Yellen Stays Upbeat But Is Watching Housing

Janet, the economy is fine.  Jobs are gaining traction and the ISM’s both manufacturing and non manufacturing are stellar.  Janet, didn't they teach you about trends and economic momentum in Economics 101?

The economy is good, so why don’t you not only stop fretting but show ‘em who’s boss and add a surprise phase out of ZIRP at the next FOMC meeting?  C’mon Jan, Grandma and her passbook at the local bank hang in the balance.

I am sure housing is just having a little blip, you know an out cycle.  You can’t micro manage every blip after all, can you?  Can Grandma please… pretty please get some return on her savings without having to jump into the risk pool?

But of course, as Batman needed the Joker, so too does the Fed chief need a reason for remaining cautious about something.  After all, a house of cards tends to get very unruly if it is upset in the least.

[edit]  Should have read page 2 before posting.  It ended with this nugget:

She called rising inequality “very disturbing” and something that Washington policy-makers should focus on.

This flat out pisses me off.  A good tongue in cheek post ruined by a pissed off blogger.  The rising inequality is very disturbing and it is laid at the feet of Greenspan, Bernanke and now you Janet if you do not grow a set and back off the policy that has enriched asset owners at the expense of savers and ‘make ends meet’ ers.

The article even touts…

The stronger economy should be supported by less-tight fiscal policy, gains in household net worth from increases in home prices and stocks…

So asset owners are ready now to do the heavy lifting, right?  Then let ‘em lift on their own.