Richard Russell, the bearish technician behind the Dow Theory Letters, has long been a critic of Federal Reserve Chairman and his easy monetary policies.
With Barack Obama securing a second term in the White House last night, it’s looking like Bernanke will be around for a lot longer.
“By creating multi-millions of additional dollars, the Bernanke Fed has knocked the dollar down,” writes Russell in King World News. “But due to weakness in other major currencies, the dollar (which is now oversold) has rallied over the last day or so.”
Russell writes in King World News that this is causing asset bubbles everywhere:
Meanwhile, the price of art, medicine, college tuition and food is going through the roof. In fact, we are seeing bubbles in a great many areas. The yield on the Dow is 2.56%, far below the classic danger level which is 3.5%. According to the yield cycle, the stock market is in a dangerous bubble. And with bond yields tanking at unbelievable low rates, the bond market is also in a bubble.
Art is in an insane bubble with many classic pieces going from $35 to $50 million and up. The price of highly desired items such as classic cars is off the charts. Choice collectibles are in a bubble. Almost every business transaction is listed in the billions — whatever became of thousands? Wall Street and businesses, in general, are in bubbles.
“In short, we live in a multi-bubble world, a world that the Bernanke Fed has created,” he writes.
Read more at KingWorldNews.com.