Cory's Insights – Thu 8 May, 2014

6 dubious Yellenisms from the Fed chair’s testimony

This article from MarketWatch breaking down some of the main themes of Yellen’s testimony to the Joint Economic Committee yesterday. The Committee brought up some of the concerns we have discuss on a regular basis, being the continuing wealth gap, the Fed’s inflation goal, extremely low labor force participation, and asset bubbles.

Click here to read the breakdown of her testimony.


Comments:
  1. On May 8, 2014 at 7:49 am,
    Mark says:

    The Fed is like an occupying army telling the occupied people that they are there to help them all the while slowly killing the country via the issuance of debt to both the occupied government and their citizens (who by the way are also collateral for the national debt) a debt that comes with an interest rate and that mathematically can never be repaid just rolled over indefinitely…..absolutely brilliant!

    • On May 8, 2014 at 7:58 am,
      J........the Long.............ootb says:

      great statement………..Mark………..

      • On May 8, 2014 at 8:30 am,
        Big Al says:

        As you can see I agree with you.

        • On May 8, 2014 at 8:33 am,
          J........the Long.............ootb says:

          LIKE minds………think alike………………………..uncle wally 1988
          besides, we were born on the same day, what else, could be expected.

          • On May 8, 2014 at 9:13 am,
            Irwin says:

            birds of a feather
            collide in nasty weather
            birds without feather
            taste better
            ~signed: no wisdom here, esq.
            http://4.bp.blogspot.com/-BjQ8FLeOiaY/T17zCjXaNFI/AAAAAAAAAdg/t0AtqrxZ85M/s320/IMG_4149.JPG

          • On May 8, 2014 at 9:23 am,
            J........the Long.............ootb says:

            Eagles and OWLS………..FLY SOLO………………

          • On May 8, 2014 at 9:40 am,
            Big Al says:

            December 1st?

          • On May 8, 2014 at 9:42 am,
            J........the Long.............ootb says:

            YES BIG OWL…………….

          • On May 8, 2014 at 9:57 am,
            Marc, San Diego says:

            Good, another “Mark” that has his crap together – if I do say so myself!…:0….HA!

    • On May 8, 2014 at 8:16 am,
      Big Al says:

      That, Mark, is a very interesting point.

      Have a great Thursday, by the way,

      Big Al

    • On May 8, 2014 at 8:55 am,
      Eric says:

      Well said.
      Evaluation of the Fed policies today is very much like evaluation of policies which gave rise to the housing bubble. At the height of the bubble, people were easily fooled into believing that the policies were working.

      They failed to consider what the downstream consequences of the policies would be. The same mistake is being made today. The problem is that we have since climbed up to an even higher cliff.

      This time, the crisis will be in the sovereign debt itself. The bubble has worked itself up to the top of the food chain. When this one pops, there is no easy rescue.

      • On May 8, 2014 at 9:41 am,
        Big Al says:

        Gotta ask you Eric, how could any sane person have possibly believed that the housing bubble would continue. It made absolutely no sense what so ever!

        • On May 8, 2014 at 9:50 am,
          Eric says:

          You’re right, Al — it didn’t make any sense at the time. But go back and see what Fed officials were saying at the time about sub-prime and the rest of it.

          Now ask yourself why they don’t recognize what is happening in the sovereign debt markets. Several years from now, it is going to be much the same — people will say ‘how was it that people were willing to allow the government of the US borrow money at 2.5% — what kind of insanity was that?”

          Never mind the yields in places like Greece and Italy and Spain.

          But here we are.

          • On May 8, 2014 at 6:18 pm,
            Big Al says:

            So true Eric.

            Maybe they are not as insightful as we are!

        • On May 8, 2014 at 9:59 am,
          Marc, San Diego says:

          YOU GUYS…are soooo right and spot on….the DECEPTION is absolutely mind-boggling!

      • On May 8, 2014 at 10:30 am,
        original jj says:

        Real estate imo has more normalcy to its trends, cheap money, Nija mortgages boom bust in play.

        The S&P completely different as the primary dealers can buy just the key S&P stocks and prop up the sector at key levels then the brainless algo’s follow the momentum higher, repeat-rince

  2. On May 8, 2014 at 7:57 am,
    J........the Long.............ootb says:

    Yellen without a clue.
    I read somewhere……….she changed her NAME(and it not a maiden name change)….. maybe, that way she can change it back after she leaves office……and no one will be able to find her.
    It is funny………..WE HAVE A PRESIDENT, AND FED CHAIR,.WHO HAVE CHANGED THEIR NAMES. Something quite strange with this, I think……………O^OTB

    • On May 8, 2014 at 8:08 am,
      irishtony says:

      The..JEC..FOMC…..Why does she bother , why did Bernanke bother…they say roughly the same thing each time….They are a pair of bloody parrots…Why do people bother listening to them !!!.

