Well I can say this much for Janet Yellen, she sure learned how to jawbone the market, a skill that was notably lacking in her predecessor Ben Bernancke.
On Wednesday the market gapped open, only to follow a recent pattern of the gap gains eroding. But then Janet stepped in.
In a speech to the Economic club of New York, Yellen acknowledged that while the economy has made some strides towards recovery the jobs market is at least, if not more than, two years away from healing.
That means that stock market types, whatever else may be happening on Main Street, can count on cheap money for Wall Street a lot longer than they had anticipated.
And a wonderful rally began to take shape.
So I'm wondering why the markets just don't trot Calamity Janet out every day at 10:32 AM Eastern time, so that she can add her vocal support to the voodoo the Fed do so well-- not including of course, those five or six or seven times that the market crashes and panics ensue.
And there's the rub, I guess.
For a half a minute or more I thought perhaps I had the key to all of us retiring with $7 billion IRA portfolio, so we could all have our own bed-and-breakfast, or surf in Maui, or do all the others self-indulgent things that Boomers want to do.
Don't get me wrong: I'm all for a well-deserved retirement. If you're a Washington politician or bureaucrat, in fact, I'd be all for you retiring now, regardless of age. If firing Sebelius improved Obamacare, I have a whole bunch of additional suggestions on improving the government.
But how about the working folks who are retired now? What about their plight?
The charts below will give you some indication of what I’m taking about:
What’s wrong with this picture?
Everything seems wonderful, until we enter those years of extraordinarily low interest rates from about 1995 on. And since nobody else is talking about this, I might just point out that perhaps the rapid acceleration in the upward movement of the stock market, followed by substantial depressions in stock market prices noticed on the right side of these charts, might have correlation to cheap money.
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom