Strategist: World On The Verge Of Great, Great Depression And The Fed Knows It
Gold spikes on grinding economic halt, coming Fed QE3
June 1, 2011
A notable market strategist has told CNBC that the world is on the verge of the largest financial meltdown in history, warning that Wall Street is at a loss as to what to do regarding the ailing economy.
“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” said Peter Yastrow, of Yastrow Origer.
“We’re on the verge of a great, great depression. The [Federal Reserve] knows it.” the futures trader added.
“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.”
Yastrow described betting against the U.S. economy as “a huge mistake”, adding that he would not sell stocks at this point.
Any bears out there better be careful because the dividend yields on these stocks look awesome relative to all the other investment vehicles out there,” Yastrow said. “So bears are going to have to find a new way to express their discontent with the U.S. economy.”