From Yahoo Finance: For four years the FOMC has been
printing money to keep interest rates low in order to stimulate the economy.
For just as long investors have been hand-wringing over the long-term dire
implications of such quantitative easing. The basic idea is that the Fed will
eventually stop printing and all assets would tumble, priced as they are
relative to risk-free money. With the Bank of Japan, Europe, China and
seemingly every other major economy now doing variants on this form of
stimulus, the "race to debase" currency has become a national
phenomenon.
Marc Faber, the editor of the popular Gloom, Boom, Doom
Report has been among those critical of central bank stimulus. Now he says the
party is REALLY over.
Joining Breakout by phone from Thailand, Faber says the Fed
has painted itself into a corner. The Fed can’t keep printing, he says. If and
when they stop, asset prices will fall. If the stimulus doesn’t stop it means
there is a weak economy for the foreseeable future. In such a scenario the
sickness afflicting the world will never be allowed to run its course...
Read more at http://finance.yahoo.com/blogs/breakout/fed-party-over-invest-overseas-marc-faber-140453716.html
No comments:
Post a Comment