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Yellen, the Keynesian Democrat now running the FED has decided that financial bubbles in the market have nothing to do with the FED!

She has now militantly asserted that bubbles are entirely an irrational impulse in the private market and that the price of money and debt has absolutely nothing to do with financial stability.

BWAWAWAWAWAWAWAWAWAWA

http://davidstockmanscontracorner.com/t ... Day+Friday

If she's nuts..keep a close eye and ear on the NUTTY lady!

But you fibbed, Steve..you said the Fed would never taper..and they have been tapering and tapering..and the stock market hasn't flinched.

GFB wrote:But you fibbed, Steve..you said the Fed would never taper..and they have been tapering and tapering..and the stock market hasn't flinched.

No, it was a fake out. They arranged for the European Central Bank to take up the slack. As the FED tapered they expanded the money supply.

GFB wrote:But you fibbed, Steve..you said the Fed would never taper..and they have been tapering and tapering..and the stock market hasn't flinched.

No, it was a fake out. They arranged for the European Central Bank to take up the slack. As the FED tapered they expanded the money supply.

Man, they really DO control everything..the fake WORKED.

You'd better be paying attention to her every word!

GFB wrote:Man, they really DO control everything..the fake WORKED.

You'd better be paying attention to her every word!

I watch what she does, not what she says.
Yellen's statement makes about as much sence as if the White House's chief scientific advisor had announced that the world was actually flat.

Good article posted on zerohedge. Can Yellen really be that stupid? Either that or she is just a fool and should be laughed out of the Eccles building.

http://www.zerohedge.com/news/2014-07-0 ... not-market

planosteve wrote:Good article posted on zerohedge. Can Yellen really be that stupid? Either that or she is just a fool and should be laughed out of the Eccles building.

http://www.zerohedge.com/news/2014-07-0 ... not-market

So, if you believe like this article says, that all financial bubbles are caused by the Fed..what caused all of the bubbles throughout history (some go back several centuries)..before there were central banks or the Federal Reserve?

From the article:


"she sees bubbles as “market” events in which the central bank’s role is primarily shock absorption. In other words, idiot investors wholly of their own accord create bubbles and it’s the job of the munificent and enlightened Federal Reserve to help ensure that such “market” madness is “contained” without further economic destruction."


I don't know about "munificent" or "enlightened"..but yes..idiot investors wholly of their own accord create bubbles"..pretty much true.

The writer and you need to read this book.."Extraordinary Popular Delusions and the Madness of Crowds." ...first published in 1841..no Fed back THEN!


..or another.. "Devil Take the Hindmost."

GFB wrote:The writer and you need to read this book.."Extraordinary Popular Delusions and the Madness of Crowds." ...first published in 1841..no Fed back THEN!


..or another.. "Devil Take the Hindmost."

I probably read it in High School. But, the difference is now with fiat money and centralized banking you get much worse bubbles like the dot com and the real estate bubbles once Glass-Stegall was repealed.

planosteve wrote:

GFB wrote:The writer and you need to read this book.."Extraordinary Popular Delusions and the Madness of Crowds." ...first published in 1841..no Fed back THEN!


..or another.. "Devil Take the Hindmost."

I probably read it in High School. But, the difference is now with fiat money and centralized banking you get much worse bubbles like the dot com and the real estate bubbles once Glass-Stegall was repealed.

You definitely did not read either in High School.

..and the dot com and real estate bubbles were non events compared with the Railroad and Tulip Manias.

In Holland in the 1500s, people were selling their homes to buy one highly valued tulip bulb.

Within a few years, they were all rotting in the streets.

But yes, both the dot com and real estate "bubbles" were both caused by people being idiots.

GFB wrote:But yes, both the dot com and real estate "bubbles" were both caused by people being idiots.

Obviously, Yellen's not the only nut here.

planosteve wrote:

GFB wrote:But yes, both the dot com and real estate "bubbles" were both caused by people being idiots.

Obviously, Yellen's not the only nut here.

So, what did the Fed do to cause the dot com bubble?

GFB wrote:

planosteve wrote:

GFB wrote:But yes, both the dot com and real estate "bubbles" were both caused by people being idiots.

Obviously, Yellen's not the only nut here.

So, what did the Fed do to cause the dot com bubble?

The same thing they did to cause the wild speculation of the Roaring Twenties and the result which was the great depression.
Once Glass-Steagall was repealed in 1999, it was Katy bar the door on stock specuation again!

="planosteve"

The same thing they did to cause the wild speculation of the Roaring Twenties and the result which was the great depression.

What was THAT?

planosteve wrote:Once Glass-Steagall was repealed in 1999, it was Katy bar the door on stock specuation again!

I think you might be confusing Glass Steagal with the elimination of the "uptick" rule.