Fed Up with the Federal Reserve

Featuring Danielle DiMartino Booth

Former Fed insider Danielle DiMartino Booth lifts the lid on the complacency during the housing bubble and the crisis years that followed, resulting in the economic damage we are left with today. In her new book ‘Fed Up’, Danielle reveals the inner workings of an institution that few fully understand and in this interview she outlines the extent of the corner that it’s now backed into. Filmed on February 10, 2017 in Austin.

Published on
15 February, 2017
Topic
Monetary policy, US Economy
Duration
37 minutes
Asset class
Bonds/Rates/Credit, Equities
Rating
22

Comments

  • JS

    John S.

    17 8 2017 00:40

    0       0

    She was wonderful

  • DD

    Derek D.

    2 4 2017 15:29

    1       1

    Why not just abolish the whole damn Gosplan counterfeiting operation and stop robbing the taxpayer through inflation of fiat toilet paper garbage? God bless her, but more Fed regulators. There had better be an ending of the Fed. Oh yes we can. There can be no reforming of this monster.

  • IF

    Ian F.

    17 3 2017 17:47

    1       2

    I just finished the book and thought it very entertaining. I also do feel open criticism of the dysfunction at the Fed is constructive in this context, even through the lens of a Fed supporter. However it shouldn’t be overlooked that (while quite lovable) she is just as ideologically blind as the PHD economists she abhors. Any claim that Fed policy has created destructive distortions when compared to the alternative is just pure conjecture. As someone who would have been economically and financially immune to the Fed policies she prescribes, I think the forgotten man outside of Wall Street thanks God she wasn’t in charge of those decisions. Please spend some time in the real private “goods producing” non-financial sector, lest we associate you in the same class as those head in the cloud PHDs.

  • MS

    Martin S.

    9 3 2017 09:10

    0       0

    A little bit too theatrical for my taste, but the book will be sure worth a read

  • M

    Mark .

    28 2 2017 11:53

    1       0

    Really good. All Fed apologists deserve severe contempt for one reason or another. All of them. What does civility get you with this stuff? There is going to be so much suffering.

  • EG

    Erik G.

    26 2 2017 20:07

    1       1

    Buying the book right now.

  • DH

    Dominic H.

    21 2 2017 05:36

    6       0

    To quote Robert Skidelsky:
    "Most economics students are not required to study psychology, philosophy, history, or politics. They are spoon-fed models of the economy, based on unreal assumptions, and tested on their competence in solving mathematical equations. They are never given the mental tools to grasp the whole picture."

  • TS

    Thomas S.

    21 2 2017 02:00

    1       3

    Bravo! Most important financial book of our time

  • WS

    Wes S.

    20 2 2017 23:51

    3       0

    The dual mandate is an excuse for the effort by the PHD's at the Fed to attempt to avoid the necessary Creative Destruction required to take some short term pain to get the economy growing again and allow a vibrant economic rebound. This is the lesson learned and the lesson, presumably, written about in the book. And, it is just as much, or more, about maintaining the large financial and other corporate institutions than it is about the unemployment rate.

  • WJ

    Wells J.

    20 2 2017 22:54

    0       1

    PLEASE BE SURE AND SEND THE RIGHT NUMBER OF THE BOOK TO THE TRUMP ADMINISTRATION AND FOX NEWS.
    I BELIEVE THE STARS ARE LINING UP THAT WOULD ALLOW SOME TIMELY CHANGE! !
    Wells

  • KS

    K S.

    20 2 2017 21:16

    3       1

    I admire all the work she is doing to educate on Fed. Just can't ignore the fact that she and her mentor Dr. Fisher were part of the very Fed for a long time leading to this mess. Fisher actually voted for QE /low interest rate mess. Again, I understand she wants to enlighten and means well but was part of that very system without making any difference.

  • JH

    Joseph H.

    20 2 2017 17:18

    0       0

    'Arsonist and fireman'. The cycle never ends. Let the forest burn down. Sustainable growth will emerge. Mess with the natural order and you get constant disorder.

