Billionaire investor Paul Singer says the financial system is no more sound than it was in 2008. In fact, he contends that in many cases, it is more leveraged than it was leading up to the 2008 crash.
During an interview at the Bloomberg Invest New York summit, he pinned the blame squarely on what he calls extreme central bank monetary policy and growth suppressing government actions. And he warned it’s going to create a ‘ruckus’ when the bubble pops.
I’m very concerned about where we are in terms of the financial system, the economy, the American economy, the global economy. After nine years of what I consider to be a distorted set of policies, completely oriented towards what I regard as monetary extremism – the quantitative easing that has put about $15 trillion dollars of bonds, and now stocks on the books of the developed country’s central banks, zero percent and negative interest rates; emergency monetary policy persisting for eight years after the emergency is over, combined with what I consider to be growth restrictive fiscal policies – regulatory, tax. So, I think it’s created a distorted recovery.’
This post was published at Schiffgold on JUNE 9, 2017.
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