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Yellen leans dovish in prepared confirmation hearing remarks

Comments (33)
  • Leans dovish? She is full blown socialist. She will print money forever.
    13 Nov 2013, 04:56 PM Reply Like
  • I think the money supply in Venezuela has increased by about 75% this year. It has led to prices doubling in a week, then a wholesale looting of stores that dared to double their prices. Chaos.
    13 Nov 2013, 05:05 PM Reply Like
  • Although she is better than a corrupt guy who wants to feed himself and his friends with freshly minted new money like he did in the market collapse, Yellen needs to be defeated too. HER monetary leanings is 1 hair shy from socialism where the politburo central bank sets and decides everything. Her faith in capitalism and American ingenuity is replaced with a belief Americans need to be managed and saved by the socialist elites who know what's best for them. In this case its water down the value of money and refuse to let you earn a decent return until everyone realizes you must spend it or lose it. When this happens the only one left with power is the ones making it, that is the Federal Reserve. All hail the new emperor.

     

    In summation, the Yellen like central bank liberal thinkers want can be summed up by one person who previously subscribed to this "economic theory" to cede total control of money supply to an autonomous central bank when he said, "As long as we hold the power to coin money, it matters not who makes the laws." QE and the ambitions of the Federal Reserve to grant them powers to expand money supply without the approval of the people would be considered both communist/socialist and treasonous in the past.
    14 Nov 2013, 02:20 AM Reply Like
  • Moon,
    Excerpt from Yellen's leaked speach:
    "We have made progress in promoting a strong and stable financial system, but here, too, important work lies ahead. I am committed to using the Fed's supervisory and regulatory role to reduce the threat of another financial crisis. I believe that capital and liquidity rules and strong supervision are important tools for addressing the problem of financial institutions that are regarded as "too big to fail." In writing new rules, however, the Fed should continue to limit the regulatory burden for community banks and smaller institutions, taking into account their distinct role and contributions. Overall, the Federal Reserve has sharpened its focus on financial stability and is taking that goal into consideration when carrying out its responsibilities for monetary policy. I support these developments and pledge, if confirmed, to continue them."

     

    That is in strong contrast with:
    http://bloom.bg/1cXpash-ewDl2sFUQdmEyKnp~4hbz...

     

    I am afraid Huszak is right.
    14 Nov 2013, 06:16 AM Reply Like
  • Saying Yellen "leans dovish" is like saying Miley Cyrus "shows signs of immaturity".
    13 Nov 2013, 05:06 PM Reply Like
  • Saying Yellen "leans dovish" is like saying Miley Cyrus "shows signs of immaturity"

     

    I'll be quoting you on that! I agree wholeheartedly.
    13 Nov 2013, 05:21 PM Reply Like
  • What is Yellen twerkin with?
    13 Nov 2013, 07:43 PM Reply Like
  • Your limp extremity.
    14 Nov 2013, 12:53 AM Reply Like
  • Lets just see what the data is we get tomorrow and Friday. It still just comes down to the data. Fed speak can only carry so much.
    13 Nov 2013, 05:29 PM Reply Like
  • when yonkers like in this comment thread complain about doves and socialists when inflation is running 1.2% for 3 years now, and Japan just getting out of a 20 year deflationary spiral after 1 year of Keynesian macroeconomic twin fiscal and monetary stimulus, it just shows how dumb memes multiply simply because they are simple to repeat as one-liners however unfounded by economic history and facts. Europe just got another unexpected rate cut because the ECB is afraid the Euro will quicksand into Japan-like deflation. DEFLATION.

     

    My household budget has stayed flat these past few years. Gas, milk, foods that I get from Costco wholesale have barely budged upward. The S&P has yielded 20% gains annually each of the last 4 years. And yet blind to facts and susceptible to male gossip via Fox and CNBC christened with a fancy sounding name, so called 'memes', disgruntled impotent men keep ranting inflation.

     

    Keep ranting the same predictable sexist, machismo voodoo economic gossip while economic realities fly by you.
    13 Nov 2013, 05:33 PM Reply Like
  • Milk prices are controlled by the government. The grocery store prices are up something like 8%. Unlessyou don't notice package sizes are smaller and smaller.
    13 Nov 2013, 06:50 PM Reply Like
  • Thank you... I think this is the first post I've seen in months that actually some sensibility. It's quite amazing that everyone keeps pissing and moaning about QE. We are not experiencing any kind of out-of-control inflation. As soon as that starts to creep up, all the FED has to do is dial back the QE. I bet the complainers would be complaining all the same if the FED didn't deliver consistent QE. We'd be in a deflationary spiral towards a double dip recession and everyone would be pointing fingers (again).

     

    I also find it hilarious that the complainers are complaining about the stock market appreciating on a forum for investors. How's that for irony?

     

    Once the economy starts to move at a quicker pace, the FED can hand off the QE for true economic growth and we won't have an economic collapse like so many are promising.