  • CB

    Cliff B.

    20 2 2017 14:35

    1       1

    Superb, so much great information, so intellectually stimulating, so disconcerting the consequences of getting this function wrong

  • JH

    Jesse H.

    19 2 2017 18:30

    0       1

    Massive respect and kudos to DiMartino-Booth for her courage, wits and personal strength to tell it like it is. The larger implications for how economists are educated are both troubling and fascinating to me.

  • KS

    Kim S.

    19 2 2017 15:03

    3       1

    Finished the book quickly. Although my personal view is still to "end the fed" as no committee of people can truly manage the economy, I appreciated the insight in this book. Sadly, it only reinforces my concern that our current financial situation will not end well. I expect the usual players will describe DeMartino-Booth as disgruntled.

  • SS

    Sam S.

    18 2 2017 18:17

    8       2

    Grant--my previous D Booth comments taken down, but I agree with Paul F---same kind of thing. Check comments, not from me, on Weldon too. The attraction is her gift, courage, compassion and so much more. Disturbing she's would be in fear for her life----freedom of speech and opinion is under attack in our great nation. The news media is after Trump because their ratings have plunged and they've got to prove they were right about Trump at all costs. It's going to be their downfall. The FED knew in 2007 but did nothing--WTF---but we heard Trader Vic say the same. The FED and bankers keep it so complex that most people can't and won't uncover to express the truth. Trump got elected saying he was going to change how Washington works and the people agreed. Well, the FED must change too and I agree with her proposal to do so. As a business owner, I'll take passion, energy and desire over book learning PHD smarts all day every day-----education is same old rhetoric. Real world on the street in the trenches experience, educates on how people think and act---that's a true education. When we get out of school and find out everything we've learned doesn't quite work in life as you were taught. Deepest of thanks to Mrs Booth for her courage of conviction. The false confidence game is ending all over the world. All the best!

  • GO

    Glenn O.

    18 2 2017 05:47

    5       1

    What a refressing interview. Let's hope people in Washington read her book, ps I am not holding my breath

  • RA

    Robert A.

    17 2 2017 23:52

    3       1

    Ordered my copy on Vallentine's day and am tucking into it now. I have just ordered 3 more copies for my "Macro Buddies". Well down Grant and one of the absolute best RV's to date (I have watched them all). No matter where Danielle takes us, at least the discussion has started!

  • RP

    Ron P.

    17 2 2017 21:12

    4       0

    Supply and promote the velocity of this money at all cost to preserve the peace. We need a new technology like extracting energy from gravity for free to get us out of this one. Maybe the government w

  • RP

    Ron P.

    17 2 2017 21:09

    7       0

    I believe that most people do not understand the real purpose of the FED. It is a single unspoken mandate. To keep people off the streets rioting for food basically.... They will expand the money sup

  • MH

    Martin H.

    17 2 2017 16:24

    7       2

    Really enjoyed the previous interview she did, so I was excited about this one. Unfortunately, I found it extremely disappointing. A lot of self righteousness, very little substance. Grant seemed to focus more on how brave she is for writing the book, rather than asking critical questions. Pure promotion. (Note: I would abolish all central banks given the chance, so it's not that I see these people as heroes.)

  • GS

    Georgi S.

    17 2 2017 09:06

    1       0

    This article by a former member of the Federal Reserve Board is a great addition to this interview. It offers great actionable insights for reforming (not abolishing) the Fed. https://www.wsj.com/articles/america-needs-a-steady-strategic-fed-1485821476

  • AE

    Alex E.

    17 2 2017 05:35

    1       2

    Hello, Mrs. DMB, ordered my copy of your book today. This may sound like hyperbole, but I believe that you are an American National Treasure and that if President Trump had a lick of sense in him, this woman would be one of the nominees for the FED, that is, if she wanted the job :)

  • KS

    Kathleen S.

