Janet Yellen has proven to be just another member of the financial ruling elite

[Unknown Beatle]

Janet Yellen Should Stop Telling the Economically Exploited to Save Money They Don't Have

<Snip>

According to the Associated Press (AP), Yellen believes the best approach to address the economic challenges faced by income inequality is to encourage people who are struggling to survive to save more money:

The Great Recession showed that a large number of American families are "extraordinarily vulnerable" to financial setbacks because they have few assets to fall back on, Federal Reserve Chair Janet Yellen said Thursday

Yellen said a Fed survey found that an unexpected expense of just $400 would force the majority of American families to borrow money, sell something or simply not pay.

"The financial crisis and the Great Recession demonstrated, in a dramatic and unmistakable manner, how extraordinarily vulnerable are the large share of American families with few assets to fall back on," Yellen said in a Washington speech.

She said the bottom fifth of households by income - about 25 million households - had median net worth in 2013 of just $6,400, and many of these families had nothing saved or negative net worth, meaning their debts were greater than their assets.

<Snip>

More @ Buzzflash

[valerief]

1. If you don't have enough food, save more food. If you don't have enough

soap, save more soap. If you don't have enough mittens, save more mittens.

Yeah, makes sense--nonsense.

[VanillaRhapsody]

2. Perhaps she is talking about doing something ABOUT that?

I fail to see what the hair on fire is about here.....

You have a problem with even saying that Americans do not have enough savings? Looks to me like she is just stating fact.....I fail to see how she is making the claim YOU are...

[Unknown Beatle]

7. Did you read the article?

The last two paragraphs.

However, Yellen isn't proposing steps to reverse the flow of dollars to the wealthiest who need them the least. She isn't offering steps toward easing the economic injustice. She isn't considering, it appears, systemic reform.

She's just reinforcing the current unfair economic structure. Yellen is telling those who aren't in the top one percent or ten percent to save money that's been taken from them in the greatest redistribution of money to the wealthy that the world has ever known.

[VanillaRhapsody]

8. thats analysis not ms Yellen saying that.

Nice try.....lets condemn her for speaking the truth. Just more hatred of Democrats on DU.

[1StrongBlackMan]

9. And more ...

the analysis is of a single paragraph in a better than 1 hour speech.

But even more, the analysis seems in conflict with everything that Yellen has said during, and before, her appointment. Yellen is all about putting money in the hands of the working classes; but, there are few tools for the Fed to do that.

Maybe, folks should google "monetary policy versus fiscal policy" or read the transcript before accepting a "Truth-Out" OP, as gospel.

[VanillaRhapsody]

14. still doesnt make it a fact

Its analysis and projection. She said nothing of the kind. This is just more DU Democratic witch hunting. I am unimpressed

[Unknown Beatle]

15. Nice try.

Falling back on the "Hatred of Democrats on DU" line, instead of honest to goodness civil discourse. I'm not the only one that feels this way about Yellen.

http://www.democraticunderground.com/10025560404

[VanillaRhapsody]

16. Nothing try about it....IT exists.....

and Ms Yellen did not say anything of the sort.....she just stated the obvious....

[pnwmom]

18. Did you pay attention to what she actually did today? She did it because of her concern

about those people and the economy.

[1StrongBlackMan]

3. Posted to for later reading. eom.

[geek tragedy]

4. Seems she's talking about economic insecurity

and inequality.

And, by definition, the FRB head is the most elite of the financial elite.

[Marr]

5. This seems an unfair characterization to me.

The actual quotes from Yellen were only her describing the financial reality right now. People have no money. That's true-- and not always recognized or admitted to.

I don't see any admonishments from Yellen that people need to save more.

[hfojvt]

6. Yellen never said "the best way"

So why take what is good advice - save some money for your own security, and make it sound like that is terrible? What is the point of that?

I am surprised that the median for the bottom quintile is $6,400, especially since I think something like 40% of American households have a net worth of less than $5,000.

And "a majority of Americans" cannot handle an unexpected $400 expense? That's just astounding. I mean, half of all households make more than $1,000 a week and they don't have $1,000 in savings? I make about $300 a week and I could laugh at a $400 expense. Not that I would think it is funny, but I can easily handle it.

[LittleBlue]

10. If she wasn't an elitist tool, she would never have been appointed. nt

[Nye Bevan]

11. What's the line in the speech where she "tells people to save money they don't have"?

When I read the actual speech what I see her saying is that she is concerned about people who have limited or no savings and wants to address this problem.

[librechik]

12. don't rock the Titanic n/t

[snooper2]

13. truthout fail again

[pnwmom]

17. She's not lecturing to people. She's pointing out how vulnerable people still are

because of the economy.