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Comparing the Fed's ZIRP and QE to a diet of jelly donuts (one = awesome, a steady diet =...

Comparing the Fed's ZIRP and QE to a diet of jelly donuts (one = awesome, a steady diet = hospitalization), David Einhorn tells a Grant's conference central bank policy is suppressing what he considers to be cheap stock values. Hugely disapproving of current monetary and fiscal policy, Jim Grant explains why he's also hopeful. Wide-ranging interview here.
Comments (7)
  • Tack
    , contributor
    Comments (12442) | Send Message
     
    Grant starts off by sounding most reasonable, like a free-market promoter, criticizing the Fed's impact on prices. Then, he devolves into promoting something as lunatic as an "internationally determined" (the UN, anyone?) currency, based on gold, if he has his way. To top it off he wants assets expropriated ("clawbacks") from private individuals (only evil bankers, of course) as some form of retribution for the recent financial crisis, a truly totalitarian form of state-driven confiscation, about as far from the concepts of personal freedom and free markets as one can get.
    28 Apr 2012, 09:58 AM Reply Like
  • Econdoc
    , contributor
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    beware of ideologues posing as investment advisors.

     

    E
    28 Apr 2012, 10:56 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9920) | Send Message
     
    Jim Grant is bit of an eccentric, but at least he (unlike the morons at the Fed and central banks) can distinguish between deflation-falling prices (good) due to productivity, competition, innovation, etc. as opposed to deflation-falling prices (negative) caused by bad loans, excessive leverage, excessive borrowing, excessive risk taking, privatizing profits vs. socializing losses, etc.
    28 Apr 2012, 06:13 PM Reply Like
  • slard271
    , contributor
    Comments (63) | Send Message
     
    Exactly, Untrusting Investor.

     

    The former is symbolic of a market appropriately pricing assets versus risk and the latter is that of a centrally planned ponziconomy.
    29 Apr 2012, 12:02 AM Reply Like
  • srspa77
    , contributor
    Comments (326) | Send Message
     
    Just worried about $5 gas...
    28 Apr 2012, 07:54 PM Reply Like
  • jamiemordas
    , contributor
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    QE3 will just inflate stocks worth more and more until the dow hits 20Million

     

    Fed -> Banks -> Stocks - Loans -> Rinse -> Repeat
    28 Apr 2012, 10:35 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3573) | Send Message
     
    I thought QE made the stock market the only place left to make a return on your money. Am I wrong? I can't save, CDs or bonds are too low, below inflation...so I opened an e-trade account and invest in high yielding stocks. What else can I do?
    29 Apr 2012, 02:42 AM Reply Like
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