So here’s a fun piece. Mish Shedlock of Sitka Pacific Capital Management recently took on Federal Reserve Chair Janet Yellen’s Outlook for the Economy speech and positively obliterated each and every one of her points regarding the U.S. economy.
Starting with her statement that the economy is well positioned for continued growth since households are benefiting from the improved jobs situation and the fact that consumer confidence has been solid, Mish takes down Yellen by pointing out that despite her claims, consumer confidence has been sinking like a rock.
He then goes on to rip apart her assertion that the drop in oil prices has been a boon to households, reminding us that:
Any savings on energy went up in smoke on rental increases and rising health care costs.
As for her points on consumers, economic projections, bubbles, and inflation, he gets to those too.
While I do think it’s a little arbitrary, Mish’s rebuttal is nothing short of awesome. And with all the uncertainty currently lingering in the markets, we might be in for more laughs pretty soon. Stay tuned.
Photo credit: the International Monetary Fund via Flickr