Liesman Asks Yellen: "Is The Fed Worried By The Market Going Up Triple Digits Every Day?"

CNBC's Steve Liesman: "Every day it seems the stock market goes up triple digits... is it now, or will it soon become a worry for the central bank that valuations are this high?"

Yellen's response appeared very similar to Bernanke's "contained" moment:

'"The stock market has gone up a great deal this year,'' and asset valuations are "elevated."

 

"We see ratios in the high end of historical ranges," but "Economists are not great at knowing what the right valuations are...we don't have a terrific track record."

 

"Low interest rates support higher valuations."

 

''The risks in the global economy look more balanced than they have in recent years.''

 

''There is nothing flashing red there or possibly even orange,'' on asset valuations...

So this is not even flashing orange?

And this is not flashing red?

And none of this worries you?

Then Yellen turned to Bitcoin:

"Bitcoin, at this time, plays a very small role in the payments system.

 

It is not a stable store of value and it doesn't constitute legal tender. It is a highly speculative asset."

 

"The Fed doesn't really play any regulatory role with respect with Bitcoin, other than ensuring banks are being prudent. "

Yellenb also said that creating a cryptocurrency "is not something the Federal Reserve is seriously considering at this stage.... There are limited benefits and a limited need for it.''

Finaly she summed up: "There's less to lose sleep about now than in a long time"

Comments

Goldenballs shankster Wed, 12/13/2017 - 16:06 Permalink

So the Fed reduces its balance sheet by selling debt/Assets (make your own choice) for its own off balance sheet dark currency, and the media makes out some investor somewhere is actually buying this rubbish.Utter boll*cks.Privatisation is theft from me and you.The nation gets the bills and the tax havens get the profits.Buy physical and bail out.

In reply to by shankster

insanelysane Wed, 12/13/2017 - 15:44 Permalink

Liesman?  I thought he crawled into some hole after the election?  He was never worried about soaring markets when the Dems were in office.  He figured that was how they would keep electing Dems.  We can see now that the market will continue to soar regardless of what happens including nuclear war.  The minute the music stops, we will be triggering circuit breakers for months as the market evaporates.

gcjohns1971 Wed, 12/13/2017 - 15:54 Permalink

They had to implement a command economy to implement a global economy.The problem is that markeys are about human needs, and command economies are about control.Whwn enough people's needs do not coincide with elitist desires then markets blow up.

rf80412 gcjohns1971 Wed, 12/13/2017 - 16:09 Permalink

Free markets are about profit first, last, and always.  If what people need and want is not profitable to produce, then it doesn't get produced.  If what is profitable to produce isn't what people need and want, then it gets subsidized.Does unmet demand constitute market failure?  Or is unmet demand held to be impossible?  Since in the end you still "voluntarily" bought X even though you wanted Y, or else you "voluntarily" kept your money and went home.

In reply to by gcjohns1971

moneybots Wed, 12/13/2017 - 15:57 Permalink

 "Low interest rates support higher valuations." So why did the Nasdaq fall 76% when Greenspan dropped the rate from 6.5 to 1%?So why did the S&P drop 57% when Bernanke dropped the rate from 5.5 to ZIRP?

moneybots Wed, 12/13/2017 - 16:00 Permalink

 ''There is nothing flashing red there or possibly even orange,'' on asset valuations... Yellen said she didn't see the 2008 crisis coming--------- UNTIL IT HIT.

SDShack Wed, 12/13/2017 - 16:36 Permalink

"...ensuring banks are being prudent."

LOL! I missed where Old Yeller said Glass-Steagall was being re-implemented. I can't wait until the term "unexpected" is unleashed by them. Tylers, get the Deer in Headlights cued up.