Apparently, Janet Yellen, Joe Biden’s treasury secretary, is a real piece of work. You probably know her as an individual who has had some extremely controversial Wall Street connections that arose during the Robinhood trading scandal earlier last year. However, she just made the headlines again, and not in a good way. Just to sum it up, with just one sentence, she has sent the economic markets into a total free-fall.
That’s right. All it took was just one sentence for Janet Yellen to send both the NASDAQ Composite crashing down a 2.8% avalanche, and that was followed by the S&P500 crashing down at a 1.36% loss. Finally, the Dow dropped down an astonishing .7% of its gigantic value, and this cost investors billions in their investment revenue. Yellen’s greatest skill is not in helping the economy, but in making it crash? Who would have thought?
One of the things that precipitated this was when Secretary Yellen was speaking to the Future Economy Summit that the group The Atlantic was putting on. The first thing she said that sent the markets into a death spiral was when she called for a “reallocation of resources” toward President Biden’s $1.9 Trillion spending spree.
Next, she said that “it could be that interest rates might need to rise just a bit in order to make sure that our economy doesn’t overheat.” Well, that’s all well and good, but then she claimed that her remarks were justified simply because she believes the additional spending would be “relatively small compared to the immense size of our economy.”
Later on, Yellen characterized the tax-and-spend policies of President Biden as “investments”. Yeah, she went there. Meanwhile, all around my current hometown of Amarillo, TX, there are “help wanted” signs everywhere. These “investments” are just encouraging people to sit at home on the couch!
“This is a $1.9 trillion package, and we got to that number simply by adding up all of the things that we think we need to do in order to provide relief to those who had government shortfalls, to help homeowners, to help with childcare and child credits, to assist with renters that might be going through a stressful eviction process. We have both a short-term plan and a long-term plan,” she said.
It didn’t take long for Yellen’s comments to the Atlantic to be publicized, and even she began to notice the tremendous damage she was doing to the markets. Viola! Commence the liberal backpedaling! She immediately commented with this gem:
“A rise in interest rates is not something I’m recommending or predicting,” she said to the Wall Street Journal.
As Yellen’s comments to The Atlantic were publicized and reported on the damage to the market began to spread. The Secretary of the Treasury immediately sought to backpedal. Yellen spoke to the Wall Street Journal claiming about an increase in interest rates “that’s not something I’m predicting or recommending.” Good for her for saying this because now the DOW is starting to creep back into the positives. However, the other markets are still suffering.
What do you think about this example of inept leadership in the Biden Administration? Your comments are appreciated!