Grandma Yellen Pats Markets on the Head and Sends them off to Bed … with a Warm Glass of Poison
By David Haggith
TheGreatRecession.info
February 3, 2018
The sweet grande dame of the central bankster world sees nothing but the brightest future to the furthest horizons for the markets she has been nurturing with her benevolent “wealth effect,” as one of her close colleagues called it. While Grandpa Greenspan routinely warns now that stock and bond markets are in bubbles, Grandma Yellen says,
I don’t want to label what we’re seeing as a bubble. But I would say that asset valuations are generally elevated.… For the stock market, the ratio of price to earnings…is near the high end of its historical range. If we look at for example of commercial real estate and other assets, we’re seeing high valuations.
In other words, we should really be calling it the “everything bubble” where stocks, real estate and “other assets” (such as bonds) are all at the top their curves. But that should be no concern; and, of course, she would not label any of these things as “bubbles” because that would mean she has presided over years of creating an empty world full of financial troubles.
“Bubble, bubble, toil and trouble” would, however, be the best words to describe Yellen’s policy and what is to come out of it. Those, indeed, might be the words she was incanting over this market brew in the basement of the Fed’s Eccles building, but they are not words you would ever hear the ex-chief central bankster saying in public right as she leaves office. Only historic bankster barons like Greenspan dare invoke the word “bubble” when speaking of what others have created.
Beware this lady’s matzo ball soup. It was cooked in a caldron, and is being served by a cracker. A nice cracker, but a cracker all the same. And, with a cracker, comes the crunch, which is what we all felt this week.
Yelled demurred on her exit interview Friday that she would have liked to have a longer stay in the top office of the Eccles building.
“I would have liked to serve an additional term and I did make that clear, so I will say I was disappointed not to be reappointed. I think things are looking very strong.
“Looking very strong,” she said, as the Dow saluted her exit with a diabolical 666-point backward flop as she made her way out the door, having convulsed the entire week over a mere upward blip the Fed caused in long-term interest rates. Dow futures were pointing down 744 points beneath the ground this weekend. Yellen, however, was satisfied with this effect on the market.
The Rest…HERE
