In quoting the great Yogi Berra, the reference could be the daily algo-driven headlines of the Greek drama. It could also be the issue of a data-dependent Fed and will rates be raised in 2015. Or it’s some very successful and knowledgeable investor bloviating about the correct valuation for the stock market.
While all these issues have been filling the pages and airwaves of the financial media, what I am primarily referring to is a speech given by former Governor Donald Kohn at Widener University in April 2004. Titled, “Monetary Policy and Imbalances,” it is a speech that Chair Yellen OUGHT to present to all current FOMC voters. I will list several points that Fed Governor Kohn raised in 2004, warning of the ill-effects of the FED maintaining interest rates at an ultra low level of 1 percent for too long.