At what point will Janet Yellen realize that Financial Markets are screaming at her that she is so far behind the bubble curve, that we are at Tulip Market Level Status for Behind the Curve Territory? It is obvious that there is too much cheap money sloshing around the Financial System right now!
The entire Financial System is at Risk Right Now because of Clueless Central Banks who have no idea the Monster they have Created with This Latest Asset Price Bubble! Really Janet, You Still Don`t Believe That You Are Behind The Curve?
It is time to go back to the normal historical levels for interest rates, there never was a “new normal” this was just patently wrong. We wouldn`t have this level of a bubble in stocks if there was a new normal. It is the same as it always has been, if you lower interest rates for a decade, you will create asset bubbles, that cause the next financial market crisis just like in 2000, 2008, and 2017.
I would start with a 50 basis point rate hike on February 1st to get the Market`s attention Janet Yellen. But the longer you continue to deny that the Fed is behind the Rate Hiking Curve, the Bigger the Market Dislocation when the Crash Inevitably occurs. Why because you have to telegraph to market participants to get out of risky trades and investments because the cheap money has gone too far!
Janet Yellen or any economist, just look at those charts below and explain how we are not well behind the curve by any historical measure? This is just plain irresponsible Central Bank Policy right here, and we didn`t learn anything from the credit bubble in 2008. Are we really this stupid as a human species? Where we do the same thing over and over again, and fail to learn from our mistakes? Bubbles never end well for society.