First though he has never admitted pointing a cannon at the deck of his own ship and firing, thanks Mr. Summers for at least withdrawing from consideration of a position where you could do even more damage. Now on to Vice Chair Janet Yellen
To address one concern that I have heard, there is no evidence that the Federal Reserve's purchases have impaired the functioning of financial markets, and, while we continue to monitor market function carefully, so long as we pursue our purchases sensibly, I do not expect market functioning to become a problem in the future. Further, I've argued previously, and still judge, that the FOMC has the tools it needs to withdraw accommodation, even if the balance sheet at that time is large. These tools include a new one, approved by the Congress during the financial crisis, which allows the Federal Reserve to pay banks interest on their reserves. A suite of supporting tools, such as reverse repurchase agreements with a wide range of counterparties and the Term Deposit Facility, are routinely tested to make sure that the Federal Reserve is prepared to use them and that they will work as planned.
This is the new party line - having saved the banks we can now swing back around and fix the labor crisis. All we have to do is keep the banks on life support, make some noise about regulation and continue to stimulate the economy using tools that give our bank masters their cut.
The reality is that the mortgage industry, in its current form, simply no longer serves any purpose. Having too big to fail banks preside over a centrally planned, antiquated, bureaucratic nightmare has become a cause unto itself. This is industry must be shrunk down and automated with new big data technology as much as possible. Because there is no industry here; just an exercise in regulation.
What happened with the financial industry is that when it came time for upper white collar jobs to go the way that so many blue collar jobs had, the bankers instead used their long standing relationship with our government to preserve and even grow their completely fake free market. So instead of our government investing its time and money in expanding research facilities to create new real jobs, we get a procession of backward thinking Fed Chairman - each one more and more out of place in the modern world.
The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act. And a week from Monday, I’ll be releasing a more ambitious deficit plan -- a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run. (Applause.)
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This country is spending trillions propping up dead financial jobs and no one asks that debt be balanced with spending cuts. Meanwhile we can't afford to build transportation or teach kids; just so that real estate agents and loan officers that should have long since gone the way of travel agents and CD stores can keep their jobs. Well maybe if the President finally makes clear, with a nomination of someone living in this century, that white collar phony jobs are not going to be preserved at all costs, then politics in this country can finally
change.