vice Chairman James B. “Jimmy” Lee died unexpectedly Wednesday morning, the bank said in a statement from Chief Executive Officer Jamie Dimon.
Looks like they killed him with poison or something.
Yellen reminds me of the Heaven's Gate cult leader, the crazy eyes, the "not quite human" persona. Its mouth moves, words come out, but somehow none of it seems real. Very strange. Where does the government find these creatures?
They grow them.
When it comes her time
You're going to need a bigger bus !
Man, do I fancy Janet, always wanted a bit of Fed arse!.
Janet has a Bubble Bus?
I really hope we don't have to be put through a Kardashian-like photo spread.
lol.. NOT bubble BUTT
keep calm and.......
[find a way to]
enjoy the low rates....
they will be here for a while..... (eternity maybe)
unless the .gov becomes responsible... all of a sudden... -lol
FED should just make kitty videos instead of meeting minutes.
Participants in Myrick's study reported:
http://www.eurekalert.org/pub_releases/2015-06/iu-npv061615.php
FOMC Day: There Has Been No Recovery; The Housing Bubble Is Re-Popping - Dave Kranzler
http://thenewsdoctors.com/?p=470751
Let's be clear. Yellen could remonitize the banking system to a vastly higher price of gold this Saturday and end all this currency war, crap asset purchasing programs worldwide. That's what she should be bemoaning about what wasn't done before she took hold of the steering wheel rather than the greatest welath transfer and socialization of losses in all of human history. But of couse, that would go against the interests of those that pull her strings.
that's one white on white cracker there,
.....I'm think'in I can self identify as milky white.....
Note to Janet Yellen:
In many households, the woman is responsible for the budgeting and keeping the finances in the black. What's your excuse?
Yellen is a patsy. Always was.
Apparently a bit smarter than everyone expected though. Not smart enough to resign and let someone else take the fall though.
Well Peter Schiff said it long ago already, if they actually wanted to raise rates they would do it already. This is but a more BS squeeze to get as much from the market reaction free as possible.
In hindsight the Fed should have raised rates sooner - now as for today, we are not going to keep rates at historic lows for even longer.
Janet Yellen Exposed...You have seen it here first!
https://scontent-lga1-1.xx.fbcdn.net/hphotos-xat1/v/t1.0-9/11125266_9716...
Where do they find these financial sociopaths???
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=14001
JESSICA DESVARIEUX, PRODUCER, TRNN: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore.
So the big question in the world of economics is whether or not the Federal Reserve will raise interest rates and end their bond buying program known as quantitative easing. Chair Janet Yellen will give a quarterly economic and interest rate forecast at a meeting between June 16th and the 17th. But what would her announcement mean for everyday people? Joining us to discuss all this and the man behind the Hudson Report is Michael Hudson. Michael is a distinguished research professor of economics at the University of Missouri, Kansas City. His latest book is Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy.
Thank you, Michael, for joining us.
JESSICA DESVARIEUX: So Michael, just briefly can you start by explaining how quantitative easing works, for our viewers?
MICHAEL HUDSON, PROF. OF ECONOMICS, UMKC: The Federal Reserve created $4 trillion worth of credit electronically on its computers when the economy was in trouble in 2008. It could have used this $4 trillion to write down the debts. It could have used it to spend into the economy and create sort of a recovery. But instead it gave all the money to the banks, and its claim was that if you give $4 trillion to the bank reserves this is going to help the economy, because the bank is going to lend more money to the economy and drive it in, $4 trillion deeper into debt.
This was a crazy idea. Here we were in a debt crisis, and the Fed said what the economy needs to cure the crisis and get employment moving again, is more debt. So the banks got the $4 trillion. And of this was so much money that interest rates were driven down to 1/10th of 1 percent on government bonds. And the Fed was lending money to the banks at 1/10th of 1 percent. So the idea was, the pretense was that now the Feds can lend mortgage money at hardly anything at all, and people can [bid] prices, house prices even higher. And that will save the banks from losing all the money on their liars' loans--the liars were the banks--on their junk mortgage loans. Or the Fed will lend the money to industry, and corporations will now say gee, we can borrow so cheaply that all we need to do is make maybe a three or a four percent profit, and we can hire enough labor to make people all fully employed again.
DESVARIEUX: All right, Michael. Hold on, hold on, one second. Now that the federal government though is talking about ending quantitative easing, also known as QE, who would be the winners and losers of this policy ending?
HUDSON: Well, in order to say who would be the winners and losers I have to say what happened when they did the easing. When they did it it drove interest rates down to, as I said, to a fraction of a percent, what did the banks do with the money? They didn't lend to industry to hire, they lent to industry to essentially arbitrage. They lent to corporate raiders to buy out industrial corporations, and they, most of all, they lent to companies to buy back their own stock.
