Jan 21, 2014

Stock Market & Real Estate Bubbles

It`s not the economy that is strengthened by QE. The economy is actually inhibited by QE. Quantitative easing is preventing a badly needed economic restructuring  that would enable the U.S. economy to actually grow. Instead what we are doing is we are pretending there is growth by inflating bubbles in assets. We have a stock market bubble, we have a real estate bubble, and now we can take that phony wealth and we can turn it into consumption through debt. And that is what is going on. But it`s not legitimate economic growth, you can`t confuse the two.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

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