Yellen is clearly a monetary dove. Right now with the US in a liquidity trap continuing the easing will probably continue and not cause excessive harm. However, once things pick up and the velocity of money increases, look out! Once inflation gets rolling it is really hard to stop. Plus the US would be hard pressed to make its debt service if interest rates reverted to the 5 to 6% level that was common in the 1990s. Interest is already 20% of US budget and that's with rates near zero!
I think Yellen will very quickly have a very tough row to hoe.
Topic: Thoughts on the Outlook for Yellen's First Term? (Read 953 times)
Yellen is a joke she is an easy money piece of trash. Cheap money will destroy the world - Marc Faber. Cheap money will destroy the World - Karl Denninger. What right does Yellen have to go into my wallet and take my money out and give it to a rich guy or a bank? That is her policy.
What's with the timing?
Greenspan gets a pretty much 20 year ride of hero worship, and Bernanke can't stomach 5 years? Yellen's confirmed but not sworn in? It looks like the whole basis of this appointment is created for political impact only. Yellen even looks and sounds like a bit of a punchbag. If she's doesn't end up the Fed fall-gal, then I'm worried what the next chairman is going to come across like (and how quickly, shall we give Yellen 18 months, tops?). Who've they got on the next shortlist of one, Ronald McDonald?
Greenspan gets a pretty much 20 year ride of hero worship, and Bernanke can't stomach 5 years? Yellen's confirmed but not sworn in? It looks like the whole basis of this appointment is created for political impact only. Yellen even looks and sounds like a bit of a punchbag. If she's doesn't end up the Fed fall-gal, then I'm worried what the next chairman is going to come across like (and how quickly, shall we give Yellen 18 months, tops?). Who've they got on the next shortlist of one, Ronald McDonald?
Forecast for the future. Print Print Print Print and then print some more.
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It would not be a difficult task for a 2nd year Economics student to slow the taper at a rate that the market tolerates while unwinding the assets that have been purchased over a reasonable term at a reasonable profit. Quite honestly, Yellen could turn down a second term and easily be in position to be remembered as one of the greatest chairpersons in the history of the Federal Reserve.
Hyperbole aside, she could easily squander this low-hanging fruit if she chooses the wrong trajectory or gets distracted by politicians. At this point, the American economy needs to keep its eye on solid economic theory rather than the desires of polarized politicians. Let’s hope Janet Yellen is up to the task.
Hyperbole aside, she could easily squander this low-hanging fruit if she chooses the wrong trajectory or gets distracted by politicians. At this point, the American economy needs to keep its eye on solid economic theory rather than the desires of polarized politicians. Let’s hope Janet Yellen is up to the task.
I hope you are right, but I extremely doubt it. She probably will (has to) print more money than Greenspan and Bernanke together
I think that she couldn't have it any easier, to be honest.
I wrote a blog with my point of view: http://jbits.tk/?p=30
Post your thoughts here, and I would be very grateful for comments on the blog as well.
I wrote a blog with my point of view: http://jbits.tk/?p=30
Post your thoughts here, and I would be very grateful for comments on the blog as well.
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