Jeremy Grantham gave a long interview with Maria Bartiromo, which airs tonight at 10.
Grantham, whose opinions on the Fed are well known, explains why the Fed-stimulated boom-bust cycle is coming to an end.
“In 2000 the Fed had a good balance sheet and the government had a good balance sheet. in ’08 it was still semi-respectable, and now it’s not. It’s not very respectable at all,” Grantham says in the second minute of the interview. “So what are they going to use as ammunition if they cause another bubble and it breaks in a couple of years? Then we might have some real Japanese experiences.“
Grantham goes on to give his recommendations, which include getting the Fed out of the market manipulation game.
Check out the in-depth presentation: Is America Turning Japanese?