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Fleckenstein - Fed Idiots Wrong, Big Problems in Europe & US
On the heels of the release of the Fed statement and the Bernanke press conference, today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get his take on the situation. Fleckenstein told KWN the economy will roll over, Europe will go into the abyss and the Fed will be forced to ease. He also described the Fed as “idiots” and said they are completely wrong about what they are saying: “Let’s take a step back for a second. Who are these people? They’re the same idiots that never saw anything coming. So whatever they think they see or whatever they want to talk about is meaningless because they are probably wrong about what they think.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
April 25, 2012
Bill Fleckenstein continues:
“For this five minutes they think the economy is okay, and it isn’t. They seem to think Europe’s kind of okay, and it’s not. So the next thing you know they will have to realize they are not so right about being sanguine and then they will have to do a U-turn.
How is that any different than what we’ve seen in the last decade?....
Continue reading the Bill Fleckenstein interview below...
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“They basically said, ‘We’re going to keep doing what we’re doing because we kind of think it’s working and we don’t think we have to do too much anymore.’ Then he (Bernanke) comes out in the press conference and says, ‘But if we have to, we will.’
So, now if the economic data hits them over the head or Europe goes down a rathole, when that happens I should say, they’ll do something. Meanwhile they are patting themselves on the back for the great job they have done so far.
The fact of the matter is Europe is a basket case, the world is slowing down and the US was artificially aided by statistical seasonal adjustments. It’s not as good as they think (in the US). They believe the data. They’re wrong. It’s going to get worse, they’ll ease and then they’ll say, ‘Gee, aren’t we smart?’
Another thing is the CPI is a ridiculous measure of inflation with all of the substitution and hedonic adjustments and the rest of the stuff. Yeah, of course gas is transitory. Remember, we look at it (the CPI) ex-food and energy. They (the Fed) always thinks inflation is temporary. This whole thing is a joke.
We know what they are going to do. They are going to ease. The economy is not that strong, the Fed is wrong. What a shock, they’re wrong. Do you remember when Ben (Bernanke) thought the subprime crisis was contained?
They don’t know anything. They’re idiots. They are the cause of the problem. So why do we want to know what the idiots think about about the current state of the economy? Why do we care that they currently think they are so smart and that everything is okay? You know what I was doing while all of this was going on? I was out playing tennis.
Given the amount of easing and the size of the fiscal stimulus, we should be having a boom. We can barely get a blip because the economy is broken and they broke it.”
The Jim Sinclair audio is also available now and be sure to listen to this week’s incredible line-up of other KWN interviews, which include Art Cashin, John Hathaway, Stephen Leeb, MEP Nigel Farage and Gerald Celente. You can listen to these interviews by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
