I’m not the sharpest knife in the drawer. Jim Grant, on the other hand, is. Here are some notes and the link to his latest 13 minute Bloomberg appearance:
- Would like to hear that QE2 has weakened dollar, higher gold price, and higher inflation
- QE2 was money printing
- Fed attempt to levitate stock prices is new and could be dangerous; what happens if the market comes down? That is why QE3 is likely if the stock market weakens
- Fed is trying to create symptoms of prosperity by lifting stocks and bonds. That is putting the cart before the horse. Should be focusing on the economy first not the stock market.
- Fed is not instilling confidence. Gold is telling us that.
- Corporate America is doing a great job, but it isn’t because of dollar weakening.
- Feel sorry for the poor saver who can’t earn anything on their deposits. Money market funds are chasing yield in Europe and putting savers money at risk. This is unintended consequences at its best.
- Monetary system as it has evolved is the cause of much of our problems. We have substituted the gold standard with the Fed’s “PHD” standard.
- Considering the state of the housing market could the Fed do anything but keep rates low? Grant would allow the housing market to work itself out and we can move on. The Fed is imposing false values on assets.
- Grant thinks we will have credit market events because everyone is being encouraged to take risks with such low rates. The problem today is that investors are not getting paid for these risks.
- Thinks we should get rid of the Fed and their PHDs and get someone who is focused on the law of unintended consequences and is willing to do less.
- The consequences of Quantitative Easing are still not known.
- Fed is a prisoner of its own thinking as they have set a standard for supporting the stock market and asset prices; How do they not step in again should they falter?
Here is the link to the video: http://www.bloomberg.com/video/71274340/
- Would like to hear that QE2 has weakened dollar, higher gold price, and higher inflation
- QE2 was money printing
- Fed attempt to levitate stock prices is new and could be dangerous; what happens if the market comes down? That is why QE3 is likely if the stock market weakens
- Fed is trying to create symptoms of prosperity by lifting stocks and bonds. That is putting the cart before the horse. Should be focusing on the economy first not the stock market.
- Fed is not instilling confidence. Gold is telling us that.
- Corporate America is doing a great job, but it isn’t because of dollar weakening.
- Feel sorry for the poor saver who can’t earn anything on their deposits. Money market funds are chasing yield in Europe and putting savers money at risk. This is unintended consequences at its best.
- Monetary system as it has evolved is the cause of much of our problems. We have substituted the gold standard with the Fed’s “PHD” standard.
- Considering the state of the housing market could the Fed do anything but keep rates low? Grant would allow the housing market to work itself out and we can move on. The Fed is imposing false values on assets.
- Grant thinks we will have credit market events because everyone is being encouraged to take risks with such low rates. The problem today is that investors are not getting paid for these risks.
- Thinks we should get rid of the Fed and their PHDs and get someone who is focused on the law of unintended consequences and is willing to do less.
- The consequences of Quantitative Easing are still not known.
- Fed is a prisoner of its own thinking as they have set a standard for supporting the stock market and asset prices; How do they not step in again should they falter?
Here is the link to the video: http://www.bloomberg.com/video/71274340/
