House Republicans Accuse Fed of Conspiracy Against the Poor

[georgephillip]

"Yesterday, four Republicans on the House Financial Services Committee, during the semi-annual monetary policy testimony by Fed Chair Janet Yellen, presented a persuasive argument that it’s really the Federal Reserve (which was flattered by many House Democrats at the hearing) that’s sacrificing the poor and middle class in order to benefit the rich and 'the Goldman Sachs CEOs of the world.'”

"Congressman Ed Royce, Republican from California, said that he was 'concerned that the Federal Reserve has created a third pillar of monetary policy, that of a rising and stable stock market.'

"Royce said that Yellen’s predecessor, Fed Chair Ben Bernanke, had told the Committee that the goal of quantitative easing was to increase asset prices like the stock market in order to create a wealth effect.

"Royce raised the specter that the Fed is actually being held hostage by the stock market and Wall Street, stating:

“'Every time in the last three years when there has been a hint of raising rates and the stock market declined accordingly, the Fed has cited stock market volatility as one of the reasons to stay the course and hold rates at zero.'”
Wall Street On Parade
Is Royce on to something?
Allegedly, the Fed's two primary pillars of monetary policy are to promote maximum employment and stable prices.
Yellen appears to support a third pillar underpinning the stock market.
What would Trump and Hillary say?

 

[georgephillip]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

 

[LA RAM FAN]

"Yesterday, four Republicans on the House Financial Services Committee, during the semi-annual monetary policy testimony by Fed Chair Janet Yellen, presented a persuasive argument that it’s really the Federal Reserve (which was flattered by many House Democrats at the hearing) that’s sacrificing the poor and middle class in order to benefit the rich and 'the Goldman Sachs CEOs of the world.'”

"Congressman Ed Royce, Republican from California, said that he was 'concerned that the Federal Reserve has created a third pillar of monetary policy, that of a rising and stable stock market.'

"Royce said that Yellen’s predecessor, Fed Chair Ben Bernanke, had told the Committee that the goal of quantitative easing was to increase asset prices like the stock market in order to create a wealth effect.

"Royce raised the specter that the Fed is actually being held hostage by the stock market and Wall Street, stating:

“'Every time in the last three years when there has been a hint of raising rates and the stock market declined accordingly, the Fed has cited stock market volatility as one of the reasons to stay the course and hold rates at zero.'”
Wall Street On Parade
Is Royce on to something?
Allegedly, the Fed's two primary pillars of monetary policy are to promote maximum employment and stable prices.
Yellen appears to support a third pillar underpinning the stock market.
What would Trump and Hillary say?

george you been gone a while.i see you're back.good op.

 

[Toddsterpatriot]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

 

[georgephillip]

"Yesterday, four Republicans on the House Financial Services Committee, during the semi-annual monetary policy testimony by Fed Chair Janet Yellen, presented a persuasive argument that it’s really the Federal Reserve (which was flattered by many House Democrats at the hearing) that’s sacrificing the poor and middle class in order to benefit the rich and 'the Goldman Sachs CEOs of the world.'”

"Congressman Ed Royce, Republican from California, said that he was 'concerned that the Federal Reserve has created a third pillar of monetary policy, that of a rising and stable stock market.'

"Royce said that Yellen’s predecessor, Fed Chair Ben Bernanke, had told the Committee that the goal of quantitative easing was to increase asset prices like the stock market in order to create a wealth effect.

"Royce raised the specter that the Fed is actually being held hostage by the stock market and Wall Street, stating:

“'Every time in the last three years when there has been a hint of raising rates and the stock market declined accordingly, the Fed has cited stock market volatility as one of the reasons to stay the course and hold rates at zero.'”
Wall Street On Parade
Is Royce on to something?
Allegedly, the Fed's two primary pillars of monetary policy are to promote maximum employment and stable prices.
Yellen appears to support a third pillar underpinning the stock market.
What would Trump and Hillary say?

george you been gone a while.i see you're back.good op.

Thanks, 911.
I missed the abuse, I guess.

 

[georgephillip]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

I hope so.

 

[Toddsterpatriot]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

I hope so.

