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Tuesday, September 02, 2014

Hussman: 'QE Is Not Life Support' for US Economy

The widening gulf between Wall Street and Main Street, in which one prospers while the other slowly withers, can be laid precisely at the feet of the Federal Reserve, according to perma-bear fund manager John Hussman.

Hussman, founder of the eponymous Hussman Funds mutual fund family and a frequent central bank critic, says in his latest market commentary that years of suppressing interest rates by the Fed has produced an economy in which financial transactions are the major source of growth.

"So what we now have is a financial sector amped up on more than 4 trillion tablets of amphetamine, and a real economic sector that remains at year-to-year growth rates that have historically marked the border between expansion and recession," he writes.


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