Guggenheim’s Minerd Says Fed Will Face 'Day of Reckoning' Over Asset Purchases

Jun.03 -- Scott Minerd, chief investment officer at Guggenheim Investments, discusses the impact of the Federal Reserve's efforts to stabilize the U.S. economy on credit markets, corporate debt, and defaults. He speaks with Bloomberg's Sonali Basak on "Bloomberg Markets."

[chaoticrealm]

They need to let failing businesses fail, exactly like how capitalism is supposed to be.
Leave the strong, more responsibly run businesses to thrive.

[postscript]

Minerd is speaking truth. He is actually understating the problem.

[slovokia]

It is definitely a privilege to be able to continually borrow money that you never have to pay back. Imagine how angry people will get when inflation starts to heat up - especially if they never got any of that free money in the first place.

[gaylewilliams]

The markets are already addicted to artificially low interest rates, and QE.

[brandondorsey]

"Flirting with moral hazard"? 😂😂😂😂😂😂😂😂😂😂

The Fed has gone past flirting and straight to a long term relationship with moral hazard.

[smallfry]

Hats off to Scott Minerd. He has nailed it so far. Nice place too! It's good to be King. Thanks for the analysis.

[ronaldevans]

Corporate America is "going to become addicted". Lol. It's been in and out of rehab for 12 years.

[josephduncan]

"Addicted" is a good description but "dependent" is probably even better

[jake]

I am a simple man I see Scott minerd I click.

[sapatos]

As an investor I am looking for bargains in the middle of a recession, but I just cant find it. Hilarious.

[djames]

The Fed's day of reckoning what?

Nope, it is not the Fed!
It is the people who will face the day of reckoning.

[Radnally]

Fed balance sheet = where bad debt goes to die

[kurtproton]

"Ultimately the role of the Central bank is to finance the government". i.e. not Wall Street.

[xbulsara]

American capitalism is a house of cards built by card sharks.

[barbaraherda]

4:30 The rating agencies WORK FOR the Fed Res. Why does this guy not know this with all the evidence available?

[postscript]

I am very surprised and very gratified to hear a financial analyst state the obvious: Capitalism and the free markets are being jeopardized. I've watched this for a couple of years now (at least). Of course the speed has increased astronomically. Sad. My thanks to Minerd for his honesty.

[mikem]

Thank you Scott, an honest and a realist that has the guts to stand and speak out against the fed who is literally bailing out Wall Street again and creating this chaos without the unintended consequences of the future which will be paying dearly...👍👍

[ezza]

It's a shame that the part of the video from 5:08 to 5:38 was removed.

[Pietro]

Powell said that they have crossed many red lines and that they will deal with issues as they come up. What a great plan, a Hail Mary for the world economy.

[libertysprings]

And according to the 2011 U.S. Census Bureau’s Statistics of U.S. Businesses, firms with zero to four employees accounted for only 5.2 percent of all employment. In contrast, firms with more than 500 employees accounted for 51.5 percent of all employment. In addition, many if the smaller businesses are being paid by the bigger businesses rather than directly by a customer, such as the chicken farmers paid to grow chickens by Tyson etc. The small farmer takes on all the debt of building the chicken houses etc so that debt wont be on the books of the bigger corporation.