Yellen is back! Or should I say "Yellenator" is baaaaaaaaaaaaaaacccckkkk!!
The chatter continued through the summer..."Summers or Yellen"?? Back and forth like a tennis match. Yet Summers bowed out and gave the new queen of "injection" Yellen the official role. Janet Yellen Bio is impressive and will become the first female to lead the Federal Reserve Board. Although the markets tried to create new candidates...even the infamous "Geithner increase your cap limit ECB" was mentioned? Could we imagine that?
Yellenator was the only choice...she consults with Bernhamlet on his FOMC meeting minutes & FOMC Statement....how could she not be the chosen one? She is the "status quo" for Wall ST...the "fat cats" will continue to see the equity markets inflate as all "hail rise to Yellenator".
Bullion markets have loved Bernhamlet ..can the Yellenator provide the same boost?? Yellen will be challenged yet she will keep the "ship afloat" for how long? While the US continues to play their "Hollywood epic" to the world, the world is looking to other alternatives and will the USD be tagged with an SDR? Overall, markets are pro "stimulus" regardless of "taper" talks...there will be no "Octaper" .."Decaper" or even "Janaper.
If we do see tapering...expect the return of huge stimulus in the future. The US cannot operate their military machine nor pay their bills and risk default, US debt limit will increase and all will remain "status quo". As well the Federal Reserve Balance Sheet needs to continue to increase their bond purchases. Who else will buy these "toxic assets" leftover from 2008. How will this play out....2014 or maybe 2015 alot of changes expected for our world financial system.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.