Could take 5-8 years to shrink Fed portfolio: Yellen

Comments (6)
Mott wrote:

Economic recovery seems to be on its own independent of what Fed seems to believe is under its control.

I guess this belief keeps them in their jobs.

May 08, 2014 1:21pm EDT  --  Report as abuse
comitas7 wrote:

“We can see that going out 20, 30, 50 years without some further shifts in fiscal policy, it’s projected that the ratio of debt to GDP will rise to unsustainable levels,” Yellen told the Senate Budget Committee.”

These shameless frauds believe they can predict 20-50 years ahead when they were completely clueless before 2007; and were the foremost cheerleaders for speculative interests.

May 08, 2014 1:31pm EDT  --  Report as abuse
Rich_F wrote:

5-8 years? LOL what a laugh. i would love to see what underlying data they’re using to project this. let’s say they want to reduce it to $500 billion that means they need to unwind $3.5 trillion or $440 billion over 8 years. how is the economy going to stomach the removal of $440 billion a year consistently over 8 years? the answer is it won’t. this also assumes we don’t have another black swan event where they have to prop up markets again.

May 08, 2014 2:16pm EDT  --  Report as abuse

Shrinking the balance sheet? Isn’t this just another example of the Fed “sweating the small stuff” instead of the state of our real economy of jobs, production, and profits?

The job of the Fed is to provide our public and private employers with enough revenues that the produce full employment levels of production without inflation.

Fiddling with the Fed’s balance sheet and its totally irrelevant “target rate” will not do that and neither will sending dollars abroad and propping us the securities markets via its current (ineffective) QE. For goodness sake, Governors, read John Lindauer’s General Theories of Inflation, Unemployment, and Government Deficits” and stop repeating policies that don’t work over and over and over again thinking that some day the result will be different.

May 08, 2014 2:28pm EDT  --  Report as abuse
libertadormg wrote:

Monetize the debt and get it over with. I lived in a South American country and saw six zeros lopped off the currency within a span of 20 years. Yes, that a note that was 10,000 became 1 and just renamed a new currency twice.

May 08, 2014 4:44pm EDT  --  Report as abuse
Laster wrote:

Who knows? Who has faith in an organization that can create account out of thin air?

I understand ostensibly there are rules and articles governing the behavior yet coincidentally this exclusive purview allows unfettered latitude in times of distress.
If you are unilaterally allowed to dictate the terms, and frame the context, of your authority, those subordinated by that authority will ultimately lose.

Without the natural occurrence of loss in markets you have in effect created the “company store” benefiting a short list of participants.

Hopefully someday this financial system will be exposed for what it is.

May 08, 2014 10:26pm EDT  --  Report as abuse
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