Thursday, November 14, 2013

Obama and Yellen Randomosity

  • image Today we had the two most powerful people in the world speak:  Janet Yellen and Barack Obama.  In that order.  Neither pictured, by the way.  Oh, I realize Bernanke is still officially the most powerful person.  But isn’t he a lame duck Fed chairman?
  • Yellen basically said, and I’m paraphrasing, that she was going to make it rain money because unemployment is too high and growth isn’t as high as we’d like to see it.  All the time, of course, the Fed was keeping an eye out for problems.
  • (And once the problems occur, add in a year or so later, the Fed will actually realize what the problems were).
  • The stock market seemed to like this.  After all, all that money has to go somewhere and it may as well buy shares of TWTR.  Which was up today, by the way.
  • Emerging markets really liked this.  After all, if the Fed is inflating the dollar’s value away, this is good for foreign denominated assets, right?
  • Meanwhile, President Obama spoke about how unaffordable the Affordable Care Act, er Obamacare, was and that if you want your old insurance plan back, you can have your old insurance plan back.  For a year.  Assuming the insurance company will follow Obama’s directive.  And then have to reissue cancellation notices next year.  Postmarked after the 2014 election, right?
  • I remain in cash.  On the sidelines.  Watching and waiting.  Sitting on my hands.  Watching the grass grow.  Not that kind of grass.
  • So that’s what TV was like today.
  • I thought Yellen answered the questions well, without actually answering the questions.  That’s the third mandate of the Fed. 
  • I thought Obama looked beaten up a little.  I’m not sure if he solved anything today.  I think he just made it more complicated.  But, that’s the nature of government programs.

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