Apr 24, 2012

David Einhorn on income inequality

Ending the jelly-donut monetary policy [sugar high from ZIRP] would do more to alleviate income inequality than any of the widely debated changes in the tax code.  For the super wealthy, zero rates supported by a Bernanke put on the bond market encourage outsize income through leveraged speculation.  For everyone else, zero rates reduce the standard of living because greater food and energy costs soak up income.

~ David Einhorn, Spring Grant's Conference, 2012, as reported in April 20, 2012 issue of Grant's Interest Rate Observer, "Dollars to donuts"

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