Gold-bullish hedge-fund titan blasts Fed's"unimaginable"QE3 spree
Manhattan,New York,United States of America
October 25,2012--Hedge-fund manager David Einhorn raised concerns about the U.S.central bank's latest round of stimulus,saying Federal Reserve Chairman Ben Bernanke"announced desperate measures in non-desperate times."
"What once looked like a purchasing spree of unimaginable proportions is now just the monthly budget,"Einhorn said in a quarterly letter to investors dated Tuesday.He runs the$7.7 billion Greenlight Capital hedge fund firm and is one of the industry's best-known managers....
Einhorn asked what tools the central bank and Congress would have if the U.S.economy goes into another recession,which he said would occur"sooner or later."
"When(the recession)comes,it is very likely we will enter it prior to the Fed having'normalized'monetary policy,and we'll have a large fiscal deficit to boot,"Einhorn said in the investor letter,which Reuters reviewed."If the Fed is willing to deploy this new set of desperate measures in these frustrating,but non-desperate times,what will it do then?"
Although Einhorn said he did not have the answer to that question,he said allocating a large part of a portfolio to gold still seemed like a"a very good idea."
