Anybody watch the Janet Yellin dog & pony show in the Senate today?
Auuuugggh!
She used the term “Price/Equity Ratio” to justify her Keynesian belief that the Fed “Quantitative Easement” is not causing some sort of stock market bubble.
Duh! She clearly doesn’t know jack about the stock market. She showed her woeful ignorance in stock market terminology by making up a term for something she doesn’t understand. The correct term is “Price/Earnings” ratio and that is a commonly used to determine if the markets are overvalued.
The concept of “price/equity” ratios is already expressed in terms of “price-to-book” ratios!
The problem the Berkeley so-called “economist” doesn’t understand is that were it not for the EZ-money policies of the Fed, the STOCK MARKET WOULD BE MUCH LOWER TODAY. Period.
As Peter Schiff said:
“I had my money on the assumption that Obama would pick Yellin... That was because I expect Obama will choose the WORST one of the possible candidates. And Obama didn’t disappoint...”
Wow... Schiff nailed it.
In the Senate hearing, all the Elizabeth Warrens and Chump Shumers of the world were gushing all over her. That should be a bad sign.
We’re doomed.
I have very little regard for Yellen. She seems to have many agendas, but none that really help the American economy. Economics is not about printing money. It’s about giving incentives for people to be productive. Liberalism, by its very nature, is diametrically opposed to that.