Janet Yellen, has assured the drug addicts i.e. the Q.E fix loving market that she will continue to provide their favorite drug. She has left everything else hazy as to when or how fast she will remove the drug or what her variables are for removing this drug and what will take to increase the quantity of the drug, though she has touched some aspects of this in her question answer session.She certainly cannot say "QE has been a miserable failure... We should have NEVER gone down that path... The trillions we have printed have had NO material effect on job creation" Happily the users will only hear what they want to and started this rally in the market. What are the reasons or what made this market go up 100 plus points on the DIJA, only the user knows. But then like all drug addicts, logic or knowledge does not work or have any effect on them.This is a rally fueled by some more printing of notes and not due to an improved economy but the thought that the economy will improve etc.This is the scary part, all it will take is another bad job report or some more bad indicators which can actually say that the economy is not improving.And send the market crashing down faster than it rose.
Then reversal of the QE tapering or other means will not have much of an effect. The market should learn to stand on its own two feet and not depend on this drug for long, the sooner it gets into a rehab the better. The earnings season next quarter could be a mourning one.
Does she have something for the submerging markets, well NO. She has said in no uncertain terms she will do what it takes to safe guard US interests and has little regard to how it can effect others.
Finally did Janet Yellen say something of substance, the answer to that is very clear NO.It was just another re write of a Bernanke submission to the congress.
Then reversal of the QE tapering or other means will not have much of an effect. The market should learn to stand on its own two feet and not depend on this drug for long, the sooner it gets into a rehab the better. The earnings season next quarter could be a mourning one.
Does she have something for the submerging markets, well NO. She has said in no uncertain terms she will do what it takes to safe guard US interests and has little regard to how it can effect others.
Finally did Janet Yellen say something of substance, the answer to that is very clear NO.It was just another re write of a Bernanke submission to the congress.