Friday, February 21, 2014

Why the Fed gets paid the big bucks

This picture of Bernake praying pretty much sums up the FED policy. PRINT money and hope that fixes something...

Yea, Bernake is right, it's an adverb. Too bad the Federal Reserve DOES NOT know anything about how to do long term growth in an economy.... Hands off the economy!

More quotes from the brainiacs at the Fed:

  1. Bill Dudley December 2008: "I read the Stiglitz paper three times, and then I started to understand it. [Laughter] "

  2. Bernanke: "the NBER finally recognized that a recession began in December 2007....they also recognized that Christmas was on December 25"

  3. Pisani: "the markets don't react to anything"

  4. Yellen December 2008: "I hope that a recovery will begin in the middle of next year"

  5. Fisher December 2008: "The economist who gives a negative forecast is arrested for treason. Stay here. [Laughter]"

  6. Bernanke: "I’m in awe of a presentation that has Rube Goldberg, the Black Death, “Bennie and the Jets and full frontal in it [Laughter]”

  7. Fisher: "we’re at risk of being perceived as migrating from patron saint of Milton Friedman to a new patron saint—Rube Goldberg. [Laughter]"

  8. A little late, but we'll take it: "It is becoming abundantly clear that we are in the midst of a serious global meltdown."- Yellen, Oct '08

  9. Bernanke March 2008: "At some point either things will stabilize or there will be some kind of massive governmental intervention"

On Fri, Feb 21, 2014 at 11:29 AM, liberal Dude wrote:
he is right
-----Original Message-----

We're all screwed..

"We are not clueless," Kevin Warsh notes in this September 16th 2008 Federal Reserve transcript (as the entire financial system was imploding around them); but it is the final 'debate' in this brief section that sums up what Marc Faber has feared all along. Adjective or Abverb?
MR. WARSH. I think the sentiment we are trying to suggest is watchful waiting. We are not indifferent, we are not clueless, we are paying attention, but we are not predisposed. Hence, Governor Kohn’s suggestion.
MR. KOHN. My suggestion was to substitute “carefully” for “closely.” I agree that “monitor closely” had this other connotation, but I think we should be seen as paying more attention than usual. There might be another alternative.
MR. DUDLEY. “The Committee will carefully evaluate economic and financial market developments.” That means you are on the case.
CHAIRMAN BERNANKE. Well, it is not an analytical thing we are doing. We are just watching closely.
MR. WARSH. Keenly? Carefully?
MR. LACKER. Mr. Chairman?
CHAIRMAN BERNANKE. Yes. President Lacker.
MR. LACKER. Including “closely,” what does that imply about the opposite? I mean, are we going to be able to take that out?
MR. WARSH. Well, we have done things like “in a timely manner” and other kinds of phraseology.
MR. LACKER. Yes, but this is an adjective.
CHAIRMAN BERNANKE. No, it’s an adverb.
MR. LACKER. There goes my credibility. [Laughter]


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