"Signs Of Excesses Isolated" - In Search of Elephant In Room, Fed Governors Come Up Empty

Tyler Durden's picture

Submitted by Mike Shedlock via MishTalk.com,

Fed Governor Jerome Powell says “Signs of excesses are ‘isolated’. Asset Prices ‘not broadly unsustainable’“.


The Federal Reserve does not see “broadly unsustainable asset prices,” a senior U.S. central banker said Saturday, with financial excesses stemming from almost a decade of ultralow interest rates “isolated.”


In remarks as part of a panel discussion at the American Finance Association meeting, Fed Gov. Jerome Powell defended the central bank’s policy that has kept interest rates at historic lows since the financial crisis. The Fed pushed rates to zero in December 2008 and has only raised them only twice since, both in the past year.


The policy of low rates has helped the economy recover, and has helped strengthen the financial sector, he said. “By many measures the U.S. financial system is much stronger than before the crisis,” Powell said.


There are trade-offs, because low interest rates can have adverse impacts on financial markets in a number of ways, he said. “Low rates can lead to excessive leverage and broadly unsustainable asset prices — things that we watch carefully for and do not observe at this point.”

Missed Elephants

  1. The Greenspan Fed missed the dotcom bubble
  2. The Greenspan Fed and the Bernanke Fed missed the housing bubble
  3. The Bernanke Fed and the Yellen Fed missed the asset bubbles now in progress

The only way to not see this bubble is to be willfully blind to economic fundamentals for the sole benefit of banks and the wealthy, to the detriment of everyone else.

And then there's Citadel's Ken Griffin...

“We are now more levered in corporate America than ever before”

Which - is a fact!

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Yen Cross's picture

  I expect MOAR bloviations from non voting Fed. tards [transparent} morons in the near future.

Colonel Klink's picture

Don't forget shystering, there'll be plenty of that too.

xythras's picture
xythras (not verified) Colonel Klink Jan 9, 2017 3:16 AM

Those "assets" the jews have are only on paper. They are desperate for a showdown with Russia in order to make bank.

And someone over at the Pentagon is doing their bidding.


CuttingEdge's picture

The Fed couldn't find an elephant in the room if it was fucking them up the arse.

Paul Kersey's picture

In 1997, just a few short years before the dot.com crash, Fed Chairman Alan Greenspan said that "important pieces of information, while just suggestive at this point, could be read as indicating basic improvement in the longer-term efficiency of the economy."

In December 2004, the President of the New York Fed, Tim Geithner, issued a report bluntly declaring that “no bubble exists.” Mr. Greenspan predicted several times — incorrectly, it turned out — that housing declines would be local but almost certainly not nationwide.

In 2004, hen Janet Yellen was President of the San Francisco Fed, she said that closer supervision had "made our financial system far more resilient to shocks." In Phoenix that year, she reported "more positive signs in the economy."

She concluding that "we don't think widespread problems are likely" and that "industry conditions in many respects are stronger now than they've ever been."

two hoots's picture

Fed speakers:  Finding new words to say the same ol' thing.   Their act is getting long in the tooth.

SoDamnMad's picture

Production of M1 and M1A1 tanks totaled some 9,000 tanks at a cost of approximately $4.3 million per unit.[18] By 1999, costs for the tank were upwards of US$5 million a vehicle.[3]   

Dats some bucks for a gas hog that can be destroyed by a cheap anti-tank missile.   62 tons each   Not too many bridges in Europe can take that load and the waters in those rivers are pretty damn cold. 

Milton Keynes's picture

I remember when Greenspan said "There is no Housing Bubble, merely some froth"...


JFC, what a goon.

Aquarius's picture

Friend of Summers and Krugman, no doubt.

It's all downhill from here folks and since 2006 and well, well, before

US Dollar crashes - very soon. USA - US FedRes, You are Bankrupt of Mind, Body, Soul and Pocket.

Nobody believes you Americans any more.

Now Russian Gas peaks - Oh dear, its rather cold in Europe and those US backed ME Gulf Israeli Gas pipe lines can't get through Syria to Europe; too bad. has the Mini Ice Age already come?? Oh dear, what happened to the UN and Central Bank funded - for more global Taxation on the unwashed - Global Warming???? Huh?? Huh??? huh?

Now you are poisooning city water supplies - that's a nice Pentagon job, eh what? Too much attacking unsuspecting troops under a Flag of Truce - Your Truce: 

Americans: You have no Integrity - No Honour - No Courage - No Pride -  No Humility

... Oh yeh, and the Bonds" Whadda bout them, huh?

and all them Pension Ponzi Funds that have been ripped off over the years in return for Political donations? Huh. whadda bout them, huh??

