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Well our next guest says Ben Bernanke and company that the Fed have actually got a good job in keeping the economy on track Del Monte group president Richard Del Monte joins us now.
Now Richard if you were given the federal report card you say actually -- -- some pretty but aren't some pretty high marks and keeping the economy.
Housing the banking sector and inflation back on track.
So I assume that tell you want by embarrassed arguments that says the Fed -- and -- kill this rally -- tank the economy.
No way no way -- I love all the armchair quarterbacks that have been criticizing Bernanke over the years.
Look you've got to judge them on the results they created if you look back five years ago today.
We were sitting up on the precipice of an economic collapse there's no disputing that and where are we today we've got economic growth.
It's yeah as is it perfect no it's a little bit slow maybe we'll get two and a half percent by the -- second half and hopefully 3% next year.
We've got low inflation now this is something that the people who were anti Bernanke and company.
We're we're just screaming about that that that the Q -- -- was gonna create hyperinflation.
None of that is ever happened that we actually have inflation that's extremely low today.
We've got the banking sector was on -- on the edge of getting nationalize five years ago is now doing great.
And the housing sectors recovering people are feeling more confident because our housing prices are going up and -- -- equity built up on their on their.
-- OK so why -- so many people out there Richard -- on about the war that this is all just one big hot air souffle.
Can we had created by the federal interest rates.
I think they just this this is an unprecedented program at the Fed is has put into place and they haven't seen it before but.
It has not created to convert the conditions that people have been worried about which is hyper inflation.
It just hasn't happened given that the Fed is what tripled or quadrupled the -- that the supply of dollars out there in the world because it balance -- -- up to what three and a half -- four trillion dollars.
And you would think that with that kind of increase in the number of dollars that we would have rampant inflation.
Why haven't we and is that a sign that the economy is really lacking any demand at all.
No I don't think it's a sign of that at all I think it's just I think there's a lot more resilience in the economy that people give it.
Give our economy credit for and that we have a lot of -- the Fed has had a lot of leeway to do what they wanna do -- it's worked but the tactics that worked.
Yes so we're really go from here when does the Fed start tapering I don't feel like if they cut 85 billion bond -- in September to.
Fifty billion or 65 billion I have to be the end of the world doesn't it.
No the tapered at the -- -- is a good thing people are worried about it.
I mean it means the work that the economy's recovery we're getting off life support look at the economy was that was a patient in the intensive care unit at the hospital and the doctors came units that take your mom's doing great after all these months we're gonna be able to taper off life support -- she's gonna be able to go home and a few days you would be ecstatic.
And yet look at where we are now -- -- wringing their hands about the saying the economy is getting better that's the bottom line is great news.
What is that why is there such a Malays how -- we don't get what you -- I think that they're bad people just a look for things to worry about and you know and that and that -- -- that's just the situation I think that what the market and in June when it declined substantially when they first announced -- taper.
And -- it recovered its all time highs I think probably the same thing might happen again now -- but the last couple days and today maybe they'll decline and the initial reaction.
But ultimately they'll see it as a good thing as the economy strengthens -- use actually see some glimmering some healing in Europe you say.
-- the markets realize yet that Europe may not be as bad off as everyone thought.
I don't know what the put the markets think I think that they just been trying to stay away from anything -- got -- little additional -- they wanted to go to the United States because it's looks safer like it's safer bet.
But you know to us we like we like places like the emerging markets in Europe because Europe emerging markets are such a huge disparity in performance compared to here and also that Europe is only got half the performance of the of the US market so we look at Barrett.
And we think about this great opportunities there.
Are right now accident thanks to -- list today Richard -- -- thanks Dennis.
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