Swiss America CEO: Consumer confidence is the problem
Craig Smith on economic policies
- Duration 3:31
- Date Sep 10, 2012
Craig Smith on economic policies
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Well forget about rescue our economy these days is Ben Bernanke all about rescuing Barack Obama.
Hard to say but it certainly isn't hard to imagine another round of fed intervention in the markets -- some markets and helps the president.
-- -- -- -- -- It hurts the guy trying to become president the same guy.
Who already has stated he wants -- out market watcher Greg Smith says this could be a case of -- Returning the favor so -- -- -- -- -- with Milton has the power to prove it.
Well sure -- and -- only thing that makes sense because another round of quantitative easing.
There's not gonna do any more than the first two rounds of quantitative he's.
By the way Craig you're -- -- cycle did just remind folks -- -- and at that.
Comes in the market's doing -- -- stuff it buys any notes treasury paper to find starts it all up tries to keep rates low.
Markets -- would -- -- generally and they expect it again.
That's exactly right -- what happens is -- nine minutes mr.
Bernanke's own words it forces investors looking for yield to go into the marketplace.
So you'll see a nice little pop in the stock market most people don't realize that the stock market is not the economy.
But they look at the stock market if it's doing well my 401K is doing well are mr.
Obama must be doing a great job.
It's the only thing that makes sense now O'Neal because think about it as you said and Fox Business did a great job reporting on this.
Romney is not gonna have mr.
Bernanke's serve another term I'll probably go with somebody like John Taylor from Stanford or Glenn -- That being said mr.
Bernanke has two reasons to do this number wanna get mr.
Obama reelected number two to keep himself in -- job.
But because because there's no way you -- look book deal we don't have a liquidity issue.
We have a confidence issue there's plenty of money out there there's 2.2.
Trillion dollars on corporate balance sheets.
At least two trillion if you look at the Fed's balance sheet sitting in the banks.
What are we missing were missing confidence of the average American being willing to go take a mortgage out because he's not worried about losing his job.
Or buying a new car because he can make the payments or businessman doing it capital expenditure is business because mr.
Obama's not gonna send -- off the fiscal cliff.
If we had that minister -- bank mr.
Bernanke knows we don't need more stimulus we need confidence.
And -- been -- a few fed members who.
Had doubts about the last round of intervention because you could argue.
That the last thing we knew it was more cash flooding the system but I you do then have to piece together this sort of sinister notion here that there is something else afoot and that is to just -- -- recovery that's -- to help the guy in office.
What I know I but I believe that Neil I don't think there's anything sinister about it because it follows.
That the pattern that mr.
Bernanke believes it and he truly believes in the keynesian model.
Of stimulating your way back to prosperity if you create enough money.
Ultimately the money will gain velocity and -- bring the recovery there's a problem with that -- -- All this pent up demand all these trillions sitting in balance sheets what happens when all that money hits the market.
Are we have to have inflation just like we had in 7980.
We could see interest rates have to go up to 1516%.
To battle a fifteen or 16% inflation rate and then we got a real mess on our hands -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Good seeing you know meanwhile -- --