WASHINGTON (MarketWatch) - It is always a challenge for regulators to identify bubbles, said Esther George, the president of the Kansas City Fed, on Wednesday. “Whether or not certain risks have reached the point that they represent excess, they represent bubbles, that is always murky territory,” George said at a conference sponsored by The Institute for New Economic Thinking. By the time everyone agrees there is a bubble, “you have generally waited too long,” George said. This puts pressure on monetary policy makers to smoothly unwind the bubble, she said. George is not a voting member of the Fed policy committee this year. She has been warning that zero interest rates could spark financial instability since 2013.
The funny comment at your link is that Yellen’s nickname is ‘Bubbles’. I laughed. Apocryphal, but funny, stereotypical, but a neat play on words.
The New Age of Economic Totalitarianism & the London Meeting to End Currency
I have been warning that the governments of the West are in severe trouble. We face the worst economic crisis, perhaps in modern history, with the distinct risk of moving into a state of Economic Totalitarianism. The governments are well aware of the Economic Confidence Model (ECM). Many people have questioned, “Why have they not killed you?” since it appears that most of the others central to events covered in the movie “The Forecaster” are dead. I believe the answer is rather simple, for even when I was released and appeared on Capitol Hill, I was introduced as the guy with the model they are trying to suppress.
Government is not a single entity. The forces I stood up against were restricted to the corruption in New York City. The New Yorker Magazine was able to get in to interview me, only by going to Washington. When I was thrown in the hole, it was a letter from Congress asking who ordered that treatment which resulted in my instant release. And as for my release from contempt, that only took place when the Supreme Court ordered the government to respond to my petition, for then the Solicitor General is the only one who can argue before the Supreme Court, not the corrupt prosecutors from New York City. So it is never just a single entity we call government. There are always internal forces that fight over the crumbs of power like pigeons on the ground under the tables at a sidewalk cafe.
I have advised many governments in my life, so there are those on the economic side of power who are well aware of what I stand for, not merely the prosecutors who salivate over the opportunity to take down someone famous to further their personal careers. I was perhaps the first and only analyst or Forecaster invited by the Bank of China to fly to Beijing during the Asian Currency Crisis back in 1997. I may even be the only analyst who has ever had such an experience on a truly global scale. I have been just about everywhere, and at times it appeared that if there were crisis, somehow I was dragged into it by some government somewhere. There is scarcely a major nation who is not aware of the ECM.
Continue reading at http://armstrongeconomics.com/archives/30145
Stocks too high, Yellen says, well that’ll larn’em, dropped today, will they continue down? How bad are P/E ratios at this time? Or don’t P/Es count any more?