Druckenmiller Blasts “The Biggest Redistribution Of Wealth From The Poor To The Rich Ever”
by Tyler Durden
ZeroHedge.com
09/19/2013
Reflecting on exactly what was said yesterday, Duquesne’s Stanley Druckenmiller is initially perplexed as Bernanke explained ‘financial conditions’ – not interest rates – have prompted the decision to forestall any taper. His confusion is that financial conditions are actually slightly better than they were in June and “a stock market at an all-time high would suggest we don’t have a problem with financial conditions.” While he dismisses surveys, the big-money was betting that they were going to taper as is clear from the moves in gold, bonds, and stocks; and it appears the Fed “lost their nerve.” In fact, Druck continues, the Fed “blew it… they had a freebie,” they could have started the process to “get us off the dope.” This action, or inaction, he warns “is going to make it so much harder for the next Chairman to start the process.” In fact, he concludes, that from beginning to end – once markets adjust from these subsidized prices – that the wealth effect of QE will have been negative not positive.
The Rest…HERE