     

    I don't understand why this country (and culture) hasn't learn to shut off Fox, CNBC, and other media outlets. Even NPR is getting kind of old talking about all of the economic woes.
    13 Nov 2013, 07:00 PM Reply Like
  • awake in washington: I agree that consumer prices broadly have been pretty contained. Why? because all the Fed machinations have put Billions of dollars in the pockets of Billionaires. Now, a Billionaire who gets richer by a few Billion does not run out and buy more stuff at Costco. Nope - it has no effect whatsoever on prices of things sold at Costco.
    13 Nov 2013, 11:58 PM Reply Like
  • sarichter: I agree that watching too much TV makes one want to tear ones hair out. This is a great country - lots of land, fresh water, clean air and a few smart people too!
    However, ( heh) , I gotta point something out: Dont believe for a moment that the Fed has such perfect control that they can just dial in the whatever inflation they want. Events have generally overwhelmed them. Have pity, because these are good folks, much like the astrologers of old who were trusted advisors to kings. kings liked their astrologers, because they could justify absolutely anything the king wanted to do - based on ..... astrology. During years of good harvests, folks were mighty convinced that the king was just and the astrologers were brilliant.
    14 Nov 2013, 12:06 AM Reply Like
  • Oh - also. I would'nt get too happy based on the stock market going up non-stop for several months. The market can easily give up all the gains of several months/years - in a flash.
    Do you know that at the bottom in 2009, the stock market ( in real, inflation adjusted terms) was back to where it was in 1968?
    14 Nov 2013, 12:18 AM Reply Like
  • We live in a time of great prosperity, amazing technology, effortless wealth. The folks who effortlessly enjoy all this - have the Fed to thank. These folks would'nt know what a "costco" was. They live in a different universe. their main dreams are twofold - immortality and colonizing Mars - so they can leave the rest of us riff-raff behind for good.
    The Fed seems to believe their job is to make their dreams come true.
    14 Nov 2013, 12:23 AM Reply Like
  • and rather retort with more of the same, why don't somebody go google some cpi and show me where said inflation is. and if one doesn't trust the liberal economist conspirators, how about showing receipts before and after of things that have succumbed to inflation.

     

    I'd like to see actual evidence other than the usual predictable rehashed inflation bogeyman that keep getting regurged year after year.
    13 Nov 2013, 05:36 PM Reply Like
  • I'd like to see actual evidence other than the usual predictable rehashed "no inflation" that folks like you keep regurgitating year after year. Sure, show those Costco receipts. I shop and gas up there as well.
    13 Nov 2013, 06:12 PM Reply Like
  • Awake - perhaps you could inform all on the potentially unintended consequences of QE?

     

    Yellen will continue the current game plan into what is forseeable perpetuity. The Fed does not know what to do at the Zero Bound. They are in uncharted territory. Things behave differently than they do when there are normal interest rates. So, all we can do is watch the banks and stock market benefit. Meantime other companies like insurance companies will likely suffer and surely the bottom 1/2 to 2/3 of the wage earners, with little or no financial assets, will also suffer from wage stagnation, but benefit from low inflation.
    13 Nov 2013, 06:20 PM Reply Like
  • Amen... inflation is barely existent. I wonder what rock most people live under to allege all economists are liberal and coming up with fake statistics because there is a Democrat in the White House. There are plenty of conservatives working in branches of government. Oh vey!

     

    Doesn't help that the media spins everything out of control and most people in this country, apparently, can't think for themselves!
    13 Nov 2013, 07:05 PM Reply Like
  • I think that inflation worriers should buy Gold or TIPS or whatever inflation play they think is best and report back how they did in a decade. Its one thing to complain about policy, but its another to put your money where your mouth is.
    13 Nov 2013, 08:12 PM Reply Like
  • The simple fact is that the Fed isn't going to stop stimulating until it sees the whites of Inflation's eyes. I'm positioning myself accordingly.
    13 Nov 2013, 06:38 PM Reply Like
  • La la la la la, everyone dance, all if fine in Willoughby. Prices are not rising. Ask any housewife if prices are stagnant, rising or falling. Do NOT ask a person with an agenda.
    I have saved receipts for more than 25 years, and suspect things have risen in price. Not sure though, lemme ask someone preparing for his or her next election. They wouldn't lie. And we impeached Nixon for bugging two buildings. The new guy has bugged the entire nation. But that's okay. Kind of like the new math.. Sound great, just doesn't work any more than a few medical websites I could mention.
    Remember, you are oppressed when you are afraid to mention your oppressor.
    Capt. Brian
    The Lost Navigator
    13 Nov 2013, 06:55 PM Reply Like
  • Obama doesn't produce inflation stats. Government stats are almost exactly the same as independent estimates. Either you need a better class of propaganda or you could try to find objective sources instead. It's easy to find out what's true if that matters to you, it's only hard if your agenda gets in the way.

     

    Do I believe we're in a deflationary downdraft? Yes, that's not even in question. Do I believe the Fed can't hit its inflation target? Of course.

