Washington Examiner: “Federal Reserve Chairwoman Janet Yellen suggested that the central bank might buy more kinds of assets in a future crisis during a speech Friday on the tools available to the Fed to manage the money supply.
In an address prepared for an appearance at an annual conference in Jackson Hole, Wyo., Yellen said that the Fed “may wish to explore the possibility of purchasing a broader range of assets” than it currently does.
Although she didn’t specifically say so, such assets could include stocks rather than the government bonds the Fed currently is limited to.”
Opinion: Mrs. Yellen’s speech on Friday had been the topic of conversation all week in the financial markets. When it finally came, the Fed chief said she might raise rates – but then again she might not.
IT IS DATA DEPENDENT.
Excuse me for raising my voice, but the dear lady has been saying that for years.
The data, or I should say the real data, stinks. Gross Domestic Product is an anemic 1.1%. The economy needs 3% just to keep up with people entering the work force.
Barack Obama is first president ever to not see a single year of 3% GDP growth.
The Fed’s four four stimulus packages purchased government bonds from banks with printed money. Now Mrs. Yellen is suggesting that if the Fed needs to buy assets in the future they may include stocks.
Imagine that. Imagine the Dow Jones averages hitting 25-50-100,000 on monopoly money. Imagine how happy every one will be? Except all it will do is create asset bubbles that will make 2008-9 look like a bull market.
It happened in Zimbabwe in 2006-8 as the annual rate of inflation exceeded 231 million percent and the stock market reached 4 million.
Buffet and Gates will be the first trillionares.
Aren’t you glad you won’t be here to see it?
2 Thess. 4:16-18.