Uwe Parpart of Cantor Fitzgerald spoke to CNBC Asia this morning about the impact of the QE2 decision on emerging markets.
- 0:30 In the short term the Fed’s decisions are having the desired impact.
- 0:45 Quotes Geithner, who says you can’t devalue yourself to prosperity, implying the U.S. is trying a similar move.
- 1:10 The only thing on the table right now is liquidity.
- 1:50 The U.S. can’t change public perception of what they are doing, because, well, it’s working.
- 2:20 The liquidity from QE2 is not going to get into the real economy or create jobs. It’s just going to create bubbles and encourage capital controls and currency intervention from other economies. QE2 is on the verge of causing a protectionist global environment.
- 3:15 The party will come to an end; the Fed money is flowing to EM, not to the U.S. This is a lot like 1995-1996 (pre-Asia crisis).
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