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.
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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