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-------- Original Message --------
| Subject: | Gender Politics In the US, the Case of Janet Yellen |
|---|---|
| Date: | Sun, 17 Nov 2013 12:31:38 -0800 |
| From: | Jas Jain |
Gender Politics In the US, the Case of Janet Yellen
Q: What is the best way to find the person "most qualified" for the job to become the next Chairperson of the Federal Reserve?
A: An academic, who has by far the worst record as the President of the most important District of the Federal Reserve, District #12, San Francisco, with 20% of the US GDP under its supervision. "Yellen's region included three of the four states hardest hit by foreclosures - Nevada, Arizona and California. The same states also led the nation in the percentage of consumer bankruptcies." Yellen was the President from June 2004 to October 2010, tenure with severe job losses in the district caused by mortgage fraud, originating in California, which led to the housing bubble, and its aftermath that caused the Crisis in 2008. If you judge someone by what happened on that person's watch then we have the economic horror story of the past 60 years transpiring right under Janet Yellen's nose. The Fed President with the best record, Richard Fisher of the Dallas District, had this to say: "Janet Yellen is a nice person but she is wrong on policy." This seals the deal for her appointment!
When it came to her role in the disaster Janet Yellen Sent Mixed Signals On Housing Bubble While At Fed; "mixed signals" are worse than no signals. After issuing a warning in June 2007 Fed meeting, "in a speech a few weeks later, she declared "I do not consider it very likely that developments relating to subprime mortgages will have a big effect on overall U.S. economy performance."… During the housing boom the Fed debated whether to raise interest rates to deflate asset bubbles, and she was firmly in the camp that believed it should not, Ms. Yellen said in the FCIC interview." She even used the same excuse about her own authority to check problems that Bernanke used in 2008 that the Fed didn't have the authority. Control freaks complaining about not having enough authority! And they get more authority after the previous failures!!
How about her competence? "For my own part," Ms. Yellen said, "I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.'s — I didn't see any of that coming until it happened." And she wouldn't in the future. The academic economist, a real-world bimbo, doesn't understand the world of derivatives and finance and the bad actors with enormous power who don't have a single penny of their own at risk. She seems completely ignorant of human nature and "…perverse incentives. Incentives that encourage people to engage in economically harmful activities. For example, if mortgage issuers are paid for the number of mortgages they issue, regardless of whether borrowers can repay the mortgage, they will have incentive to issue mortgages that can't be repaid." The American corporate and financial system is riddled with perverse incentives and those who are most likely to profit from them have created them.
Horrible Record of the Present and the Near Future at the Most Critical Time
Ms Yellen's Outlook in July 2008, six months after the US recession had already begun and two months before the Crisis hit:
"Now I'd like to pull all of these threads together to give you my outlook for the economy. Activity has been weak since late last year, and, given the three shocks I've discussed, I expect the economy to grow only modestly for the remainder of the year, but to pick up next year."
The actual GDP (Annual Rate):| 2008Q3 | -3.66% |
| 2008Q4 | -8.89% |
| 2009Q1 | -5.25% |
| 2008Q2 | -0.31% |
In California, the recession that began much earlier than the US recession was very obvious in July 2008 to even a layperson. The unemployment rate in California was steadily rising for 16 months! And she still expected the economy to grow? She was simply lying because that is what the job requires.
No Equity Bubble, a Bald-Faced Lie
Even before her appointment is confirmed she is lying, the most important quality in the Fed Chairperson since Greenspan who prided himself for obfuscation in his answers to the Congress, his real bosses. None of her two predecessors were held responsible for any of the problems on their watch and she knows that she can mislead without any consequence. "Yellen rejected the notion that stocks are in bubble territory, despite the major indexes hitting record highs in the context of a stagnant economy and high unemployment, pointing to the equity risk premium and other valuation metrics."
Her claim that there is no stock market bubble is a statistical lie based on the work of Robert Shiller, the latest winner of the Bank of Sweden ("Nobel") Prize in economics. The market valuation based on Shiller's Cyclically Adjusted (it smoothes out cyclical variations by averaging over a 10-year period) P/E is at 91 percentile, i.e., only 9% of the time the stock market was more over-valued in the past 133 years than today. One of Yellen's defenders, Fed District President James Bullard, said that we are nowhere near the 1990s. True, but that was the worst bubble of all time and can't be a measure to judge the future bubbles. If we compare to the 1881-1995 period, the current stock market valuation is at 99 percentile and the 1% over-valuation period was during Nov 1928 - Oct 1929. We are partying like 1929! But not like the late 1990s.
Folks, she is going to be very dangerous and in few years (less than 4 years, IMO) she would make people forget mismanagement under Greenspan and Bernanke. What she did for Arizona, California and Nevada during 2004-2010 she will do for the whole of US and some. Financial manipulators are not going to be afraid of little Jenny! It is an open invitation to fraudulent financial practices just what encouraged the mortgage fraudsters in California. Scam Market goons already got the telegraph.
Bad Choices Driven by Gender and Ethnic Politics
The sad fact of American politics is that gender and race/ethnicity are increasingly taken into account when it comes to high profile appointments. Obama administration has been the most blatant in pandering to groups in his appointments, but both parties have been forced to the practice by the PC climate. GW Bush campaign had identified Condom Lisa Rice (Have Condoms; Will Travel! Something that Mohammad Qaddafi took too seriously) before the final decision was made for him to run for the presidency. Having a black woman in a very important position was essential for GW Bush to blunt charges of racism and sexism that were laid against his father in terms of appointments during the debates in 1992 elections.
Yellen for the Fed Chair movement was in full force by feminist women for several months before Larry Summers withdrew. Her horrible record was covered up by false praise for her from politicians and other political hacks amongst economists. She is very well connected. She also happens to have the right ethnicity for the job.
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