Gary Kaminsky is the incoming Vice-Chairman of wealth management at Morgan Stanley.
In this interview he states:
"Interest rates will have to go up at some point."
Yes, when the Fed raises them, Gary.
"The Fed's actions have penalized savers."
What about "savers" in the stock market? What about debtors? It has helped them.
"Those that follow the rules are being penalized."
What rules? Isn't buying stocks when interest rates are falling a rule? Isn't refinancing your home when interest rates are falling a rule? (Or good advice, at least.)
"Nobody knows when rates are going to rise. The Fed has had an impact."
I know, Gary. Rates will rise when the Fed raises them, just like you mentioned: "the Fed has an impact."
"I don't know when. I don't think anybody knows."
Yes, I know, Gary.
"Rates are artificially low." (A Peter Schiff line if I ever heard one.)
On the contrary, zero-percent is the norm. High rates are artificial.
The next Vice-Chairman of Morgan Stanley, who doesn't seem to know much of anything when it comes to the markets.
The endless capitalist search for free money.
ReplyDeleteMaybe more of these "wealth managers" should tell their clients that if they want to build their wealth, they should go out and actually produce something themselves, rather than just looking for ways to buy shares in what other people have produced.
Great point!
ReplyDeleteLOL Mike,
ReplyDeleteAnd once they start to raise rates and stop buying the new UST issues, it's going to be bullish anyways as interest income is going to increase Net Withdrawals to the non-govt sector....
But Bernanke seems like he is years away from contemplating an increase as under his monetarist tenure, the US economy has not added ONE net job yet... what a disgrace... so he continues to keep his foot tramped down on what to him is the accelerator when it is the brakes... and scolds Congress every chance he gets to get their fiscal house in order and get fiscal on a 'sustainable path'....
(btw thru march 21st pushing 300B on Net withdrawals and deficit at 80B... looks good for rest of this month fiscal-wise...)
rsp,
Dan,
ReplyDeleteProducing something for themselves involves risk.
Vice chairman of Morgan Stanley doesn’t know anything? Sounds a bit like the director of Bankia who said she didn’t understand accounting:
ReplyDeletehttp://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9663242/Former-Bankia-director-admits-she-didnt-understand-accounts.html
Modern capitalism means managing other people's risk, not your own.
ReplyDeleteThe next Chairman of Vice at Morgan Stanley doesn't NEED to know much of anything when it comes to the markets - he only needs to know who he's working for, and whose risk he's managing. PT Barnum knew that. Just gotta put on a good show for the muppets.
"But Bernanke seems like he is years away from contemplating an increase as under his monetarist tenure, the US economy has not added ONE net job yet... what a disgrace... so he continues to keep his foot tramped down on what to him is the accelerator when it is the brakes... and scolds Congress every chance he gets to get their fiscal house in order and get fiscal on a 'sustainable path'...."
ReplyDeleteIn other words, "Beating will continue until morale improves."