Money manager Axel Merk thinks new Fed Chief Janet Yellen can’t do much to improve the labor market even though she claims she’s most interested in helping Main Street, not Wall Street. Merk says, “Yellen is from Berkley, our neighborhood, and it’s all about warm and fuzzy feelings. Ultimately, of course, there is only so much the Fed can do for Main Street.”
Merk says, “Home price inflation is not sustainable. It’s a very fragile policy because it can evaporate at any time. The moment the ‘taper’ talk started, new home sales, existing home sales deteriorated because, guess what, as interest rates move up, you have to pay more for your home.”
On the possibility that the economy could suddenly collapse, Merk said, “What could possibly go wrong when the stock market goes up every day? Asset price inflation means asset price inflation can reverse. You can have a collapse in asset prices at any time. You saw it in gold a little bit in April of last year. There was just no bid out there. The same thing can happen in the equity markets.”
Merk says he holds core assets of physical gold and silver, “mostly gold.” Join Greg Hunter as he goes One-on-One with Axel Merk of MerkFunds.com.
From Greg Hunter, USAWatchdog: