Fed Hits Rumor Panic Button: “Sources” Confirm Yellen’s Confidence In US Recovery

Fed Hits Rumor Panic Button: “Sources” Confirm Yellen’s Confidence In US Recovery (ZeroHedge, Oct 15, 2014):

It would appear The Fed is in panic mode. According to two “people familiar with her comments” – who asked not to be named because the meeting was private last weekend:

  • *YELLEN SAID TO VOICE CONFIDENCE IN EXPANSION AMID FOREIGN RISKS

Of course, this is now the last thing that markets want to hear since it means she is less likely to unleash QE4.

 

Flashback:

Whether Or Not We Like It: “We shall have World Government”:

McHUGH:
Well, I’m a renegade banker. I have sat in at meetings where the Federal Reserve came in, sat down and “said stop lending, we think there is a recession coming.” The very fact that we were told to stop lending caused a recession. That happened in 1990-1991. Word of that finally hit the mainstream media and one of the first acts Clinton did was that he grabbed the regulators by the throats and said, “why don’t you let the bankers start lending again.” The next time they came in, they told us to start lending.

They have that kind of power. They decide when recessions and depressions happen. They decide when hyperinflation happens.

They can do it through a lot of different tools. The hidden one is the regulatory agencies where they come in and intimidate bankers and tell them what to do. They have a lot of power. They can have the boards of directors of banks thrown in jail. They can have people fired. They use those powers behind the scenes, nobody knows about them. As a banker, I have seen the dark side of the Fed. I have watched them rate good loans as bad loans, and charge off loans when in fact, customers were fine, the loans were fine. We are in a bit of that environment again now. What happens is, the last thing these government agencies want to happen is that they get called on the carpet before Congress. So they become overzealous, overcautious at precisely the wrong times. There is a lot of action by the Fed that messes with the normal business free market cycles that would prevent excesses. A lot of the publicity in today’s market is that there wasn’t enough government intervention, there wasn’t enough regulation and that is true too, they got too far in one extreme, but they create imbalances and create these problems by overacting as well. [emphasis mine]

 

3 thoughts on “Fed Hits Rumor Panic Button: “Sources” Confirm Yellen’s Confidence In US Recovery

  1. According to Bloomberg this morning is a “liquidity crisis”, another word for cash.
    How long have we discussed this?
    Let me say again what M. Eckles said when asked in 1952 what caused the Crash of 1929……this time, money is moving east like crazy because of Obama’s insane threats to Putin and his inner circle. But, what M. Eckles said still applies:

    “As in a poker game, as the chips get concentrated in fewer and fewer hands, the other fellows can only stay in the game by borrowing. When their credit ran out, the game stopped.”

    The FED is pulling the plug. There are a lot of greedy guts going for cover………No more QE.

  2. Bankers have used money, or lack of same to control the world economy for centuries. The focus here is the west, and the banks are cutting back their connection with the west, one they have held for centuries. The time of Henry VIII, Elizabeth I, and so on, all pointed the growth west. With the evolution of the industrial revolution, the west seemed invulnerable.

    Now, suddenly without warning, all funds are going east, and the once credible west is sliding downhill as the east rises up. If bankers paid heed to anything but their greed, they would remember the historical pattern…….every thousand years, the world economy shifts to the east, then it shifts again.

    The US and the EU have been gutted by greedy gut bankers, politicians and money changers of all varieties……..and the money is gone. It has been squandered on the wishes of the few without regard to the many. It happened at the time of Charles I, again at the time of Louis XVI……..and so on. People finally rise up, and the top gets cleaned up for a short while. Louis XVI was followed by that maniac, Robespierre, then the corrupt Directory headed by Paul Barras

  3. Had the computer cleaned up, it moves faster than I can. Point was that the Directory was followed by Napoleon as First Council……..and had he kept his ego in place, he could have ruled France for many years without dissent. Instead, he had himself crowned Emperor in 1804…….becoming a threat to the crowned heads across Europe who ruled by the Divine Right of Kings…..and many former Republicans who believed in the Republic of France.

    Ego, that part of humanity as defined by Freud, is the most destructive and short sighted aspect of all people who rise to power quickly with a genius (such as Putin’s) used to enrich the nation, not the greedy guts.

    France was bankrupt when Napoleon took over. When he lost his throne in 1814, France was debt free………It appears to me that Putin is working on behalf of the people, not a few greedy guts, and as a result, they will endure a lot as long as they know he works for Russia.

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