janet yellen arguing for more fed easing, HAHAHAHAH

Discussion in 'Wall St. News' started by S2007S, Jun 7, 2012.

  1. Just print up your own money exclusively for your friends/family/community.
    "Give me control of a nation's money supply, and I care not who makes its laws." --Rothschild
     
    #11     Jun 8, 2012
  2. AK100

    AK100

    S2007S

    It doesn't really matter who's in charge these days, there would be no difference if a monkey was calling the shots.

    Would Greece be in a different position now, if 5 years ago they appointed a monkey as President?

    Would Europe be in the mess right now if monkey's had been setting policy over the last 5 years?

    Look at Hollande in France, one of his first moves was to LOWER the retirement age of some state workers to 60 (from 62).

    Then we get Yellon wanting more QE. When that comes you just know there's more after that.
     
    #12     Jun 8, 2012
  3. You are talking about people who do not believe in creative destruction and markets clearing. However, since they are political actors, this is understandable - arguing in favour of a recession, job losses, and bankruptcies tends not to go down too well.

    What is interesting is that she sees short-term economic weakness as something that both can, and should be avoided. The idea that economic weakness might be a necessary and beneficial process in order to push people to reallocate capital from shitty enterprises to good ones seems to be something she doesn't even contemplate.

    The goal of economic action is not to avoid temporary economic weakness, it is to allocate resources as efficiently as possible. Losses, bankruptcy, and destruction are essential signals from the market to reallocate radically.

    The original role postulated for central banks was to avoid liquidity panics i.e. where the market gets far more negative (for a short while) than the reality justifies. I.e. people having bank runs because of pure fear, rather than because the bank in question is actually balance-sheet insolvent. This seems like a legitimate policy, it's like buying near the lows of a market capitulation, basically. But somewhere along the line, central banking theory expanded from staving off banking panics by providing temporary liquidity, to trying to stave off any kind of economic contraction at all by debasing the currency.
     
    #13     Jun 8, 2012
  4. piezoe

    piezoe

    I like your thinking on this. However I don't think it is "temporary economic weakness" she is concerned about, rather I think it is this:

    "There are a number of significant downside risks to the economic outlook, and hence it may well be appropriate to insure against adverse shocks that could push the economy into territory where a self-reinforcing downward spiral of economic weakness would be difficult to arrest," [italics mine]

    I am not wanting to substitute my own judgment for that of the experts in these matters, and consequently I accept that she may be right. But it does seem that we need more than Fed action alone. Perhaps it is time to bring the WPA back and put people to work doing something useful.
     
    #14     Jun 8, 2012
  5. plyka

    plyka

    The problem with the people who do understand economics like the Austrian types, is that they are too extreme in their views. For instance you say that over the last 20/30years the economy only grows due to asset bubbles, but that is not correct. Printing money doesn't grow the economy. Production, innovation and invention along with resources grow the economy. And this only happens to the extent of the economy being free market capitalist. So you're right that there have been asset bubbles and that the economy is not in good shape due to the gov and fed. However the Usa is still semi free market and whenever you have capitalism you have genuine growth relative to the extent of freedom. So the Usa economy has grown over the past 30 years it has actually done well for the most part. However this growth is in spite of the fed and gov not because of them. Without them in the way everyone would be far richer than they are, except the leeches.
     
    #15     Jun 8, 2012
  6. FED is totally clueless and effectively supporting the lack of fiscal discipline required from Washington to save this country from bankruptcy and financial ruin.

    I don't remember the number but basically 90% of all mortgages are being funneled through FNM, FMCC, FHLM etc and ending up with the FED. No wonder they have trillions on their books now.

    Remember quantitative easing (QE) sounds like a great thing but is actually nothing more than out right money printing, but we can't tell the sheeple that or they may complain that we are doing what the Wiemar Republic did and Zimbabwe are doing.

    The other issue is that operation twist is now creating a new problem that is even more severe for the economy and anyone with a pension or retired. The FED have artificially pushed bond yields down so low and stated they plan to keep rates down indefinitely that pension funds are now having to recalculate their obligations based on long-term low bond rates. Updated actuary tables for pension funds are requiring companies to now put substantially more money aside to fully fund their pension obligations.

    The bottom line is that savers, retired folks who are dependent on fixed income returns and company pension funds are all going to suffer. You can expect another pull back in consumer and company spending.....I'm seeing it in my company now.

    On another note the local paper here has weekly home sales with buyer, seller and amounts listed. The last two weeks the mortgagee sales are now up to 1 in 6 maybe from 1 on 12. Looks like the paperwork backlog is being cleared out.

    Isn't there an old Chinese proverb that "may you live in interesting times" yeah right!
     
    #16     Jun 9, 2012
  7. Good post. Very few people have paid one iota of attention to the major repurcussions of ZIRP. The propoganda machine would have us believe that artificially holding interest rates low is something super-duper for the economy at large. Per usual, one person's gain is another's loss...
     
    #17     Jun 9, 2012
  8. What's truly pathetic is the fact that you have posted over 13,000 times on this site, and don't even trade for a living.
    You've posted one PERMA-BEAR piece of drivel after another all the way up from SPX 850 three years ago. You are a total waste of bandwidth.
     
    #18     Jun 9, 2012
  9. Congratulations - you have just made the Austrians Case....
     
    #19     Jun 9, 2012
  10. Troll.
     
    #20     Jun 10, 2012