Bloomberg Writes: Yellen Signals Continued QE Undeterred by Bubble Risk

Janet Yellen indicated she’ll press on with the Federal Reserve’s unprecedented monetary stimulus until she sees a robust recovery, downplaying risks the policy is inflating asset bubbles.

“I don’t see evidence at this point, in major sectors of asset prices, misalignments,” she said yesterday during her confirmation hearing to be the next Fed chairman. “Although there is limited evidence of reach for yield, we don’t see a broad buildup in leverage, where the development of risks that I think at this stage poses a risk to financial stability.”

Yellen signaled her determination to use bond buying to strengthen the economy and drive down the nation’s 7.3 percent unemployment rate.

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Janet Yellen is either a lying idiot who doesn’t understand economics or she is just a lying idiot. Why? For a couple very simple reasons.

First, anyone with a keen understanding of today’s economic environment would run away from this job. Only a fool without an understanding of where we are in the economic cycle would take it. Let’s put it this way. Would you take a job as a CEO of the company that seems to be doing fine, but you know is massively cooking its books? You know the company is essentially insolvent and the truth will come out shortly. You also know that if you take this job you would be blamed for the upcoming collapse. Would you take that job? Of course you WOULDN’T. You don’t need that in your life. So, Janet Yellen either has an overinflated ego where she believes she can control and manipulate financial market OR she simply doesn’t understand today’s economic environment. Either way, its not a good start.

Second, she signaled further stimulus by pumping even more money into the economy if need be and stated “I don’t see evidence at this point, in major sectors of asset prices, misalignment”. Well, there is so many things wrong here that I don’t know where to begin. As I have said before, we are in the largest financial bubble the history has ever seen. Surely the FED’s see it, yet they continue to lie for the sake of stability. Yet, such stability can only exist until the markets have their first seizure. Thereafter, relative stability will translate into massive volatility.

The best thing about financial markets is that they teach all idiots a lesson. I was one of those idiots once, but now it’s Janel Yellen’s turn. I wish you luck Janet. The bear market of 2014-2017 (as per my timing work) will teach you a valuable lesson.

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Obama to Wall Street: This time be worried

Wall Street needs to be genuinely worried about what is going on in Washington, President Barack Obama told CNBC in a White House interview Wednesday.

While gridlock in D.C. is nothing new, “this time I think Wall Street should be concerned,” Obama said.

“When you have a situation in which a faction is willing to default on U.S. obligations, then we are in trouble,” Obama said

“I am exasperated with the idea that unless I say that 20 million people, ‘you can’t have health insurance, they will not reopen the government.’ That is irresponsible,” he said.

“It is important for [Wall Street] to recognize that this is going to have a profound impact on our economy and their bottom lines, their employees and their shareholders,” Obama said.

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By now it is clear that President Obama will not negotiate with the Republicans, nor should he. Whether you agree or disagree with the new healthcare law, it was passed, signed and confirmed by the supreme court. It’s called democracy.

Now, President Obama is basically freaking out about the stock market and the impact of the shutdown on the overall US Economy. Should he be and more importantly should you be?

As of right now my answer is NO. Here is why….

The existing shutdown is inconsequential. The debt ceiling is a much more important one and that one is coming up on Oct 17/22. Yet, one way or another, the US will not default.
As of right now the stock market is not even concerned about this issue.
There is just way too much drama. The politicians and the media love it.
When it is all said and done, there are very powerful financial interest in the US who control the politicians. If they want to maintain the US Economy and say enough, all Republican issues will disappear overnight.

In conclusion, as of right now this is an entertaining issue that I believe will resolve itself within a short period of time. The stock market thinks so and so do I.

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