One of this items that suffered in the post financial crisis period was the public’s confidence in the in the Federal Reserve and its chairperson, as a recent survey by the Wall Street Journal, citing Gallup Data, shows that confidence in Fed Chairwoman Janet Yellen has slipped to just 38% of Americans who had high confidence, while 35% had low confidence. These figures are shadows of the public confidence in Alan Greenspan prior to the Dot-Com bust of high confidence 74% and low confidence just 16%. Not really a surprise when you look at the recent Jackson Hole Symposium where Janet Yellen fresh of successfully talking up higher interest rates once again. Showed that in fact the Fed has no idea, as evidenced by their track record this millennium. Their forecast ranges are so wide as to be essentially meaningless. While their base strategy is to simply issue ever increasing amounts of debt to goose spending which more or less implies rates won’t go up because the debt service costs would be crushing, Federal, State, Municipal, Business and Private. What we desperately need is a new strategy as following in Japan’s footsteps is not the answer as they will prove the Canary in the coalmine one day quite soon.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.