This most recent weekend the Robert McTeer private client event occurred. We will speak in much greater detail in our coming mid-year Newsletter but we wanted to hit a few of the high points while Mr. McTeer’s words were still fresh and the current economic situation most unchanged.
We also wanted to have a special thanks to clients, friends, and the party crasher, who actually asked a good question, but remains unidentified. Thank you all and you too party crasher!
Donald and I compared our three high point notes, and with only one overlap, will bring you the top five with the first point being our collective overlap:
- The Fed’s credibility is key to holding current rates low. The natural inference would be that if the Fed lost credibility rates may move. I asked Mr. McTeer a direct question and will expand his thoughts in our Newsletter (DC & JK)
- Inflation in not inevitable (DC)
- The Tax Cliff of possible increased taxes and lowered government spending is estimated, by Mr. McTeer at a 7% GDP hit. Yes you read that correct, SEVEN PERCENT! (JK)
- Banks parking excess reserves at the Fed may prove a target for money supply fans. i.e. Get the money moving out of the Fed to get the economy moving (DC)
- “Those betting against Bernanke’s intelligence will lose!” A direct, unsolicited complimentary quote from McTeer (JK)
Great questions, great time, and great fun. We thank you all as we filled less than 90 minutes of a saturday into hard-core economic discussions.
Thanks Again to everyone !