Tuesday, January 26th, 2010
Some worry Washington actions may create a new bear market. But Dick Bove, financial strategist at Rochdale Securities, fears the worst: He warns that America’s government may instigate a full-fledged market crash. Bove offered CNBC his insights — and named bank stocks that are still strong investments.
“We all agree the market is driven by money. If the money supply increases, the money gets into the market and stock prices go up,” Bove noted.
“But last week, what we saw was a shot at both of the areas where money creation occurs in the United States.”
“On the one hand, we were talking about getting rid of Mr. [Fed Chairman Ben] Bernanke. Mr. Bernanke represents an easy monetary policy.”
“When the people find they can vote themselves money, that will herald the end of the republic.” – Fall Of The Republic – Buy the DVD here