So now the cat's out of the bag and we know that Federal Reserve Vice Chairman Janet Yellen will be the next Fed chief. Overall, this looks like a win for the markets, if for no other reason than it signals continuity in Fed policy going forward (for better or worse). She'll likely toe the Bernanke line, and she won't face the acrimonious nomination procedure that a Larry Summers or Tim Geithner would have. There's the added political bonus that she'll be the first female Fed chief in history. Overall, she checks a lot of boxes. But is she the best choice?
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Fucked.
Paraphrased: "it is time to move away from the conservative role of the Fed to preserve the country from inflation and towards fighting unemployment"
or in other words: "we be printin', you be runnin'"
So glad to be living in Singapore right now. Well, y'all voted for these guys, time to reap what you sowed.
Spot on. I'm jelly, bro.
I view this as more or less inconsequential. If QE proves to be as devestating as the Peter Schiff and Ron Paul acoloytes on this site prophecize it will be (which it has shown no signs of being whatsoever), the damage would have already been done by the c. 3-4 trillion already spent by Big Ben.
Oh yea... Jimmy's got 45k in credit card debt, what's a llittle more gonna hurt?
-Nobody ever
It depends on what the happens to the velocity of money. Does it look like the banks have a liquidity fetish? I will keep you posted if I find more good stats.
Excess Reserves of Depository Institutions (Through 5/1/2013): http://research.stlouisfed.org/fredgraph.png?g=ncM
That's where Schiff & co get it wrong, I think. A lot of what they think and talk about has been priced in, or happens slowly and gradually - more so than investors would be comfortable with.
One place where the US is lucky is not to have a demographic bomb, like many European countries whose welfare class, thanks to generous child benefits, is rapidly expanding and "locking in" politics by sheer numbers. Which was of course the idea.
How is that an analogy? 45k in cc debt is easily repayable. To make it comparable it would be have to be more like Jimmy has 10m in debt, makes 40k year but overspends on a lavish lifestyle. Then he repalces his current financial advisor with someone new with hopes of paying it down.
45k in debt is easily repayable? That probably depends.
Nothing to see here. All the money printers keep telling us that because the shit hasn't hit the fan, it never will. So keep printin', I guess.
I'm not completely against her willingness to trade inflation for jobs if that's the trade off, my worry is people who think these policies have no consequence if we continue doen this path.No better or worse in my mind than cutting taxes indefinitely and expecting higher revenues.
Eddie, she doesn't check the most important box: the best choice would be someone who wants to end QE.
In the event of US debt default, the Fed can save the financial markets by its market-making power in the US debt market. Federal Reserve can purchase in the open market as much US debt as there are sellers at the fair prices that reflect the principal and interest payments. This would be enough to stabilize the financial markets.
Diversity hire.
you had already arrived at that opinion long before she was elected to the position yellen is more than capable of doing the job- no less so than bernanke
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