The Japanese QE experiment, Rickards on China and Merkel on investing
Just yesterday, we told you that QE was done – the Fed closed the door on its third program of large scale asset purchases to expand its balance sheet and QE3 was history. However, as the Japanese show us, QE is an economic policy zombie that no amount of garlic protection can prevent from rising up again to work its magic on our global economy! Erin weighs in.
Then, Erin talks to Jim Rickards –chief global strategist at West Shore Funds and author of The New York Times bestselling book "The Death of Money." Jim tells Erin how far Chinese growth will have to fall in order to make successful rebalancing a possibility and gives us his prediction on what will happen if oil prices continue to stay weak.
After the break, Erin sits down with David Merkel, founder and president of Aleph Investments. The top 449 companies in the S&P 500 spent $2.4 trillion – more than half their profits – on buybacks between 2003 and 2012. David tells us what he thinks is the driving factor behind this and gives us his top macro investment ideas for the next few years.
And in The Big Deal, Erin and Edward Harrison talk about Japan.
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