Marc Faber – 6 Points to Keep in Mind About QE3
Big bear and managing director and editor of the Gloom Boom and Doom report was on CNBC reacting to the start of QE3.
– He thinks expansionary monetary policy of Alan Greenspan and Ben Bernanke has created a mess of the U.S. economy.
– Housing bubble was caused by expansionary policy of Fed and led to the worst financial crisis.
– Consumption has never led the economy out of recession; it is always capital spending.
– He said if he was Ben Bernanke he would have resigned by now.
– If he really wants to help households and the man on the street he should send a check of $5 million to each household and put that on U.S. balance sheet rather than QE3.
– He said, “Quantitative easing helps the Mayfair economy, the economy of rich people whose net worth increases. The money doesn’t flow to the man on the street.”