Paul B. Farrell: Bernanke out by August, QE ends, rates up: Crash
Bernanke out by August, QE ends, rates up: Crash
Commentary:
Prepare now because easy money will dry up
By Paul B. Farrell,
MarketWatch
SAN LUIS OBISPO, Calif. (
MarketWatch) 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 Todays 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 Americas 90,000 professional investment advisers, 3% annual GDP growth is history. ....................(more)
The complete piece is at:
http://www.marketwatch.com/story/bernanke-out-by-august-qe-ends-rates-up-crash-2013-05-22?link=home_carousel