    17 2 2017 04:02

    9       0

    I agree with everything she says, but I must scream why is the FED allowed to do what it does - it is not to help the average person and this needs to be made public - Central banks must be eliminated and when the next crisis happens the only clean balance sheet to clean up the mess will be the IMF ( a balance sheet and a system that makes money out of thin air) we need to get rid of Central banking and to take the economy back into reality. Finalization is nothing but fraud and this has been going on since the 1970's and the game is becoming so crazy and going to such extremes is INSANE. Problem is most financial people will not want to give up their ill gotten gains -- own gold my friend or you are going to get screwed. Without gold as a basis you know the price of nothing and since the amount of money has been printed to infinity then Common Sense tells me gold is going to go bonkers. COMMON SENSE

  • T~

    Tshort63 ~.

    17 2 2017 01:22

    6       2

    Putting Danielle DiMartino on the list of people I'd love to spend an hour with over lunch. The list is getting long with so many great thinkers. Jim Grant, Rick Rule, Drs. Malgrem, etc. Grateful for these interviews!

  • T~

    Tshort63 ~.

    17 2 2017 01:10

    7       2

    OK @realvision, given the 8 thumbs down who amongst the FED is a subscriber? ;-)

  • SB

    Stewart B.

    16 2 2017 21:32

    1       1

    I just checked and 'Fed Up' is also available on Audible too. Loved the interview.

  • SB

    Stewart B.

    16 2 2017 21:05

    2       1

    I can't wait to read the book. Grant - you ask the best questions!

  • AH

    Andreas H.

    16 2 2017 20:16

    1       15

    1) Not all PHDs are stupid (I got one :-))). 2) 99% of people do not know how CBs are producing money (that is what PHDs usually do not know) still people believe in fiat money as a store of value, so they can be as Hybris as it wants to be as long we do not get hyperinflations, people will believe in fiat money. 3) That what CBs are counting on and how they control the masses. 4)CBs staff earn their money sleeping, that puts complacency into it. 5)Interest rates can be low because there is not enough demand driving inflation due to a middle class that has been robbed its productivity gains of companies since the 70s. CBs just did what they needed to do to work against that. Trump now changes this and the fed can normalise rates step by step. From my point of view CBs are heros that put at least some (cheap) money at the right time into pockets of the middle class (2008 crash happened because FED did increase Rates to too high levels and produced and inverse rate curve, that killed also 2000 the market). 6) From trading perspective just do not be ideologic and ride CBs low interest rates and Trumps policies and be long stocks.

  • PD

    Philip D.

    16 2 2017 14:34

    2       0

    Monetary Myopia...isn't that the case in every large financial institution too. Having worked in one I can confidently say it's a case of the blind leading the blind. Observe this over and over again!

  • SR

    Steve R.

    16 2 2017 09:24

    0       13

    How about a little competition RV? How about setting up a competition where the prize(s) is a copy of the new book? Something along the lines of 'where will the S&P end on a given date?' where the nearest 5 entries receive a copy of the new book? You could do this for other published books too? Just a suggestion :-)

  • MS

    Michiel S.

    16 2 2017 04:39

    3       6

    As Milton would say in the early days of RealVison: The truth hurts! Grantastic and Grant, the way she was looking at you.....................................:-)

  • JC

    Joe C.

    16 2 2017 04:22

    8       1

    She has such a flair for language. I'm buying her book right now.

  • MZ

    M Z.

    16 2 2017 02:31

    11       1

    I want to give this interview a Double-Thumbs Up! A single mandate Fed is worth exploring and I hear Grant's precautions but since Dallas Fed Fisher won't write a book and all we get from the others is Keynesian-ism - Danielle has given us an insider view that will say "Hey Dummy! Its the debt! (pension and otherwise). I understand critics of the Austrian view, but hey since its all theory anyway and the current "theory" is about to go Neil Diamond's "Love on the rocks" ....

  • MZ

    M Z.

