Janet Yellen vs Larry Summers

Do you want Janet Yellen or Lawrence Summers to be the next Fed President and Why?

  • Janet Yellen

    Votes: 20 55.6%

  • Lawrence Summers

    Votes: 16 44.4%
  • Total voters
    36
  • Poll closed .
Quote from Martinghoul:

You're making no sense whatsoever...

FOMC selling bonds in Dutch auctions, because of negative rates? Negative rates being hyperinflationary because they're deflationary?

BTW, you've been talking about your CFA studies for a while now? By now, you should be done with Level III. Have you passed any of the exams? Shall we test some of your "complete understanding" of MBS?

At any rate, you really have no clue what you're talking about and are just spouting off random terms in no particular order. This isn't the first time you do it, either. So you'd better put me back on ignore, 'cause I just can't respond to you in ways that won't appear offensive and derogatory to you. Sorry, but I have no other way to convey to you just how ignorant you sound.
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This thread is bizarro world anyway.

Yellen says to take rates to below zero, so deflationary it's hyperinflationary.

Explained why and if there's something you don't know, then I know that you won't know even if I were to re-explain why you still wouldn't know.

I have an understanding on macro that you don't share.
 
Sure, you're the macro expert here, but you just can't answer a simple question.

Which level CFA exam have you passed now? Given your extensive knowledge of the curriculum and all...
 
Not being as well-versed in economics as I would like to be: how would negative interest rates work? The govt pays people to hold treasuries? (they cannot pay me enough) I go to refinance and bank gives me an interest-free loan? (wow, better than a toaster)
 
Quote from drcha:
Not being as well-versed in economics as I would like to be: how would negative interest rates work? The govt pays people to hold treasuries? (they cannot pay me enough) I go to refinance and bank gives me an interest-free loan? (wow, better than a toaster)
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Negative rates have nothing to do with treasuries... It's about short rates and, more specifically, IOER. Several countries have done this in the past and Denmark has them in place even now.
 
Quote from drcha:

Not being as well-versed in economics as I would like to be: how would negative interest rates work? The govt pays people to hold treasuries? (they cannot pay me enough) I go to refinance and bank gives me an interest-free loan? (wow, better than a toaster)
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No, <u>we pay the government to buy treasuries.</u> (Yes, way better than a toaster if you're lending to me, bank pays me to take out a loan).

It's bizzaro because big institutions will buy treasuries just so they receive their principal even if it is less (ie:fear levels so high expectations are to lose money this maturity). Since there was such a high demand and the YTM's on a few shorter term bonds did go negative, the impetus was the above such that they would receive principal and even though the amount they would receive of course would be less later, they have such a high fear level that they were willing to accept this discount on their capital, which is deflationary, and so they must raise prices to replenish capital, which is hyperinflationary, and that mind fuck is why this conversation is so effed in the mouth. That scenario should not ever happen, but could be common under Yellen and has happened somewhat fairly way more often than any other Fed President before Bernanke. Yellen'll have good practice dealing with those maturities having already had to handle it as Ben's Vice Chairwoman, but, still,<b> it should not ever be that way.</b>
 
Quote from Scataphagos:


It would be best for America if the government and the Fed ceased "currency destruction" policies.
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They cannot because fiat currency devaluation is being rampantly abused by other countries and the Fed must keep the money supply in line with where it's at.

This is why the Fed should never be abolished because it controls that imbalance.
 
Quote from bwolinsky:

"... This is why the Fed should never be abolished because it controls that imbalance.
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That may be "their" argument... but history reveals that WE ALL GO BANKRUPT!

Eons ago, it was a crime, punishable by death, to "clip coins"... which is the reason our coin money has ridges around the edge.

"Money printing by the Fed" is just the modern, techno way of currency debasement.
 
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