“We could be in for a couple more years of sluggish growth” and that he is “increasing the balance sheet…not anywhere decreasing it yet.”Laker went on to say, “I’m fine with us tapering off right now.”
On the Fed’s communication with the markets: “It has been a rocky period over the last couple of months in terms of communication from the fed… We had to solve the new communication puzzle first.”
Marc Faber, publisher of the Gloom, Boom and Doom Report, told Bloomberg Television's Trish Regan and Tom Keene on "Street Smart" today that believing in Ben Bernanke is like believing in Father Christmas. He said:"If you say that if he means what he says, then you believe in Father Christmas… As I said already three years ago, we are going to go with the Fed to QE99."
Faber also said:
"I think the market is on the high side, corporate profits are inflated and we could easily, from the recent high, May 22 at 1687 on the S&P, drop by 20% to 30%, easily."
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"The S&P 500 futures are slightly higher this morning to 1589.50 up from the 1577 low yesterday. The ES was trading around 1598 two hours ago but has since melted 10 points lower seemingly on zero news as there is not one iota of data on tap for today beyond quad witching.
“I don’t reward or punish politicians. It’s not my job. I’m only one vote, but that of my family. I do support a lot of politicians, but I do so because of their ideology and their sharing of values with me… I am not trying to be a dictator. I’m trying to live my live as a normal person.”
"The market basically has misinterpreted the growth and the unemployment targets while leaving out the inflation targets going forward…This is a combined growth, unemployment and inflation type of combination that has to be delicately managed."
Gross said that he thinks Bernanke "might be driving in a fog" and on Janet Yellin, he said, "I think she is a Siamese twin in terms of policy."
Blackstone chairman Steve Schwarzman told Bloomberg Television's Erik Schatzker and Sara Eisen on "Market Makers" today that he gives the U.S. economy a "good grade" and that "there are some real pockets of strength."
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"There certainly seems to be an acute fixation on the timing of any adjustment to the asset purchase program and I guess I would just encourage everyone to not lose sight of the bigger picture."
"Any adjustment is not a major policy shift. The high level of accommodation will stay in place."
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