    16 2 2017 02:15

    14       1

    Thank you Danielle and Grant - "Seasonally adjust this!" Lol.... "you are what you produce" - Thank You DDB for all your hard work and being yourself! Amazing how our humble, hard-working mom's can produce children with real drive and purpose. Congrats on the book! History will remember you favorably... I know I will
    I wish for a round table discussion of the "Montpelier Ladies of RVTV" (my label), to include Danielle with Pippa, Stephanie, Maleeha, Juliette, Merryn(?), Constance, and Elle our primary Montpelier Lady - what a round table free flowing discussion these smart ladies could produce. Or does the world monetary system just simply need to go thru a "Reset?" Central banking reformation would be akin to a leopard changing its spots to tiger stripes.... "a plebeian in Dallas" Wow! Do we ever need to define the "establishment" so average people understand how the "narrative" shapes opinion in our day....

  • JS

    Jon S.

    16 2 2017 02:07

    6       1

    Great interview. Both of you use such colorful cliches in your speaking and writing. However, I think Grant has met his match by the Queen of cliches.

  • pf

    paul f.

    16 2 2017 00:56

    5       3

    What an interview ! What a person she is.. Thanks to you Grant; I am jealous of her husband.

  • NH

    Neil H.

    16 2 2017 00:48

    6       2

    One of the best videos yet. Was like a good book I could not put down. Kudos to Danielle for writing this book.

  • GH

    Grant H.

    15 2 2017 22:50

    8       1

    This was great, I was on the path to be an economist studying post graduate economics, and her commits are why I dropped out. The economist profession is broken and they actually believe in what they are doing.

  • fc

    frank c.

    15 2 2017 20:01

    12       2

    will buy the book. I don't want to sound idiotic here but don't we know all this already? we all know this Fed is an incompetent la la land organisation that does incomprehensible things...but I believe there is a purpose to this....a sinister one.

  • TW

    Tom W.

    15 2 2017 19:45

    8       2

    Excellent interview and congrats to Danielle for a successful book launch! Now the hard work begins for concerned parties to bring forth the political and other changes to fix the Fed.

  • JH

    Jacqueline H.

    15 2 2017 19:38

    11       2

    Terrific interview, again. Sincerely hoping that Sec. Mnuchin and Pres. Trump are reading this book!

  • BK

    Brian K.

    15 2 2017 18:56

    15       1

    Just bought the book. Another great RVTV interview from Danielle and Grant, as usual.

  • B

    Bojo .

    15 2 2017 18:40

    13       1

    Excellent! Danielle seems very genuine. And at this point truth should be more important than positivity. But still, for majority, reality will probably be delivered by mother nature, not people.

  • BF

    Bruce F.

    15 2 2017 18:25

    7       1

    fabulous interview. book incredible. read it on flight the day it came out. unique in that ss well written as iit is har hitting. a must read for everyone in business

  • EK

    Emil K.

    15 2 2017 18:10

    29       1

    My personal daydream: D. Trump nominates Danielle D. Booth, James Grant, and Jeffrey P. Snider to fill the vacancies at the Federal Reserve. Sigh. If only he would. Oh the fireworks. Glorious. (And in all seriousness, the institution would be better for it.)

  • RM

    Richard M.

    15 2 2017 18:08

    12       2

    Great interview (very informative and funny too)! I've really enjoyed Danielle's weekly email missives, and I am really looking forward to reading her book (and getting a real insider's view of the FED and it's disfunctional players and actions).

  • PW

    Phil W.

    15 2 2017 17:16

    9       1

    Yes! Should be a great read

  • LA

    Linda A.

    15 2 2017 16:46

    13       52

    Dumbing it down by using layman terms does not change the fact that the book seems hypocritical & opportunistic. If she was truly morally offended by her former employer, why did serve for almost a decade without objection to these allegedly improper practices?

  • JH

    Joe H.

    15 2 2017 16:18

    9       1

    Looking forward to reading the book.