And all that real investment going into Russia and China, huh, huh???

Clearly, the US is a crime scene and all players are just grifters posing as bankers, financiers, brokers, politicians, regulators, etc. Now the 'grifter wars' will break out in the USA, while the rest of the World gets on with serious stuff.

Trump's Wall will be used to keep you all in.

Doesn't matter what Clapper says as he is a Pathalogical Liar; lies to the public, Congress - anbody that will listem; it is the Expectation.

Nobody gives a shit!

Whenya done; turn out the lights and shut the goddamned door.

devolved morons,


proto-Human Losers,


Ho hum


Aquarius's picture

News has it that US Tanks by the hundreds are being landed in Europe so NATO and the US can subdue "agressive Russia" which more  likely means, based on the normal and typical US Intelligence (sic) Reports, and if one can believe McCain and his pals, - invade Russia.

OK. Napoleon and Hitler tried that around this time a few years ago, just, when the temperature was similar as it is today. -31F and right across Europe. Global Warming (sic).

I expect the Americans and their stupid dumb-assed servants in NATO to invade Russia: and a Ha Diddly Ha to them.  Let them all invade and all Putin has to do, as was done before, is pull back and let the Winter fight the war. Anything left, feed it to the dogs.

 There is a disease on the Face of the Dark and it is called STUPID. And, Stupid is as Stupid Does.

Let it be SO.

Ho hum

Offthebeach's picture

-31F isn't special in nortern half US.  Just another day.

SoDamnMad's picture

Some of you Brits sure have an ax to grind.  Met one asshole who lived in Belarus.  Oh well, I am sure the muslims wil treat you well. 

Offthebeach's picture

Lighten up Francis. Noting new under the sun. Besides, no matter what, the shit won't land on us.

Bunga Bunga's picture

but but but rates are zero, debt doesn't matter anymore.

DeeZ_nutZ's picture

with mnunchin working for the trumpon, they can now say whatevers they wants.

suck on the tweeter thread, murika!

Ban KKiller's picture

Mnuchin won't make it. Fucker can't l leave NYC without heavy protection as he knows he is dead man walking. Ok, Greenwich, maybe. He is huge lying scumbag.

ChinaWildMan's picture

Here's an elephant in the room that the whole world is missing... I wrote about it in another forum but here it is for you to think about.

Hmm... guess no one went to the link I provided: https://en.wikipedia.org/wiki/Military_payment_certificate

or this one: http://www.petester.com/html/m...

The lesson for those that did go there is this: America doesn't own the dollar (it's owned by the FED) and just like Military Payment Certificates used in a country like Vietnam the USD is being used to keep us (American Citizens) away from HONEST MONEY. When the FED decides that the war in America for it (the FED) is OVER it will no longer recognize the USD as a legitimate currency and the USD will become instantly WORTHLESS just like those Military Payment Certificates were at the END of the WAR.

Do you think for one second that the Military gave the Vietnamese holding MPC a chance to convert to something that was worth anything.


The only solution is to stay with a value pyramid that has stood the test of 5,000 or more years of history and it is this:


Nuff said.

Aquarius's picture

I was there in those last days and saw the US steal all the gold bars that they could lay there hands on and load them onto Air America's C-46 fleet being supervised and organized by CIA Spooks. And the planes were full and grossly overloaded with wounded US soldiers laying on the bars, and dripping blood - shit and urine as they took off.


Ho hum

Offthebeach's picture

You were at Woodstock too.

Aquarius's picture

No, I was not at Woodstock.


Just 4 the record.

evildimensions's picture

I see no elephant.

mosfet's picture

Fucking Fakenews Fed Fuckers, normalize rates back to 5.5% and see how sustainable asset prices are!


AlbertthePudding's picture

The Fed sees what it wants to see and hears what it wants to hear. Got me!

Sandmann's picture

Most Students in UK are Female

29.5 hours's picture

Vocal insistence on sustainability of present conditions is probably a good counter-indicator.

Last of the Middle Class's picture

The more money the Fed dumps buying bad debt, the crazier the Liberal high percentage stock owners get knowing the end is near for their beloved river of fiat.

bookofenoch's picture

Brace for impact

A. Boaty's picture

When the chickens come home to roost, the elephant in the room and the 800 lb. gorilla will fall into a shark infested snake pit.

Kat Daddy's picture

They can say and do what ever they like, with every wiggle the noose gets tighter, it's a feature of the trap.  The goal is national bankruptcy followed by asset stripping and sale of US assets to the NWO elites and austerity and marshall law for the masses.