Sunday, March 10, 2013

Latest Hussman


"The problem with investors’ excessive faith in QE is likely to emerge at the point when sporadically emerging economic or financial strains (Europe, global recession, U.S. fiscal policy) weaken the inclination of investors to speculate – pitted against a monetary policy that has no material transmission mechanism other than to encourage speculation. As we observed in 2008, when the Fed was aggressively slashing interest rates well before Bear Stearns got in trouble (much less Lehman)..."

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