Hedge fund manager Paul Singer, who runs Elliott Management, said that we have an “unfair” and “distorted” economic recovery on Thursday at the Dealbook Conference.
He blames the Fed for this.
Singer has been critical of the Federal Reserve’s monetary policy, particularly in his letters to investors.
“We do not think this optimism is warranted,” he wrote in a recent letter. “We think a lot of this data is cooked or misleading…”
He still feels the same way.
We just added 320,000 jobs in the latest jobs report for November.
He said that the jobs number is “part of the distortion.”
“It’s one of the misleading, fake economic figures.”
Singer said that since the crisis, we’ve had basically 0% interest rates everywhere in the developed world. That, along with quantitative easing, has been the principle for growth.
“What that has created is a series of distortions and an unfair recovery. A distorted recovery meaning the beneficiaries of the asset price levitation are bond holders, stock holders, investors. The middle class is not doing great.”
Sorkin asked Singer if the Fed should be blamed for income inequality.
“My answer is yes.”
He called them “enablers.”
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