Introducing Janet Yellen - she may be about to make your life even more interesting

MarkB

MarkB

Who?

Dr Janet Yellen, that's who.

She's the current Vice-Chairperson of the "US Federal Reserve" and, more importantly, now Larry Summers has withdrawn his name from the pool of Candidates, she is considered a leading contender for the position of Chairman to replace Dr Bernanke come next February.

Whether it is her or someone else who lands in the role of what is arguably the most powerful appointed public servant in the western world, eventually that person will have to make a call on whether the Fed is continues to monetize $US 40 bn per month of mortgage backed securities.

You could be hearing a lot more of this woman... but again, whoever it is, you'll soon know their name.
 
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For mine, events taking place overseas are going to have a big impact on us over here in Oz.

I think Aust remains relatively strong but the crazy amount of debt worldwide bothers me. Couple that with supressed interest rates, anemic growth and Yellen's noted liking of money printing and I'm becoming very cautious.
 
tab said:
For mine, events taking place overseas are going to have a big impact on us over here in Oz.

I think Aust remains relatively strong but the crazy amount of debt worldwide bothers me. Couple that with supressed interest rates, anemic growth and Yellen's noted liking of money printing and I'm becoming very cautious.
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Yeah, but what about the property boom in Oz. Thats gotta be a plus for us.
 
datto said:
Yeah, but what about the property boom in Oz. Thats gotta be a plus for us.
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Yep, as I said, seems like we are relatively strong, but I'm still worried. If we have another GFC (ultimately there has been no real deleveraging), what does the world, and Oz, do?

(apologies if you were being sarc?)
 
No sarcasm, never.

tab said:
Yep, as I said, seems like we are relatively strong, but I'm still worried. If we have another GFC (ultimately there has been no real deleveraging), what does the world, and Oz, do?

(apologies if you were being sarc?)
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Hmm...so to hedge the bets maybe we prop investors should look at perhaps downsizing or cash in if you like. A sort of insurance, in case the rear end crashes.

Or maybe sell everything, no debt and watch and see what happens. Then when the slaughter happens buy back up cheap. Timing will be important. Predicting the doomsday without hind sight will be difficult. Next year?, the year after?, who knows.
 
I'm still waiting to see if we have another genuine boom, which may actually push us toward bubble territory.

If that happens I'll be changing strategy, and substantially deleveraging myself, mainly to take profit and to position for opportunities going forward.
 
datto said:
Hmm...so to hedge the bets maybe we prop investors should look at perhaps downsizing or cash in if you like. A sort of insurance, in case the rear end crashes.

Or maybe sell everything, no debt and watch and see what happens. Then when the slaughter happens buy back up cheap. Timing will be important. Predicting the doomsday without hind sight will be difficult. Next year?, the year after?, who knows.
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You do whatever you want, depending on your circumstances.

I certainly don't know. Information and disinformation overload.

Predictions, as Taleb wrote, are almost as good coming from a taxi driver as from an economist.

I'm worried: the can has only been kicked and we havent dealt with the last / current crisis yet, as has been mentioned.
 
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