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Janet Yellen's "Junk Bonds Are Contained" Moment
From Janet Yellen's February 27, 2014 Testimony before the US Senate Committee:
- Low interest rates can give rise to behavior that poses threats to financial stability and therefore we need to be looking at that very carefully and we are doing so in a very thorough way, I believe. We're looking at credit growth to see whether or not that has potential worrisome trends.
- We're looking particularly to our stress tests at financial institutions. In a low-interest rate environment we have to worry about whether or not they're appropriately dealing with interest rate risk.
- We are watching very carefully for the development of any such excesses. We are very focused on not allowing such a thing to happen again.
- While there might be a few areas where I have concerns, such as deteriorating underwriting standards in leveraged lending, farmland prices, a few things, I don't see those excesses having developed at this point.
And then, from Janet Yellen's news conference after the March 18, 2015 FOMC meeting:
- In some corporate debt markets, we do see evidence of unusually low spreads.
- More broadly, we do try to assess potential threats to financial stability. And in addition to looking at asset valuations, we also look at measures of credit growth, of the extent of leverage being used in the economy and in the financial sector, and the extent of maturity transformation.
- And taking into account a broad range of metrics that bear on financial stability, our overall assessment at this point is that threats are moderate.
How about now?
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We didn't see it coming...
-----> want Yellen to hike up her rate skirt
-----> want Yellen to keep her skirt where it is & continue to tease
The Fed can never admit they are able to predict recessions, for to do so would then set the standard to do so in the future. Since their policies directly contribute to (if not cause) each recession, to predict a recession would simply point a finger towards their own destructive policies.
This is the Big Lie that must be maintained, that the Fed is a guardian of the economy and not the cause and effect of the inevitable, and increasingly destructive, recessions/depressions.
<---She didn't contain that!
'<---She can't contain that!
What difference does it make?!
Guessing out loud that the Fed is a big enough container
It isn't
I'm begging you, please change that picture of Yellen that sits next to every article about her.
Jack Lew's tanks in the streets moment coming.
Bail out time again.....
Jack Lew - the invisible man.
DavidC
Well, to be fair, nobody could have seen this coming.
Not a one.
Eerything is perfect, no worries.. Time to panic..
Yea, and what did Bernake say about housing in 07'! HAHAHAHAHAHA
Well if Jack Yellen sez it...it must be true! We will need MOAR data though!
"noone could have seen this coming"...
Remember that line when you see the fucking guillotine.
Make sure her head is turned up and her eyes are propped open as the blade is released.
It's pure human fraility that we all listen to this kind of shit.
You get more sense out of a Disney cartoon.
Standing athwart history screaming 'BULLSHIT!. It's all crumbling, but another coat of paint will fix everything....
Hey, what's to worry?! A few $Trillion Treasuries? The Fed can buy those in a minute!!
We wouldn't be having these problems if those pesky "markets" would stop trying to find their natural levels.
Yeah, it's all good. What's a little 25bp gonna do? Go for it, Janet.
Once you hear buffett is buying junk bonds you know the fed is ready to start buying them.
Unless he's buying particular situations where he has inside information.
I meant a lot, like when he went all in on MBS.
I got it -- was just taking the opportunity for another dig at Uncle Warren.
THIS BOAT IS UNSINCKABLE!!! Now let's have a brandy at the bar while those morons are pedling away in those almost empty lifeboats....
<Bullish
<Bullshit
Bernanke's subprime mortagages are contained statement in 2008.
LOL, Until it all blows up.
Comical.
I can see Yellen kneeling besides her bed
Please Oh please Sky Jesus ( pick your flavor ) just give them a 900 credit score one last time so they can borrow my way out of this, I want a Legacy not a Fallacy!
Amen, oh and Sky Jesus should I go long Gold or short? thank you you're Humble servant
Yellen.
With just minor punching up, you could have the Comment of the Year Trophy for Superior Participation.
Just the opposite, sadly, Yellen prays to satan, not Jesus. She's satanic.
", our overall assessment at this point is that threats are moderate. "
Do ANY of these assholes understand the meaning of the word 'moderate'?
Hoocoodanode?!?!
She needs to be contained - in a fuckin' straight jacket........................................
our overall assessment at this point is that threats are moderate.
Would that be a Yellow or an Orange threat level?
Threat Level Brown.
The Undershorts Stain Chart says Brown.
"contained" Where have I heard that before?
A "Depends" commercial.
What else would you expect that Muppet to say. The next "implosion" will be met with even moar QE moar consolidation and moar greed, all to "save" main street. Its all bullshit and everyone knows it. All that they've done with every crisis is to print moar debt. At some point we'll have 3 banks 3 insurers 4 major media outlets and a government going into debt at a clip of 2 trillion a year. If anyone thinks part time no benefit jobs are going to carry 80 million boomers they're completely devoid of any common sense.
The idea that the "stock market" can be used as a policy tool to make things appear well is crazy. The real economy blew up years ago. What happens when all the good not great but good paying jobs disappear? What happens when the boomers can't unload their houses to Gen-x?
Sooner or latter there's going to be a reset, I just hope its not through a massive world war.
"What happens when all the good not great but good paying jobs disappear? What happens when the boomers can't unload their houses to Gen-x? "
Where have you been for the last 8 years?
The Good paying jobs are gone. The middle class has lost almost a third of it's wealth and is now dissolving/sinking into the underclass.
The only people buying homes for the last 8 years are foreign criminals and hedge funds. Millions of people aren't paying their underwater mortgages because they can't and the banks can't forclose or they go bust.
The system is fucked.
The population is debt daturated, overtaxed, financially and legally oppressed, functionally leaderless...the jobs markets outsourced and/or over-run with illegals and 3rd world economic migrants without any allegiance to the existing culture or customs...
Its "contained" until it expldoes and takes down the whole casino ...
I remember a past Fed Chairman who said sub-prime was contained!!! https://youtu.be/W6LbZhWeysk
So, Yellen has become Mrs. Magoo. "I can't see . . . . ."
Greenspan left his special Magoo frosted glasses in the desk drawer...
You take the job, you wear the glasses: you see NOTHING.
Actually, they make everything, and I mean EVERYTHING, seem to go up and to the right.
Yet Magoo continued to drive.
Janet Yellen quotes:
"We're looking at credit growth…";
"We're looking particularly to our stress tests…";
"We are watching very carefully for…";
"While there might be a few areas where I have concerns…";
"…we do see evidence of unusually low spreads…";
"…we do try to assess potential threats to financial stability…";
"…our overall assessment at this point is that threats are moderate."
We are paid to look but nobody says that we have to actually see anything. In fact, our compensation packages are predicated on not seeing anything to worry about.
Who writes this shit anyway?
Curtains in the theater are burning in the background...
"Remain calm, everything is under control. No need to use the exits yet".
Ole Yeller will contain the problem for sure by raising the rates.....that ought to fix it for good!
"And finally Madam...a wafer thin mint?"
When the Fed chair says its contained. She means its contained to the 99.9%.
Whats wrong with Penis Bonds said the Chairwoman..