Janet Yellen became one of the world’s most powerful players when President Barack Obama appointed her Chair of the U.S. Federal Reserve Board. What expectations do we have? She carries more financial sector influence than any other civil servant in the world. Questions abound over Fed policy, financial stability, Mega-bank and financial institution regulation, asset bubble control and relations with Congress.
You can ride the tapering groupthink higher. Groupthink can produce mindless selling triggered by emotional and knee jerk reactions to tapering talk. Made without any critical thinking, that behavior can produce stock and bond market turmoil. Any selloff can work in your favor. Times of turmoil and volatility produce excellent buying opportunities.
Following tapering groupthink could cost stock market investors! Tapering groupthink relates to pending changes in the FED’s quantitative easing (QE) program. Market reaction to the changes can take money out of your pocket. The tapering will definitely and significantly affect markets.
At the Senate confirmation hearing into Yellen’s appointment by President Barack Obama she articulated her vision of future Fed policy. Anyone listening as I did could come to the same realizations. The continuation of established Fed policies will mean markets will continue going up.
Fed Chairman Ben Bernanke has the answer: From the dawn of time the business cycle has boomed and busted. For any product or service we humans endlessly seemed destined to repeat the same pattern. Be it a company or economy we cycled endlessly through extremes of expansion and contraction.
Consider the possibility that Ben Bernanke knows the way to smooth this cycle and put prospects of greater prosperity back on the table.
Ben Bernanke saved investors and the world from a world-wide depression by using the power to the Fed to stimulate the economy. Investors everywhere must know this. One courageous, brilliant and patient man stood between us and the abyss. An imaginative economic magician saw the future and took us there to save America and the world! The stimulus programs of Ben Bernanke have done just that. The ideal person with exactly the right knowledge and ability was in place when the economic alarm bells sounded in 2008. He saved us from again becoming victims of market greed.
Seeing Fed brilliance in action! Part 2 of 3 Ben Bernanke and the U.S. Federal Reserve Bank will self-liquidate well over $1.3 trillion massive mortgage inventory by simply letting the bonds mature. That great pile grows larger at the rate rate of $85 billion more each month!
Fed Chairman Ben Bernanke began “Taper Talk”. Part 1 of 3 Why does tapering matter? Today we discuss the pending Fed tapering as market reactions and the high volume of strydent commentary continue to confuse investors. The U.S. Federal Reserve Bank continues to pump massive amounts of money into the economy. This stimulus program will have an end. That will be when the economy picks up and shows progress without needing the continuing massive Fed funding.
Tapering describes the planned slow reduction of that programed Fed spending. The current phase of the Fed program has them deeply involved in funding virtually all the mortgage market. The Fed continues buying mortgages at the rate of $85 billion per month.