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Bernanke out by August, QE ends, rates up: Crash

Posted By admin On May 24, 2013 @ 5:56 am In Money Watch | Comments Disabled

Paul B. Farrell
MarketWatch [1]
May 24, 2013

The “Dr. Boom” scenario: America is about to “unleash a spending spree. Years of self-denial give way to pent-up demand,” predicts UBS economist Maury Harris in USA Today’s bold lead story.

His clue? Consumer sentiment: “Harris estimates that in the next five years, catch-up consumption will boost annual consumer spending growth by a half point to above 3% from about 2%.”

Reassuring? No, wishful thinking. Be very skeptical. As Robert Kuttner, author of the new “Debtors’ Prison: The Politics of Austerity Versus Prosperity” once wrote in BusinessWeek, “What do you call an economist with a prediction? Wrong.”

Harris is bucking the headwinds of history. As Jeremy Grantham, chief strategist of the $100 billion GMO money managers, recently told InvestmentNews, the newspaper of record for America’s 90,000 professional investment advisers, “3% annual GDP growth is history.”

Full article here [1]

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URLs in this post:

[1] MarketWatch: http://www.marketwatch.com/story/bernanke-out-by-august-qe-ends-rates-up-crash-2013-05-22

[2] Goldman: Treasury Yields Will Crash Because Inflation Is Dead And Bernanke’s A Dove: http://www.prisonplanet.com/goldman-treasury-yields-will-crash-because-inflation-is-dead-and-bernankes-a-dove.html

[3] Bernanke warns on deficits as Treasury rates rise: http://www.prisonplanet.com/bernanke-warns-on-deficits-as-treasury-rates-rise.html

[4] Norway Central Bank Hikes Rates By 0.25% To 1.75%, Gives Clueless Bernanke A Hint: http://www.prisonplanet.com/norway-central-bank-hikes-rates-by-0-25-to-1-75-gives-clueless-bernanke-a-hint.html

[5] Now Here’s One Big Crash That CAN’T Be Blamed On A Glitch: http://www.prisonplanet.com/now-heres-one-big-crash-that-cant-be-blamed-on-a-glitch.html

[6] The Last Housing Crash Is Not Even Over But Bernanke Is Already Setting The Stage For The Next One: http://www.prisonplanet.com/the-last-housing-crash-is-not-even-over-but-bernanke-is-already-setting-the-stage-for-the-next-one.html

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