Yellen's lost her ability to jawbone markets

What do I take away from Fed chief Janet Yellen’s press conference on Wednesday?

I believe she has thrown up her hands in utter defeat to the markets. Gone are the days where a Fed chair can jawbone the markets.

She has tried to talk the market into believing there will be a rate hike this year, but the bond pits have told her to take a hike instead.

How did the Fed lose its ability to move markets with a comment?

Its move to transparency took the mystery out of the equation. Since the 2008 crisis every Fed president is allowed to speak their thoughts, markets can see the divide in the FOMC and move accordingly.

Gone are the days a gauging how much paperwork was in former Fed chief Alan Greenspan’s brief case to figure on a rate hike. Now you just have to ask.

Oh, and one other thing hurting Yellen’s ability to reign in the markets, the economy sucks.

In a little less than a month bitcoin has soared $300 to trade Thursday in the $740 range.

I’m not convinced this is a result of the Brexit panic, which has perverted stock and bond prices over the last week or so.

The reason I’m skeptical is the fact that bitcoin users seem to be more of a tech-oriented crowd, which are less likely to have a currency play on their radar.

Some early adopters point to the Chinese as being the driver for this move. As the Chinese government cheapens its currency to stem slowing growth.

I would venture that the Japanese are also dabbling in bitcoin as a way of hedging the yen. However when I say Asian investors are looking at — and perhaps investing in — bitcoin, it is the smallest of portion of the population. Bitcoin in no way has even approached being known — never mind accepted — by most people.

While we have the price movement that we can chart,  I cannot find a volume chart to show how robust the market is. This would be a very valuable tool to gauge the depth of the market.


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