What is your plan so you can take advantage of the good and avoid the bad?
Stagflation anyone? >_<
It may happen in 2015
and it happened in the late 1970s
where wage barely increased
but the interest rate went double digit in the 1980s.
[June 2015: well, a bit of deflation right now
but the minimum wage also rose to $10/hour in California]
30-year treasury bond with 13% interest.
18% interest on your money market account. yay~
10-12% on mortgage interest.
15-17% on car loan. boo~
- - - - - - - - -
She [Janet L. Yellen]
was sworn in as the head of Federal Reserve on February 3, 2014.
A speech was made on March 5th, 2014.
http://en.wikipedia.org/wiki/Janet_Yellen
Yeah~ From what I read, she's not the show-y type.
She is more of the boring-teacher type. :p
And with her fellow policymakers,
she has more than tons of work to do! -@.@-
She promised to keep the interest rate low until the unemployment improved,
which may go beyond 2015.
//The past six years have been difficult for many Americans... the hardships [job lost, sickness, etc] faced by some have shattered lives and families. Too many people know firsthand how devastating it is... [and] to run through your savings and even lose your home, as months and sometimes years pass.
The Fed provides this help by influencing interest rates. Although we work through financial markets, our goal is to help Main Street, not Wall Street. By keeping interest rates low, we are trying to make homes more affordable and revive the housing market. We are trying to make it cheaper for businesses to build, expand, and hire.
...
The other goal assigned by the Congress is stable prices, which means keeping inflation under control.
In the past, there have been times when these two goals conflicted--fighting inflation often requires actions that slow the economy and raise the unemployment rate. But that is not a dilemma now...
The Federal Reserve takes its inflation goal very seriously. One reason why I believe it is appropriate for the Federal Reserve to continue to provide substantial help to the labor market, without adding to the risks of inflation...
1)the seven million people who are working part time but would like a full-time job. This number is much larger than we would expect at 6.7 percent unemployment.
2) the decline in unemployment has not helped raise wages for workers as in past recoveries. Workers in a slack market have little leverage to demand raises.
3)extraordinarily large share of the unemployed who have been out of work for six months or more. These workers find it exceptionally hard to find steady, regular work, and they appear to be at a severe competitive disadvantage when trying to find a job.
4) an increasing share of the population is retired... But some "retirements" are not voluntary, and some of these workers may rejoin the labor force in a stronger economy. [some senior workers were force to retire when they cannot afford to do so, and need part-time job.]
//
http://www.federalreserve.gov/newsevents/speech/yellen20140331a.htm
At the 2014 National Interagency Community Reinvestment Conference, Chicago, Illinois
March 31, 2014
A comment from WallStreetJournal http://blogs.wsj.com/moneybeat/2014/03/31/janet-yellen-gives-one-of-the-most-dovish-speeches-i-have-ever-read/
Stagflation anyone? >_<
It may happen in 2015
and it happened in the late 1970s
where wage barely increased
but the interest rate went double digit in the 1980s.
30-year treasury bond with 13% interest.
18% interest on your money market account. yay~
10-12% on mortgage interest.
15-17% on car loan. boo~
What is your plan so you can take advantage of the good and avoid the bad?
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