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James Grant Criticizes Federal Reserve Policies

September 20, 2012 | About:
Dheeraj Grover

Dheeraj Grover

Jim Grant of Grant's Rate Observer was on CNBC to discuss his reaction and views related to recent quantitative easing by the U.S. Federal Reserve, aka Quantitative Infinity or QE Forever.

-- He blasted the Federal Reserve again for its low interest rate policy.

-- Calls the policy "non-stop chronic interventions."

-- He said the Fed is starving the savers and subsidizing the speculators and that will have dire implications

-- There will be lot more possible consequences versus only four highlighted by the Fed in the Jackson Hole speech. Hong Kong real estate prices going up is a distant consequence of Fed policy in the U.S. as the Hong Kong dollar is pegged to the U.S. dollar.

-- This is an experiment, and the Fed is trying to learn as it is doing it which is not good.

-- Investment opportunities: equities. He loves GM (GM) for its valuation and solid balance sheet. Look for investments where there is margin of safety and solid balance sheets

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.6/5 (5 votes)


Vgm - 2 years ago
Jim Grant is a very intelligent and informed guy. But he's too prone to hyperbole and has become a caricature of himself in my opinion.

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