Why would $5 make me worry?

 

[BuckToothMoron]

The QE and low interest rate policy the Fed has been doing is driving some asset classes higher, and those assets are largely owned by the upper class, eg stocks, bonds and real estate. It has totally screwed the poor and those fixed income retirees. There are Extremely low interest rates on borrowing but it's more difficult to qualify for the cheap money loans. Here in Denver the housing market is up 15% over the last year and rents are up accordingly, forcing the lower income renter to spend more on housing. Central banks and politicians trying to "fix" the economy just delay any enevitable declines. Janet even mentioned the recession word testimony. Although she said it was unlikely, the mere fact that she mentioned it tells you that it is a possibility. Don't look for any rate hikes soon, and you might squirrel away some gold in the mean time.

 

[georgephillip]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

I hope so.

Why would $5 make me worry?

Cubs are born losers.

 

[Toddsterpatriot]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

I hope so.

Why would $5 make me worry?

Cubs are born losers.

Best record in baseball.

 

[georgephillip]

The QE and low interest rate policy the Fed has been doing is driving some asset classes higher, and those assets are largely owned by the upper class, eg stocks, bonds and real estate. It has totally screwed the poor and those fixed income retirees. There are Extremely low interest rates on borrowing but it's more difficult to qualify for the cheap money loans. Here in Denver the housing market is up 15% over the last year and rents are up accordingly, forcing the lower income renter to spend more on housing. Central banks and politicians trying to "fix" the economy just delay any enevitable declines. Janet even mentioned the recession word testimony. Although she said it was unlikely, the mere fact that she mentioned it tells you that it is a possibility. Don't look for any rate hikes soon, and you might squirrel away some gold in the mean time.

When I moved into my neighborhood 21 years ago market rents for a studio apartment were $375 a month. Today, they are about $950 AFTER the greatest economic decline since 1929?

 

[georgephillip]

"Royce is clearly on to something. When the stock market tanks, the share prices of the big Wall Street banks plummet to a greater degree than the overall market because of the trillions of dollars (yes trillions) in derivatives they hold and the lack of transparency as to whether the counterparties on the other side of these trades will be solvent in a plummeting market."
Wall Street On Parade

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

I hope so.

Why would $5 make me worry?

Cubs are born losers.

Best record in baseball.

It's your $5.

 

[OffensivelyOpenMinded]

"Yesterday, four Republicans on the House Financial Services Committee, during the semi-annual monetary policy testimony by Fed Chair Janet Yellen, presented a persuasive argument that it’s really the Federal Reserve (which was flattered by many House Democrats at the hearing) that’s sacrificing the poor and middle class in order to benefit the rich and 'the Goldman Sachs CEOs of the world.'”

"Congressman Ed Royce, Republican from California, said that he was 'concerned that the Federal Reserve has created a third pillar of monetary policy, that of a rising and stable stock market.'

"Royce said that Yellen’s predecessor, Fed Chair Ben Bernanke, had told the Committee that the goal of quantitative easing was to increase asset prices like the stock market in order to create a wealth effect.

"Royce raised the specter that the Fed is actually being held hostage by the stock market and Wall Street, stating:

“'Every time in the last three years when there has been a hint of raising rates and the stock market declined accordingly, the Fed has cited stock market volatility as one of the reasons to stay the course and hold rates at zero.'”
Wall Street On Parade
Is Royce on to something?
Allegedly, the Fed's two primary pillars of monetary policy are to promote maximum employment and stable prices.
Yellen appears to support a third pillar underpinning the stock market.
What would Trump and Hillary say?

Its true.

 

[Toddsterpatriot]

I just placed a $5 bet on a Cubs game.

My bet (derivative) has a notional value of $2.5 billion. Should I worry?

I hope so.

Why would $5 make me worry?

Cubs are born losers.

Best record in baseball.

It's your $5.

But the notional value is $2.5 billion.
Like the notional number in your graphic is $516 trillion.