So in the last, for this year alone, Standard & Poor's and other agencies guess that the winners are going to be the corporations that are going to spend over a trillion dollars in buying back their own stock. Because they can borrow so cheaply, why not buy back their own stock with interest rates so low.
So this trillion dollars is not going to be invested in new goods and services and production. It's not going to be invested in hiring labor. So who will be the winners? Well first of all, the pension funds have been complaining that interest rates are so low that they haven't been able to make enough money in their funds to be assured to pay the pensions that are falling due. The cities and states, California, New Jersey now, Illinois, are all saying wait a minute, we're so far behind in our pensions because we haven't been able to make the money, that we need higher interest rates in order to make enough money to pay the pensions. And the insurance companies have said, well, look, we need higher interest rates to solve the problem that we're making so little money securely that we promised to pay all these annuities, and we may go broke.
So in principle the whole idea is to help the pension funds, insurance companies and retirees make enough money to live on. That's the promise. But it's a false promise. It's just really the cover story. Because what's going to happen, as is so often the case, solving one problem creates yet new problems.
So look at who the losers will be if the Federal Reserve stops quantitative easing. Well for one thing, if they raise interest rates here--and when they say stopping quantitative easing, Janet Yellen really means let's raise interest rates and get them high again, as if that's going to help the economy. Well the first thing is if the United States raises interest rates that's going to push the dollar way up against the Euro, and most of all against third world and Asian countries. This means that countries that owe foreign debt, that's almost all denominated in dollars, especially to the International Monetary Fund or the World Bank, they're going to have to pay much more money in higher-priced dollars for their own currency. So this is going to aggravate debt deflation and defaults in third world countries.
Secondly, all of a sudden when they raise the interest rates, all this arbitrage that's been occurring to bid up the stock market, to bid up the bond market and to bid up real estate markets is going to be reversed. Because if interest rates rise, banks are not going to lend as much money to buy stocks and they're not going to make as much money to lend real estate.
So the economy's really painted itself into a corner. Nobody's able to win at this point, that's the problem with the economy. And in that sense you can say it's not that we really have a problem. We have a quandary. And a quandary is something where there isn't a solution. Mathematicians call this the optimum solution, or the optimum position. The optimum position is one where you can't make any move without making things worse. And that's the position the United States is in right now. This is as good as it gets, which is another way of saying it's all downhill from here.
DESVARIEUX: Michael, you don't see any way of us being able to get out of this sort of, debt deflation, this worst case scenario options here? Do we have any sort of options that allow us to kind of get out of this?
HUDSON: There is one way to get out of it, but it's, they're not willing to do it. The way to get out of debt deflation is you write down the bad debts. And this is what should have been done in 2008. As a matter of fact, when President Obama was running for election he promised to write down the bad mortgage debts to bring the mortgages in line with what people could pay. Well, right now you have a lot of interest on mortgages. You have a lot of principal coming through. You have a rise in defaults on mortgages because the debts are not written down.
And as soon as Obama was elected, Barney Frank went to him and said look, I've got the Republicans to agree and Paulson at Treasury's agreed we can write down the debts. And Obama said, I changed my mind, I'm not going to do what I promised. I'm appointing Tim Geithner as the bank lobbyist in charge of the Treasury Department, and he said we have to help the banks and forget the voters. And so the debts are not written down. If you don't write down the debts, the economy is going to have to use its money to pay down the mortgage debts, to pay all the corporate debts.
Let's look at these corporations that are buying their own stock, for instance. They say, well, look. If our stock is paying, maybe, 6 percent dividend, or 5 percent, or even 4 percent, let's borrow money from the bank and buy the stock. But now if the interest rate goes up, the stock market may fall easily by 20 percent. That's what people are so worried about. Whenever Janet Yellen talked about ending quantitative easing, the stock market takes a couple of hundred points' plunge.
So if the stock price goes down, say, 20 percent, then here are these companies that have borrowed to buy their own stock. And instead of making a two or three percent gain, the difference between the 1 percent they borrow at and the 4 percent, say, that the dividend rate is, all of a sudden they lose 20 percent and they're in trouble. They've taken a huge loss.
So all of this seeming gain, this sort of fictitious capital that's been created is going to be wiped out if you don't simply write down the debts. And because you, the government and the politicians, Congress, have all said we're assigning economic policy outside of the government, we're letting the Federal Reserve be the central planner, well, the Federal Reserve is loyal to its customers and its owners, the commercial banks. So basically Congress and the executive branch has said we're going to save the banks, not the economy. And saving the banks means you impose debt deflation on the economy, you shrink the economy. There's not going to be a revival in employment under these conditions. There's not going to be rising wages. And the capital gains that have been spurring the stock and bond markets, and the real estate recovery, are going to be reversed.