11/12/2014 - Federal Reserve Policy is “Financial Repression At Its Finest”
“I side with Hussman and have been in his camp for a number of years. Make calls like this and you look foolish until the bust happens. To paraphrase John (I cannot find the exact historical quote) ‘The choice is whether one looks foolish during the runup, or during the inevitable decline.’ .. Fed policy certainly represents financial repression at its finest. It’s very much behind the income inequality that Fed Chair Janet Yellen moans about all the time .. Forcing stock, bond and other asset prices higher only helps those who hold stocks, bonds and assets (the wealthy, not the poor) .. When stocks rise, it also drives CEO pay higher and higher via performance incentives and stock options. That money is not taken back when stocks crash. The irony is stunning. If Yellen wants to understand the central cause of income inequality, all she has to do is look in a mirror.”
– Mish Shedlock
