The Fed’s Clock Just Struck Thirteen

[piezoe]

My favorite part of his Fed narrative is that it was Greenspan's loose monetary policy that fully justified the Bernank's ULTRA loose policy which leads us to Yellen's uber dovishness...

He doesn't consider the possibility that the Fed is a bubble making machine.

See my post responding to Gubinec for what I believe is the real source of bubbles. I wish I could take credit for the ideas I express, but it is really just Soros' ideas in another context.

Regarding loose monetary policy, you're read something into my post that's not there. You are reading something that you want to read rather than what I wrote. A common occurrence with us all. Please re-read my post.

 

[piezoe]

in post 16 above it is 'site' not 'sight'.

 

[ETcallhome]

See my post responding to Gubinec for what I believe is the real source of bubbles. I wish I could take credit for it, but it is really just Soros' ideas in another context.

The real source of bubbles is when you do something bad your parents warned you about and instead of getting punished you get rewarded.

 

[piezoe]

The real source of bubbles is when you do something bad your parents warned you about and instead of getting punished you get rewarded.

Your clever remark reveals much insight into bubble formation. I agree, this is the real source of bubbles, but figuratively.

 

[fhl]

Photo from oval office this week of Obama giving a physical demonstration to Janet Yellen of what he wants from her.

 

[Bakinec]

Photo from oval office this week of Obama giving a physical demonstration to Janet Yellen of what he wants from her.

Thanks for the laugh, fhl!!! That was funny!!

It's seriously mind-boggling though how complex the whole issue is. I believe our economy's deep relationships with other economies - globalization at work - will make it simply impossible to pacify the critics of the Fed who want to abolish it all-together and give the the keys to monetary policy back to the elected contingent (Congress). Most countries have adopted the model that we have, and it would seem like the whole world economy would implode if the fundamental building blocks of our monetary policy were to be replaced as the monetary reformists seek to do. Given the amount of responsibility that Yellen and those before her faced, it's very tough for me to blame them, or anyone for that matter, for trying to just keep the system working as smoothly as possible. One wishes them luck in their endeavor of constantly watching out for any one hidden factor not to pop out in surprise and send the economy into a shock. God forbid! Good luck, Fed!!

 

[ironchef]

I appreciate all the high level discussions and theoretical stuff. So, can you experts give a mom and pop investor like me some advice:

Real Estate - too expensive, near all time high
Stocks - overprice, PE at/near historical high
Bonds - yield next to nothing
Cash - cheapen by USG printing press and it does not generate any income
Commodity, gold, sliver... they seemed cheap but they don't generate any income
Foreign currencies - most all governments are printing more money
????

Maybe I sell everything and move to Tahiti?

 

[ETcallhome]

I appreciate all the high level discussions and theoretical stuff. So, can you experts give a mom and pop investor like me some advice:

Real Estate - too expensive, near all time high
Stocks - overprice, PE at/near historical high
Bonds - yield next to nothing
Cash - cheapen by USG printing press and it does not generate any income
Commodity, gold, sliver... they seemed cheap but they don't generate any income
Foreign currencies - most all governments are printing more money
????

Maybe I sell everything and move to Tahiti?

excellent post
Rock Paper Scissors?
Bonds Cash Stocks? (or for us unwashed commodities)
Hot potato?
Add to that FX
Remember, before you start your trading day, always bow down to the Crude God.

 

[Martinghoul]

I appreciate all the high level discussions and theoretical stuff. So, can you experts give a mom and pop investor like me some advice:

Real Estate - too expensive, near all time high
Stocks - overprice, PE at/near historical high
Bonds - yield next to nothing
Cash - cheapen by USG printing press and it does not generate any income
Commodity, gold, sliver... they seemed cheap but they don't generate any income
Foreign currencies - most all governments are printing more money
????

Maybe I sell everything and move to Tahiti?

European stocks are probably not overpriced...

 

[ETcallhome]

European stocks are probably not overpriced...

never wrong often early, VFWIX is a Vanguard mutual fund which is convenient for US investors who agree. Similar to EFA or VEA, VEU. At any rate, all World ex US.
Me personally? I could go maybe 20%