The Former Chairman of the Atlanta Fed, Dorothy Weaver, is a dove. However, even though she believes the Fed shouldn’t hike rates–her arrogance and disconnect with the markets leads her to believe Yellen did the right thing by not communicating with the market.
Weaver said:
“No way they’re gonna be signaling what happens in March. Why do we think there’s gonna be this ultimate clarity?”
There you have it folks. The reason why Bernanke worked and Wall Street trusted him is because he communicated with the market. He didn’t speak in riddles and cruelly allow the market to suffer during malevolent draw-downs, when he could help reverse it. Unlike Yellen, Bernanke was concerned with wealth creation/destruction and saw capital markets for what they truly are: the last great bastion of hope and prosperity for millions of Americans.
This Fed simply doesn’t care. Therefore, you get this.
Have you seen/heard of this: “Money for Nothing.Inside the Federal Reserve”
https://www.youtube.com/watch?v=B_Q6LazNIiA
Seems to spell out disaster. As if this next dip will be the end of the biggest, longest bubble in history.
When will the public and media know we are in a bear market.
t o o l a t e
I am becoming more convinced they want a global meltdown.
“saw capital markets for what they truly are: the last great bastion of hope and prosperity for millions of Americans.” If you mean that in the sense of job creation and wage growth, I would agree. If you mean that everybody is going to get rich from stocks in their 401k and the like, I could not disagree more. Stocks have always entailed risk beyond what the typical person is willing to stomach. If they actually represented an ownership interest in the company, perhaps it would be different. But they do not; in bankruptcy, stock certificates are worthless.