Nov 10, 2010

Michael Aronstein on the reality of QE for savers and borrowers

In effect what the Fed is doing is guaranteeing that if you're a saver and desire safe assets you get no return. [Retirees] better have an awful lot of money if they want to live off of interest. So, it's forcing people, worldwide, to take risk, to take all kinds of risks that they're probably not all that comfortable taking and in effect it's a wealth transference from people who are natural creditors, people who have accumulated savings, to people who can use them, people who are natural borrowers.

~Michael Aronstein, president of Marketfield Asset Management, Bloomberg Television's "Surveillance Midday", November 9th, 2010

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