      • On May 8, 2014 at 8:14 am,
        original jj says:

        Bang on!!! irsihtony

        As a market trader for 40+ years those within the industry have let these clowns create a circus, WHY does anyone give these people any time, why do we except CPI is made up of nothing real that measures inflation, why did we allow weekly money supply data to be removed……

        How could we have allowed the 157 FASB ruling from the Federal Accounting STANDARDS Board to allow the US banks to mark to their values of toxic mortgage debt to their values vs mark to market…..Arthur Anderson accounting lives on!

        • On May 8, 2014 at 8:28 am,
          irishtony says:

          JJ…..CPI is fraud & lies…If these people had to do a weekly shop for a family then they would know its lies…..But then they already know that…Here in the UK we have the LIERS (govt) telling the people the economy is improving & inflation is low..COMPULISIVE LIEING B%&£$%&S.

        • On May 8, 2014 at 9:43 am,
          Big Al says:

          Ain’t that the truth, “Original”!

      • On May 8, 2014 at 8:15 am,
        J........the Long.............ootb says:

        IRISH……..the sheeple, does not know who the FED IS, or what they DO……
        The sheeple are BRAIN DEAD…………………………..

        • On May 8, 2014 at 8:22 am,
          J........the Long.............ootb says:

          IT is the same old BS….WE have been talking about for forever…………,
          the FED. has been here longer than anyone………1913….
          Anybody out there 101 yr. old……and can still think.
          WE can thank our grandfathers for being asleep at the switch………………………………….ootb.

        • On May 8, 2014 at 9:44 am,
          Big Al says:

          Brain dead and don’t even know it Jerry! (That, by the way, is really sad.)

      • On May 8, 2014 at 9:42 am,
        Big Al says:

        Because the have to Mr. Irish. Gotta look at everything out there in these crazy markets!

        • On May 8, 2014 at 6:20 pm,
          Big Al says:

          Response to GH:

          Thanks that was funny!

      • On May 8, 2014 at 10:00 am,
        Marc, San Diego says:

        GREAT ONE…..IRISH!!

    • On May 8, 2014 at 9:39 am,
      Big Al says:

      Haven’t heard that about Mrs Yellen, Jerry. Got a source?

  3. On May 8, 2014 at 8:08 am,
    original jj says:

    US debt, no problem….just default, they’ve done it before in many different ways

    http://www.ritholtz.com/blog/2013/10/the-myth-that-u-s-has-never-defaulted-on-its-debt/

    • On May 8, 2014 at 8:26 am,
      J........the Long.............ootb says:

      Since, the Debt was created by a mindless nation, and with bad money skills……..
      A bankruptcy is in ORDER…, it is biblical to have a JUBILEE, if you learn from your mistakes., only Bankers want you to believe it is bad thing……………………………OOTB

    • On May 8, 2014 at 9:45 am,
      Big Al says:

      I personally don’t think that they have any choice at all “Original”!

      • On May 8, 2014 at 10:03 am,
        Marc, San Diego says:

        BIG AL and JJ,
        That is what we have been saying for “many moons”…it is such a CON- job…..

        • On May 8, 2014 at 6:21 pm,
          Big Al says:

          Yep Marc!

  4. On May 8, 2014 at 8:11 am,
    Joseph says:
    • On May 8, 2014 at 8:15 am,
      irishtony says:

      That’s a pretty picture…..sarc off

    • On May 8, 2014 at 8:18 am,
      original jj says:

      Yes a very possible back test to the 20 area is possible before heading lower again.

      The biggest issue I have with those kinds of charts is todays financial system is completely different from the past shown on the chart…

      In 2008 if anyone would have told me emergency low interest rates would still be in place 6 years later I’d say your nuts!

    • On May 8, 2014 at 9:47 am,
      Big Al says:

      You will get a comment on this today from Doc.

  5. On May 8, 2014 at 8:21 am,
    Dick Tracy says:

    When you pay people who are not working and support women who have children out of wedlock you are destroying the family unit.

    • On May 8, 2014 at 8:27 am,
      J........the Long.............ootb says:

      ditto…………..DT

  6. On May 8, 2014 at 8:32 am,
    Dan, calgary says:

    Gold manipulation topic on BNN in 20 minutes.

    • On May 8, 2014 at 8:37 am,
      J........the Long.............ootb says:

      the sheeple will not get it…….first, they will have to look the word manipulation up, and by that time the show will be over, with no further discussion….

      • On May 8, 2014 at 8:39 am,
        Dan, calgary says:

        Haha… Agreed. I am giving a heads up to the converted and nothing will change from this program. Maybe when it makes the cover of FT or WSJ.

        • On May 8, 2014 at 8:43 am,
          J........the Long.............ootb says:

          thanks……I do appreciate the alert…………..appreciate……………ootb

          • On May 8, 2014 at 8:51 am,
            irishtony says:

            Mr Butler , has a good piece up today…over at Goldseek…Re Silver.

