Yellen: Poor values may undermine bank safety

Federal Reserve Chair Janet Yellen lashed out at the culture in the nation's biggest banks on Tuesday saying "there may be pervasive shortcomings in the values of large financial firms that might undermine their safety and soundness." 

In a speech in New York City, Yellen, who as head of the Federal Reserve is the nation's leading bank supervisor, said that the Fed expects banks to follow the law and act ethically. "Too often in recent years, bankers at large institutions have not done so, sometimes brazenly," she said.

DYI Comment:  Mrs. Yellen when they break the law someone goes to prison.  So far there have been zero arrests or convictions and yet their brazen activity continues.  Lashing out doesn't mean a thing only action; arrests and convictions.  Is Mrs. Yellen all bark and no bite?  Let's hope that the Fed's have someone as mean as a junk yard dog to clean up the banker's misdeeds. Unfortunately most of the statue of limitations has run out for the bulk of the crimes during the downturn.

Dollar Strength is Masking Gold's Surge

 The Global Economy Is Headed For An Epic Crash, And It Cannot Be Stopped.

What must be clear is since the debt expansion cycle demands an ever increasing amount of debt to be added in order to function, it cannot be sustained BY ANY MEANS. What the world central banks are attempting to do with their "debt from thin air" mechanism is to prop up a failed system. This continued debt expansion is fueling the financial monster even further, creating greater distortions in the financial markets and global economy. 

The issue is a simple one. All of the gross distortions which have been/and continue to be made worse by the debt expansion mechanism MUST balance out at one point. 

This "rebalancing" is going to occur, it is a mathematical certainty. When this event occurs all of the distortions across every asset classes will correct to fair market value.

Nasdaq 5,000 Is Different This Time……But Not In A Good Way!

Since the two days of March 9 and 10 in the year 2000 when the Nasdaq closed over the 5,000, the financial markets have been converted into central bank managed gambling halls and 

the global economy has bloated beyond 

recognition by 15 years of non-stop financial 

repression. 

Back then, a few hundred stocks were wildly over-valued based on monetizing eyeballs; now the entire market is drastically overvalued owing to the false financial market liquidity generated by $14 trillion of central bank asset monetization—-mostly public debt— since the turn of the century. 

As a result, the global financial system and economy are orders of magnitude more fragile and vulnerable to collapse than they were 15 years ago. Indeed, nearly all of the tail winds which managed to quickly revive markets and economic growth after the dotcom crash have now played out, and, if anything, will morph into stiff headwinds in the period immediately ahead.

So today what is different is not the Wall Street spiel that Nasdaq is anchored by the likes of Apple rather than Webvan. 

What is really different is that the broad market 

represented by the S&P 500 is trading at the tippy 

top of its historic range—- 20X reported earnings—-in a world where PE multiples and profits are deeply imperiled. That is, the headwinds arising from the very central bank aberration that cushioned the collapse of Nasdaq the first time around will soon come to bear on the entire market, not just the narrow sector of high flyers that confused eyeballs with earnings. 

DYI