Janet Yellen. What do u think of her? Kept the bubble going longer (barely raised rates) & now head of the treasury. Either way, we are here: fortunes of the fortunate rise higher every day while the poor stuck in a rut, waiting for handouts/claims as basics rise higher & higher
Janet Yellen: 1st woman to be head of the Fed, a labor economist so cared more about unemployment, meaning a ποΈ& kept rates low to "promote" labor.
She believes in smoothing the business cycle (Keynesian). Question is, to what end?
Unemployment did drop but inequality higher.
She believes in smoothing the business cycle (Keynesian). Question is, to what end?
Unemployment did drop but inequality higher.
As someone who was head of the Fed to believe that interest rates - persistently low rates through influencing price & quantity of $ - helps labor requires a lot of trickle down effect. But assets like housing, an essential, became more expensive faster than wage growth. So what?
The thing about the Fed isn't that it is just theoretical but also operational.
For $ to flow to where it's needed (btw, usually doesn't b/c risks too high to lend to homeless/poor people), it requires ACCESS. Low rates favor those w/ access to low rates.
Who are these people?
For $ to flow to where it's needed (btw, usually doesn't b/c risks too high to lend to homeless/poor people), it requires ACCESS. Low rates favor those w/ access to low rates.
Who are these people?
The issue isn't the people on the receiving end of cheap capital & consequentially higher asset prices, whether financial or real like property/gold, but the system that leads to the outcome we have. Don't hate the player, hate the game. The Fed determines the price of the USDππ».
Here are her policy proposals as head of treasury. One interesting fact is that she will audit wealthier people more & leaves door to higher taxes on wealthy Americans. Interesting b/c nothing pushes inequality higher than low rates because it favors those w/ capital via asset π
No lifting of tariffs on China, FYI. She is also striking a much more hawkish tone vs China.
I like Janet Yellen (also love Kuroda). She is smart/means well. The question is how well do the theories she believe/learned/created/taught play out, as seen by her time at the Fed.
I like Janet Yellen (also love Kuroda). She is smart/means well. The question is how well do the theories she believe/learned/created/taught play out, as seen by her time at the Fed.
I write this thinking about my generation - millennials ( younger ones too) & how we have grown up post the GFC & low rates & high unemployment & real estate & education & healthcare prices.
Many reaching middle age w/ little to show despite hard work.
Many reaching middle age w/ little to show despite hard work.
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