IceCap Asset Management On The Money Printers

From Keith Dicker, CIO of IceCap Asset Management

With the QE2 announcement now out of the way, Mr. Bernanke’s game plan is as follows:

  1. Lower interest rates for “everybody“ and “everything”
  2. Stocks & Bonds will then increase in value making “everybody” and “everything” feel wealthier
  3. “Everybody” will then start to buy “everything”
  4. Pray that the price of “everything” doesn’t increase too much and therefore cause “everybody” not to buy “everything”
  5. If steps 1 to 4 are successful, businesses will begin to create jobs for “everybody” because they will once again be buying “everything”
  6. Ignore the housing market problem
  7. Ignore the debt problem
  8. Ignore the effect of numbers 6 & 7 on the banks

Pray that foreigners continue to buy newly issued American debt Simple enough. But wait, this is where it becomes interesting.

November 2010: The Money Printers (pdf)


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