October Was A “Trailer” For Real Market Turmoil, Don’t Hold Your Breath For Policymakers

Excerpted from Paul Singer’s letter to investors,
Policymakers in the developed world do not seem to believe (as we do) that their complete reliance on zero-percent interest rate policy (ZIRP) and quantitative easing (QE) for propping up the global economy may be the unintended but proximate cause of the poor performance of the developed economies over the last six years, rather than the cure-all nostrum that they think it is. Indeed, Europe is in the process of actually doubling down on QE, with large asset purchases by the European Central Bank expected in the near future. ZIRP and QE were concocted as emergency strategies, but their persistence post-crisis has caused distortions that have seriously interfered with the proper functioning of the developed economies. Ironically, these policies also exacerbate the income and wealth inequality that has become a source of some resentment among the public at large, as well as considerable attraction as talking points for politicians.

This post was published at Zero Hedge on 11/10/2014.