 

[georgephillip]

"Yesterday, four Republicans on the House Financial Services Committee, during the semi-annual monetary policy testimony by Fed Chair Janet Yellen, presented a persuasive argument that it’s really the Federal Reserve (which was flattered by many House Democrats at the hearing) that’s sacrificing the poor and middle class in order to benefit the rich and 'the Goldman Sachs CEOs of the world.'”

"Congressman Ed Royce, Republican from California, said that he was 'concerned that the Federal Reserve has created a third pillar of monetary policy, that of a rising and stable stock market.'

"Royce said that Yellen’s predecessor, Fed Chair Ben Bernanke, had told the Committee that the goal of quantitative easing was to increase asset prices like the stock market in order to create a wealth effect.

"Royce raised the specter that the Fed is actually being held hostage by the stock market and Wall Street, stating:

“'Every time in the last three years when there has been a hint of raising rates and the stock market declined accordingly, the Fed has cited stock market volatility as one of the reasons to stay the course and hold rates at zero.'”
Wall Street On Parade
Is Royce on to something?
Allegedly, the Fed's two primary pillars of monetary policy are to promote maximum employment and stable prices.
Yellen appears to support a third pillar underpinning the stock market.
What would Trump and Hillary say?

Its true.

Some of these Republicans sound like Bernie:
Wall Street On Parade
"Congressman Scott Garrett, Republican from New Jersey, said that the super low interest rates targeted by the Fed have raised the value of the stock market and he asked Yellen pointedly who the beneficiaries of this happen to be. Without waiting for an answer, Garrett cited a Gallup poll which showed that ;90 percent of households with incomes over $75,000 own stock. Only 21 percent of households earning under $30,000 own stock.'

"In fact, it’s actually the super rich who own the vast majority of the stock market. According to the most recent 2013 Federal Reserve 'Survey of Consumer Finances,' which is conducted every three years, the rate of direct or indirect stock ownership by the very top income group 'increased 3.9 percentage points from 2010 to 2013, reaching 92.1 percent, slightly above the 91.7 percent found in the 2007 survey.'

"Garrett stated curtly to Yellen: 'Who are you benefitting? The rich. Who are you hurting? The poor.' Finishing with the ultimate insult, Garrett asked Yellen why she needed to benefit 'the Goldman Sachs CEOs of the world.'”

Wall Street On Parade

 

[georgephillip]

I hope so.

Why would $5 make me worry?

Cubs are born losers.

Best record in baseball.

It's your $5.

But the notional value is $2.5 billion.
Like the notional number in your graphic is $516 trillion.

What's your point?

Loser

 

[Toddsterpatriot]

Why would $5 make me worry?

Cubs are born losers.

Best record in baseball.

It's your $5.

But the notional value is $2.5 billion.
Like the notional number in your graphic is $516 trillion.

What's your point?

Loser

The point is, $516 trillion is an inaccurate number. Wildly so.

But it does scare the idiots.

 

[rdean]

The GOP's war on the poor is not a conspiracy. It's part of their party platform. Everyone knows that. We've known it for years.

 

[georgephillip]

Cubs are born losers.

Best record in baseball.

It's your $5.

But the notional value is $2.5 billion.
Like the notional number in your graphic is $516 trillion.

What's your point?

Loser

The point is, $516 trillion is an inaccurate number. Wildly so.

But it does scare the idiots.

Would you like to explain why "idiots" shouldn't fear rich FIRE sector parasites engaging in speculative economic practices that are likely to crash the productive economy and require large taxpayer bailouts again?

 

[Toddsterpatriot]

Best record in baseball.

It's your $5.

But the notional value is $2.5 billion.
Like the notional number in your graphic is $516 trillion.

What's your point?

Loser

The point is, $516 trillion is an inaccurate number. Wildly so.

But it does scare the idiots.

Would you like to explain why "idiots" shouldn't fear rich FIRE sector parasites engaging in speculative economic practices that are likely to crash the productive economy and require large taxpayer bailouts again?

The crash and bailout wasn't because some traded derivatives.
It was because of a real estate bubble.
A bubble worsened by government policies pushing banks to make loans to riskier borrowers.
A bubble worsened by government policies pushing Fannie and Freddie to buy more of these risky loans.