Yellen Lying About Cause of Recent Financial Bubbles

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.  …

OMG.   They got away with this in the great ripoff of the 30’s but surely not today.  If people can’t see through this then maybe we deserve what we get.   It’s not rocket science that the amount of speculation is a function of the amount of credit available in the economy, which is a function of (fed controlled) short term interest rates and (fed controlled) liquidity.

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