Joseph Trevisani, senior analyst at FXStreet, held a conversation with Boris Schlossberg of BK Asset Management who believes zero rates are here to stay and the Fed steps are not benefitting general society.
Key quotes
“Everything is looking like Japan – EXCEPT that Japan is a highly disciplined society and the US and EU are hardly that. So we don’t even have highways to nowhere, just potholes.”
“Easy money only works if it’s distributed as a social good. What do you think is better for society? S&P at 1500 and every bridge/highway speed train working at 21st-century levels or SP at 3000 and nothing working. That is the reality of our life today and as Herb Stein who used to advise Richard Nixon said, if something is unsustainable it cannot be sustained. ”
“They are actually the last adults in the room – Ironically enough the unelected officials of the Fed are far more responsive to society’s needs than the elected politicians. They have been putting a band-aid on all our ills for quite some time. Yes that was the FIRST proper act of fiscal policy and it took near-apocalyptic conditions to get everyone on board. That is why markets are bid.”
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