          • On May 8, 2014 at 8:59 am,
            Dan, calgary says:
          • On May 8, 2014 at 9:04 am,
            J........the Long.............ootb says:

            IRISH………put goldseek………..he is trying to throw everyone off , as to where he is hiding his stash…………………..

  7. On May 8, 2014 at 9:01 am,
    J........the Long.............ootb says:

    Nothing has changed, ………….WE STILL HAVE THE MONEY PRINTING FED, which knows nothing else, only the NAMES change. Yellen, has no answer, because she is one of the problems….she has no solution, Just GRANDMA, BEHIND THE WHEEL.

    • On May 8, 2014 at 9:57 am,
      irishtony says:

      JERRY…..I said Goldseek instead of Silverseek……just trying to be posh…OK

      • On May 8, 2014 at 6:22 pm,
        Big Al says:

        Trying to be posh? Heck Mr. Irish, you are posh!

  8. On May 8, 2014 at 9:13 am,
    Dan, calgary says:

    The above BNN gold market manipulation clip was good. I was happiest to see it was done by the same group that exposed Libor manipulation and the article has not been published yet.

    This and the Butler article are baby steps but a step none the less. Maybe another 25 years and Butler will win.

  9. On May 8, 2014 at 9:35 am,
    irishtony says:

    Dan…..Another 25 years don’t say that , another 25y & i’l be brown bread…I wont get to spend my vast wealth from my silver insurance…haha…..One must feel sorry for all these billionaire bankers on their death beds , who have spent a life time stealing from the rich & poor….& finally realise they can not take it with them . & even if they could , even they know paper money burns….Shame..Shame..Shame.

    • On May 8, 2014 at 9:44 am,
      Dan, calgary says:

      I feel your pain…. I wish it was 25 minutes not years but it seems to be in the hands of a government agency and I have little faith that there will be a timely exposure of the banksters.

      I hope the relatives of these dying banksters would treat their inheritance money as blood money and not a god given gift but a conscience is needed for that.

    • On May 8, 2014 at 9:51 am,
      Andrew de Berry (Rev) says:

      Millionaire’s misprint at his funeral service Tony, a line of a hymn which says – ‘land my safe on Canaan’s side…whoops for my read ME ….!

      • On May 8, 2014 at 10:05 am,
        irishtony says:

        Andrew…..I like it ….haha…….but how can you be sure it WAS a misprint , after all some of these people think they are gods.

        • On May 8, 2014 at 11:35 am,
          Andrew de Berry (Rev) says:

          Very good point Irish.

          • On May 8, 2014 at 6:23 pm,
            Big Al says:

            Yes Reverend, a very good point by Mr. Irish!

  10. On May 8, 2014 at 10:41 am,
    Harry says:

    JP Morgan holds 76% of the entire short position in silver worldwide (anything over 5% is illegal but the SEC continues to look the other way). Nothing else matters. The price of gold and silver aren’t going to be allowed to move up or down to any meaningful extent unless JPM wants it and allows it. The Ukraine, China, the Euro, US money printing, unemployment, inflation, deflation, supply, demand, etc., mean absolutely nothing. It’s all just a bunch of meaningless noise; until JPM decides to let the price of gold and silver move nothing else is going to make the slightest bit of difference. The truly bizarre thing is that all of these people who are supposedly ‘in the know’ never make any reference to JPM’s total illegal stranglehold on the metals markets. Maybe they’re all scared of having JPM’s lawyers (or hit men) come after them and their families?

  11. On May 8, 2014 at 11:43 am,
    Andrew de Berry (Rev) says:

    Did folk see M.Keiser yesterday roasting Business Sec Vince Cable and Lazards over paying them £1.5 m to advise the government on a flotation price for Royal Mail shares. Having under-estimated Royal Mail’s true worth Lazards they neatly made a quick extra £8.5 m before bailing out.
    Vince Cable needs to be hoist by his own…… cable.

    http://www.independent.co.uk/news/uk/politics/exclusive-investment-bank-lazards-cosy-relationship-with-government-questioned-by-mps-9239335.html

    • On May 8, 2014 at 2:16 pm,
      Harry says:

      Hello Andrew, yes I did, it was excellent! Keiser is one of the best, maybe the best, and to boot he’s always highly entertaining.

  12. On May 8, 2014 at 12:13 pm,
    irishtony says:

    Andrew….I worked for “FRESHFIELDS” , many years ago…speaking to one of the senior partners one day about banks , Lazards came into the conversation…He looked me straight in the eye & said….Lazards & Rothchild run the city , the Govt, & the Monarcy……Now that says it all.

    • On May 8, 2014 at 6:24 pm,
      Big Al says:

      Seems to, Mr. Irish

  13. On May 8, 2014 at 12:34 pm,
    Andrew de Berry (Rev) says:

    Glug!!

    • On May 8, 2014 at 6:25 pm,
      Big Al says:

      Are you referring to Guinness!

      • On May 9, 2014 at 2:26 am,
        Andrew de Berry (Rev) says:

        At this rate gallons of the stuff!!!