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United Advisors Chief Market Strategist Scott Martin on how the Federal Reserve's latest actions impacts consumers and investors across the country.
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Well in focus tonight how the -- -- to inject more money into our economy will impact you the consumer.
And the average investor here to break -- -- down Scott Martin the chief market strategist of the united investors.
Got -- like this why.
Jerry look I think this is all about commodities not so much the market and listen like everybody else I like the market going -- I'm not a hater.
With regards to equity prices but I'll tell you the story to me -- commodities.
All come -- not just gold and still -- but if you look at lumber steel aluminum.
All -- ahead of the Fed move yesterday in the last couple months are -- big this means higher prices for consumers higher prices for companies I think it's a job killer.
Why -- job killer I don't get that that's exactly what Ben Bernanke is trying to target he says he wants to bring the unemployment rate down.
Yeah and that's why I think -- super dangerous ground because you know what unemployment is only getting a lot that the Fed.
Prints more money because just I was saying commodity prices go up if your company.
And you're buying input your buying things that going to making -- products.
What happens when prices go up Jerry your profitability gets hurt you -- do you do one of two things you raise prices on the consumer or you fire people but it does profitability -- -- have both bad outcomes.
I also want to ask you about the impact on housing now.
Federal Reserve Chairman says he wants to help the housing market by gonna tell -- I don't see people cry in over their milk about.
Interest rates for mortgages at 3.5 percent.
No he talked about this yesterday I think you're absolutely right that the mortgage rates are low enough as it is the housing market.
Listen why don't think it's getting any better I don't think it's gonna get much worse in keeping rates this low Jerry is completely artificial as you pointed out yesterday and I think that's totally correct.
You -- rates are out there interest rates of people understand are out there.
To basically assess risk right if something has a higher rate that's supposed to tell investors that it's risky if you're artificially pushing rates down people can -- the correct risk.
Wow OK so without -- market go up is gonna continue going up on the basis -- this fed action.
I think it well because Ben Bernanke is serving more -- at the bar than we even body had that's good for people in the near term right because it's all enjoyable I have that stuff.
The hangover is bad eventually likes you and Stephen -- said earlier.
You have to pay for this you need growth we don't have it.
How does that unwinding happen in are they gonna be unintended consequences.
To unloading all of the stimulus I mean we have so much baked into the pyrite -- We had ten -- its right.
A total of -- at that since September 2007.
QE1 QE2.
Operation Twist now QE3.
At some point you have to take it all back that should be pretty thankful -- bank.
It should -- it feels like it's never gonna and Gerri we've got ten to fifteen here Europe's Scott going on maybe 45.
But everybody seems to be doing -- so why can't we eventually it does stop jury but for now enjoy the party let the music play.
Now the way.
Spoken like Sonya it's always like got a nice guy got to tell yes.
I enjoy it while you can dance while you may have a good night and thanks for coming on tonight and have a great frontier.
