No wonder America is losing more and more of the wealth pie to Asia. This quote from David Rosenberg pretty much speaks for itself:
“Brian Sack at the New York Fed stressed the need for the Fed’s actions to bolster asset inflation as to boost the wealth effect on spending (QE “adds to household wealth by keeping asset prices higher than they otherwise would be…”). We just can’t seem to wean ourselves off this asset-dependent economy — and how directed by a Fed official that the attempt here is to bring asset values above their intrinsic value. Amazing way to run an economy. Whatever happened to skills, productivity, education, job creation, innovation? Or thrift — when did that virtue become a dirty six-letter word?”
I’m thoroughly disgusted with the response of government over the last 24 months….
Source: Gluskin Sheff