Billionaire Howard Marks of Oaktree Capital is one of many confident that the U.S. won’t have a “QE3,” according to Dealbook, which has a rundown of the comments he made at the SuperReturn conference in Berlin recently.
His reaction to no QE3: To be “cautious” in the market.
(That’s an understatement, according to the book he’s co-writing about how the world is doomed.)
“I’m quite confident we won’t have a QE3, since I don’t think there’s any appetite for that, and this is what starts us on the path of restoration to market-derived interest rates rather than artificially low interest rates.”
“That is a healthy thing as we wean the patient off of life support, but it is uncertain. To carry on the patient analogy, the patient will be a little woozy and a little shaky when he first gets out of bed.”
Note that this is very similar to what Bill Gross said yesterday about what happens when QEII runs out.