How will the markets greet Yellen?Submitted by Michael Nystrom on Wed, 10/09/2013 - 02:10
It's 1:35 in the morning, and I should be sleeping, but I'm thinking that tomorrow is a big day. Tomorrow is Janet Yellen's debut before the Markets.
One thing we know about Markets is that they like to buy the rumor, and sell the news.
In the meanwhile, I'm reminded of this quote on the nature of the Fed, from my previous site Bull! Not bull.
I am fascinated by the common perception that the Federal Reserve is a proven non-stop inflation machine. Inherently, the Federal Reserve uses inflation and deflation to whipsaw the average bystander out of their savings. I don't see how one economic machination is more favored over the other when the goal is to ensure that the public's savings ends up in the accounts of the shareholders of the Federal Reserve System.
Whatever we're in for - and doesn't it just feel like we're in for something big? Here is the debut of the woman who is going to be at the head of that ship of the Fed, which from all accounts looks like the Titanic headed for an ice berg in the middle of a raging, dark, nasty storm. This is Captain Yellen, Starship Federal Reserve. This is Prisoner Yellen. Prisoner of the System...
I'm just up late thinking, but I've got to go to bed. Leaving back to Taiwan soon.
For the Fed, this is not only a changing of the guard, but we enter a period wherein the public gets to know a new Puppet. It is a time that is fraught with danger, as the Puppet is new, and the masses might catch a whiff of something...untoward. The handoff has to go perfectly.
So much drama plays out in the market every day. Everything is connected, and Janet is a giant cog in the workings.