Yastrow Origer: "We’re on The Verge of A Great, Great Depression. The Federal Reserve Knows It"!
- To those of you who still think that everything is A-OK, the global economy is recovering, all sovereign debt problems will be resolved easily… what are you smoking? I need a triple dose of your delusional optimism.
– - The western (and Japan) economy is not improving. The liquidity injection via QE1 & QE2 only provided a small fillip to the overall Great Depression 2.0. You cannot create wealth by printing money. You cannot create jobs by printing money. You cannot create economic growth by printing money. If you can, then the FedRes should go the whole hog and printing US$1B for each man, woman, child and their pet dog.
– - I am not a fan of paper assets, including stocks. The exception being gold/silver mining stocks. All paper assets will be hit when hyperinflation kicks in. Stocks may rise in value because of currency devaluation. But adjusted for currency debasement and economic collapse, I doubt you will get a real return. Got gold yet?
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Wall Street Baffled by Slowing Economy, Low Yields: Trader
by Margo D. Beller , CNBC.com
Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC. “What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be utting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.
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“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”
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Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.
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“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it.
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“We have many, many homeowners that are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown and the economy’s gonna suffer.”
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However, he said he wouldn’t sell stocks. “Any bears out there better be careful because the dividend yields on these stocks look awesome relative to all the other investment vehicles out there,” Yastrow said. “So bears are going to have to find a new way to express their discontent with the U.S. economy.”
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