     

    Why do I believe it? For this reason: The economy is behaving like it's in a deflationary downdraft, not like it's subject to "secret" inflation.

     

    Someone once said Newt Gingrich was a dumb person's idea of what a smart person is like. Hmmm....maybe, but I'll tell you the secret inflation theory looks a little like that, a supposedly smart idea with lots of dumbth built in. Are we not supposed to notice that in addition to higher prices we are also missing all the other signs that inflationary stimulus would exhibit?

     

    Real inflation would boost employment and consumer spending, wingnut inflation OTOH would not. Got that, Sherlock? Why isn't the Inflation Dog barking?
    14 Nov 2013, 12:11 AM Reply Like
  • Goodnight Chet.
    13 Nov 2013, 07:03 PM Reply Like
  • back to the main event - This "leak" of the Yellen testimony ( and I read it fully) - does not contain a single thing that surprised me. She is after all not writing a policy paper - no , she is trying to market her candidacy to a bunch of high school dropouts ( at least in terms of intellectual capacity!).
    So - we have to be very suspicious of the all the media excitement and markets surging etc. its probably just a great setup for a bunch of power-players to get out at very high prices. Would not be surprised to see a pop and drop tomorrow.
    13 Nov 2013, 07:05 PM Reply Like
  • After all - put yourself in the shoes of a large hedge fund. You know that everyone in the industry has these fast computers and fiber optic links - and believe that they can get out of their positions in milliseconds. So - no need to guess the future - just play the trend to the very last drop- then get out - in milliseconds.
    But - you are older and wiser than most of these bozos. You have seen this movie before ( remember the 1987 program trading/portfolio insurance game - and the 30% single day collapse?). It can happen again - only it wont take a full trading day - milliseconds! So - you pull all the levers, call up the captive "media" to make sure they stay on message - no worries, Yellen is a dove! Then as the market floats up to more and more ridiculous levels - you sell your positions. of course , everyone is watching everyone else - like hawks - so sell first and sell early. Lock in your 20% gains for the year - on your typical $10 Billion hedge fund - that comes to performance fees of.... $ 200 million. Not too shabby. And live to play next year. Take the winter off - in the Swiss Alps.
    13 Nov 2013, 07:14 PM Reply Like
  • oops - apologies ... that should be performance fees of $400 million ( for your typical 2.20 fund) - hehe , almost off by $200 million - a nice Chagall painting!
    13 Nov 2013, 07:18 PM Reply Like
  • soooooo true RS055 and sarichter
    13 Nov 2013, 08:46 PM Reply Like
  • Every society has a 'priestly" class - shamans, astrologers, whirling-dervishes etc. They have complex, arcane theories and practices - and are quite mysterious to normal folks.
    Kings always had these in their employ. Very useful to justify absolutely anything the king wanted to do. invade a neigboring country? - no problem, any astrologer worth his salt knows whats needed and after doing his whirling, mathematical routine wil produce what the king needs. get rid of the queen and take a new mistress? Again - no sweat - spin those whels etc and pronounce that the gods have willed it so.
    We have the Fed.
    14 Nov 2013, 12:33 AM Reply Like
  • It can be quite a profitable life as a whirling dervish. in today's world it entails getting a PhD in economics from a top college.
    regular, rational folks can drive themselves into a frenzy trying to figure out the astrological meanings and all the whirling. relax , its all BS - watch what the king is up to.
    14 Nov 2013, 12:38 AM Reply Like
  • A Boeing 747, partially filled, with 400 of the wealthiest folks amongst us - represents more wealth than the bottom 200million Americans.
    These aviators - truly live in a gilded age. the technology, the freedom, the only limit is one's imagination. They rarely come in contac with the rest of the pop.Why? But many of them are quite good at afecting a "regular guy" pose on TV - baseball cap, with hotdog in hand etc. Because some of them just enjoy being on TV . But the real top dogs have bigger fish to fry. They have dreams of immortality with all the latest advances in genomics etc. Some dream of establishing a kingdom on Mars - far far away from the earthlings.
    The Fed exists to make their dreams come true. because these are worthwhile, bold dreams. And the whirling-dervishes of eccles house get a vicarious thrill from supporting the Gods amongst us.
    Ya'll Ok wid dat?
    14 Nov 2013, 12:50 AM Reply Like
  • Oh, and these "top 400" have a lot more in common with elites from other countries than with the "population at large' . national boundaries etc are soooo boring. necessary I suppose, keeps the pops in line.
    So they meet - in places like Davos etc. And invite the whirling-dervishes - just to be nice. Then they might even pretend to listen attentively to them; make sure they get a nice room at the hotel, and invitations to the cocktail parties. And make sure that media interviews them - they seem to like that. Gotta treat the critters nice - they do yeoman's work for pocket change ( the fed heads get paid what - couple hundred grand?).
    14 Nov 2013, 01:07 AM Reply Like
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