Sadly Yellen can't complain given the Fed is purposefully encouraging blatant debt growth in excess of what is affordable long term. In their eyes they have disassociated economic fact from hyperbole about how debt and more debt drives credit and economic expansion. Fortunate for them, this credit expansion hasn't caused inflation due to our reliance on importing which is the result of the Fed's policies that require businesses to import to keep prices low to counter the inflation caused by excessively lax economic policies.

The fact the Fed wants inflation is suicidal. Inflation will make it impossible to keep rates low and will make it acutely obvious to everyone that they are getting much worse off faster while it eats into their already thin disposable incomes already driven down by excessive housing and rental prices caused by the Fed's asset bubble.

There is not much that can't be attributed to the Fed including the decimation of the middle class, the destruction of income for retired people and the wealthy, the slow economic growth, and the fact that they now can't do anything if another severe downturn comes which they are engineering to a tee.

As pointed out, if you think this year is volatile, you haven't seen nothing yet and are horribly naïve. Volatility has increased but is still staying within a trading range. Beware of anything that breaks this reasonably wide trading range and don't bet on the market breaking the top of the range anytime without a equal or greater downside much like the last downturn. Upside volatility in a market like this is just as dangerous as downside and strangely can be the trigger of the final market collapse.

They are smart. Party risk is vastly misunderstood and under rated throughout the financial markets. Sadly, companies and banks have taken advantage of this offering slews of products without enough coverage and backed by companies that purposely don't have enough capital to cover mass defaults if they occur.

Be very cautious about ETFs, mutual funds, collective asset investments, and just about anything your broker peddles to make money off your investment. The money comes from somewhere. That somewhere is from your money. If you think that it is not important it is. It comes from you taking more risk so that they can finance paying themselves by putting your assets in more danger. This can be done by not properly insuring your investment which 3rd party risk can easily leave you with nothing when a crash occurs.

Be very cautious. More and more big investments are moving to short term bonds overseas as well as domestically. This is the smart money we're talking about. The reason is a fear of the instability of many investments due to 3rd party risk.

This is mainly the product of the Federal Reserve's policies which mirror Japan's. As their policies drive down capital expenses and encourage debt while inflating housing which decimates middle income people who can't get pay increases to match housing rises, we will eventually hit a very nasty wall and will suffer an even more dizzying dystopia caused not by capitalism, but by deviating well off the road of capitalism.

We need to stop this, but the Federal Reserve was created so that the public and elected officials have little to no control over them despite how horrific their polices become. Sadly their policies drove the last downturn and rather than curtailing their power, they were given more powers and regulatory powers which they are using to create an even worse downturn. The only way to protect yourself is don't get over indebted, save even though they are trying to encourage you not to, and don't put it in risky investments even though they are trying to force you to do so to get gains that don't justify the risk you take.

Until this is fixed true capitalists must be very cautious and do something to end this planned economy destruction before it obliterates capitalism.

I think we got our wires crossed. I thought your speaking of new monetarism was about zirp and QE which I am referring to. I have no qualms about raising rates back to normalcy although it will pop the horribly giant bubble they have already created and bankrupt many people and companies who they encouraged to unsustainably overleverage.

Raising rates back to normal levels is very old monetarism in my eyes and much more fitting to true sustainable economics and capitalism than where we are today. Sadly the Fed hasn't realized yet that capitalism works fine on its own. What doesn't is gross manipulation of it which often creates worse calamities than not doing anything.

New Monetarism is part and parcel of a planned economy which by its own definition is not capitalistic. It's goal is to supplant free economics with planned/government controlled economics that can be manipulated by those in power. Although it works out sometimes it often results in spectacular catastrophe sooner or later. You have to look outside of the US to witness this.

It is a part of socialism, however, often vary corrupt socialism not bent on enriching the masses but enriching the few at the cost of the country's economy.

I agree on the second half of your comment and hope to see you posting again. You have a good head on your shoulders.

Sadly I feel like the Fed these days is a chartist too. Over following charts makes them more reliable until they make a clean break from the norm when all hell breaks loose. Be cautious.

If you invest in other countries you will see the adverse effect of heavy stock dilution in closely held companies. It has an effect when abused and that's why disclosure decreases the effect so you don't need to overly concern yourself with US stocks.

Agreed, especially in California which will sport the first $15 a hour burger flippers. Don't think your value meal will remain a value for long, and don't expect more service, there will be less cooks, waiters, cashiers, and chefs. Lot of good this will do to help employment.

LOL yay, maybe the bankers decided to hoard it again to turn into a long term investment. Sadly, such efforts only make the future of whatever they gamble with worse. Clearly this isn't normal usage demand increases we're seeing.