Kathy Lien is head of currency strategy with BK Asset Management. (I wouldn't want her giving me strategy. Kathy should take my course!)
Anyway, in this video on CNBC (where else) she is bleating about how the Janet Yellen should reconsider "taper" given the mixed economic data.
It's pretty clear right here that she's another one of these analysts who doesn't know what she's talking about. (However, that doesn't stop BK from paying her a multi-million dollar annual salary.)
Hey, Kathy, taper or its inverse, QE, are just asset swaps: reserves are swapped for reserve equivalents or vice-versa. They do nothing for demand and, therefore, nothing for the economy.
Even worse than Lien is the guy interviewing her (a CNBC host, what did you expect?) who says, "Well, at least the Fed will get some help with interest rates because now that the government deficit has shrunk so much the Treasury will not have to issue so much supply and that will keep rates low.
These people are like the quack "physicians" of the 19th century. Their diagnoses and snake oil remedies can kill.
Somebody shoot me, please!!!
JUST REPORTING FROM FAMILY IN ARGENTINA :
ReplyDeleteprice of a dress: $1000
milk gallon : $25
Meat : doubled
Hyperinflation has hit.
My prediction came true !
They are going to drive up prices and break into a new currency float as we speak !
Will this be a contagion that spreads or just busts up Argentina.
Same for Venezuela supposedly.
ReplyDeleteKathy Lien ...the problem is that she sounds too confident about her predictions... very often fails... and then continues to make further predictions without even explaining about the failed predictions...