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Annaly CEO: Central Bankers Are Witch Doctors, Demands "Return To Market-Driven Pricing"

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

The story of bloodletting is intertwined in the mysterious fabric of medical lore; it originated from magic and religious ceremonies. The physician and priest were one and the same since disease was thought to be caused by supernatural causes. Witch doctors and sorcerers were called on to drive out the evil spirits and demons. Bloodletting was a method for cleansing the body of ill-defined impurities and excess fluid. The early instruments included thorns, pointed sticks and bones, sharp pieces of flint or shell, and even sharply pointed shark’s teeth. Miniature bow and arrow devices for bloodletting have been found in South America and New Guinea. A small bloodletting instrument resembling a crossbow was once used in Greece and Malta. Wall paintings dating from 1400 B.C. depict the use of leeches for drawing blood from human beings.

 

– From a PBS article: A Brief History of Blood-Letting

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On a conference call today to discuss the mortgage-investment firm’s earnings, the chief executive officer talked about “blood-letting,” a “popular prescription for many ills” until the late 1800s, and the similarly abandoned view that life could be created by spontaneous generation to explain her “healthy dose of concern” over the potential results of all the stimulus.

 

“My hope is that as policy makers of the world continue to prescribe their remedies for the ailing economic patient, that they do not render it worse off,” she said. “As with their predecessors, I suspect there is no doubt in the minds of our central bankers that they are the smartest they’ve ever been. Yet, I fear they are not the smartest they will ever be.”

 

– From the Bloomberg article: Annaly’s CEO Sees Central Bankers as Possible Blood-Letters

One of my greatest frustrations during the post-financial crisis period has been the unwillingness of the rich and powerful to call out central banking for what it is: financial slavery. While I accept that many are simply ignorant or brainwashed, there are plenty who know exactly what’s going on and are merely trying to make as much money as possible from the Federal Reserve created scam before the music stops. For those with influence in society, this is a highly unethical choice.

I have to give credit to Annaly CEO, Wellington J. Denahan, for her harsh, and in my opinion accurate, criticism of central bankers. Bloomberg reports that:

(Bloomberg) — Annaly Capital Management Inc.’s Wellington J. Denahan said she thinks central banks’ efforts to revitalize their economies may one day be seen as the 21st-century equivalent of the medical belief in the benefits of bleeding patients.

 

On a conference call today to discuss the mortgage-investment firm’s earnings, the chief executive officer talked about “blood-letting,” a “popular prescription for many ills” until the late 1800s, and the similarly abandoned view that life could be created by spontaneous generation to explain her “healthy dose of concern” over the potential results of all the stimulus.

 

“My hope is that as policy makers of the world continue to prescribe their remedies for the ailing economic patient, that they do not render it worse off,” she said. “As with their predecessors, I suspect there is no doubt in the minds of our central bankers that they are the smartest they’ve ever been. Yet, I fear they are not the smartest they will ever be.”

 

While her remarks were meant to illustrate “how history is littered with longstanding theories and beliefs that ultimately prove incorrect,” Denahan isn’t the only financial CEO to offer comments about central bankers referencing blood-letters.

 

“Much like Theodoric of York, the medieval barber on ‘Saturday Night Live’ whose solution to every health problem was more bloodletting, central bankers continue to force liquidity in the banking system without any objective proof that it is helping,” Alleghany Corp.’s Weston Hicks said in a 2013 letter to the New York-based insurer’s shareholders, referring to a Steve Martin character on the television show.

 

“As we have stated many times before we welcome the return of normalcy to the markets,” Keyes said. “This includes the return of market-driven pricing and volatility.” 

Well said.

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For related articles, see:

Matt Stoller Destroys Timothy Geithner in His Epic Review of “Stress Test”

Tim Geithner Admits “Too Big To Fail” Hasn’t Gone Anywhere (and that’s the way he likes it)

Video of the Day – Elizabeth Warren Torches Janet Yellen on TBTF

Video of the Day – “End the Fed” Rallies are Exploding Throughout Germany

New Survey: Federal Reserve Employees are “Demoralized,” “Distrustful” and “Afraid to Speak Out”