AN. The central bank is purchasing $85 billion of Treasurys and mortgage-backed securities a month. "The Fed is exporting this lunatic policy worldwide," Stockman told CNBC. "Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere." In the United States, for example, stock indices have risen to record highs. Foreign central banks are easing "for either good reasons of defending their own . . . trade and their exchange rate, or because they're replicating the Fed's erroneous policies," Stockman said. He cited the Russell 2000 small-stock index as an example of the mania. "It's trading at 75 times reported trailing earnings. That makes no sense," Stockman said. The global results of the easing won't be pretty, Stockma...See More
AN. The central bank is purchasing $85 billion of Treasurys and mortgage-backed securities a month. "The Fed is exporting this lunatic policy worldwide," Stockman told CNBC. "Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere." In the United States, for example, stock indices have risen to record highs. Foreign central banks are easing "for either good reasons of defending their own . . . trade and their exchange rate, or because they're replicating the Fed's erroneous policies," Stockman said. He cited the Russell 2000 small-stock index as an example of the mania. "It's trading at 75 times reported trailing earnings. That makes no sense," Stockman said. The global results of the easing won't be pretty, Stockma...See More
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