Former Fed Governor Mishkin: Don't Kid Yourself, The Fed Might Not Raise Rates For Years

CNBC Video: Solid discussion with former Federal Reserve Governor Frederic Mishkin and Byron Wein from this morning's Squawk Box.  The clip improves after the 3-minute mark.

• "We're going to have a tremendous amount of slack in the economy for quite a number of years.  If there's still a lot of slack there's no reason to raise rates.  In fact, it would be a big mistake."

On Japan's error:

• "They were so anxious to normalize and get rates positive that they raised them in early 2000 and it was a huge mistake and actually led to continuing deflation in Japan.  The Federal Reserve is not going to make that kind of mistake."

On the Federal Reserve's balance sheet:

• "That's very dangerous and is NOT the appropriate thing for the Fed to do in the long run."

• "The need to get rid of their $1.25 trillion in MBS securities."

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[DailyBail]

http://www.youtube.com/watch?v=KNKHnVjIJM8&feature=player_embedded

[DailyBail]

http://dailybail.com/home/bailout-news-music-video-fk-the-fed.html

[DailyBail]

Interview with Lloyd Blankfein CEO of Goldman
http://online.wsj.com/article/SB10001424052748703746604574460971679111660.html

[DailyBail]

Guess who will be there to bail them out?
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/10/AR2009101002360.html?nav=hcmodule

The financial crisis has blown a hole in the rosy forecasts of pension funds that cover teachers, police officers and other government employees, casting into doubt as never before whether these public systems will be able to keep their promises to future generations of retirees.

[DailyBail]

http://www.washingtonpost.com/wp-srv/business/crisistimeline/index.html

Phenomenal resource on the crisis...check it out...

[Sell Short]

Daily Bail,
are you going to have a DOW 10K party here? get your DOW 10K party hats and lets celebrate!! Lets get drunk and buy stocks. Tomorrow more earnings are com9ing out which means more rally in the markets. That should be the number one headline when people get home tonight. DOW 10K. New Bull market. Cramer saying BUY BUY BUY!

LOL!!

[James H]

Lets get drunk and buy stocks.

Isn't that how it's done?

[James Street]

Economists have become politicians. I had always hoped the reverse would be true.
Ethics has disappeared and while disappearing, has transformed itself into Big Time TV Political Correctness Wrestling.
Notice how the Governor blinked when the pretty moderator called him professor instead of governor, which is a huge demotion in the United States. Which reflects our American obsession with power (money.)
He doesn't know anything more than the rest of us but his confusion is much more complicated than ours.
Read economic history. It gives you the illusion that you are predicting the future even when it's very, very difficult to do.
Or, get used to living in the present and near future which is also very, very difficult to predict unless we try to make it into something which most of us want it to become. Then it becomes a political struggle.

[Stanley Rozewski]

From above.......Oct2009......The financial crisis has blown a hole in the rosy forecasts of pension funds that cover teachers, police officers and other government employees, casting into doubt as never before whether these public systems will be able to keep their promises to future generations of retirees. It is now Feb 28, 2011. We have the support of the teachers, police officers, and govt employees, for it is ABSOLUTELY GUARANTEED those funds will never be there, and when retirement arrives, soon, those retirees will rebel (just like Egypt, and Libya) when they find the Federal Reserve have screwed them, and all the money is gone. Thanks for keeping those 2009 clips for now we can see how "way off base" were the predictions of the "professors" and how they screwed the entire workforce of the USA and other countries.