Since 2007, we’ve seen the markets artificially “propped” up by massive amounts of money printing by the Fed. Is this just adding fuel to the fire that could burn investors?
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Announcer: Since 2007, we've seen the markets artificially "propped" up by massive amounts of money printing by the Fed. Is this just adding fuel to the fire that could burn investors?
David Wiedemer: We are living in a stock bubble and that is very dangerous. The problem with it of course is what we talked about earlier and has since happened is to keep it up the Federal Reserve System will print money, a lot of it. That is the big danger, because with money comes inflation. People understand intuitively that money printing will cause inflation. They will say, "No it doesn't," but if that was the case we could eliminate most of our taxes. We could do all sorts of infrastructure improvements. There's many, many things we could do if money printing doesn't cause inflation. People don't...they...they...they say, "Oh no we can't do that." Well, so what we're moving towards is what I call, "a sort of delusional thinking, where people feel we're printing just the right amount--not too much, not too little--and that makes us safe and it doesn't. We're still in a very unsafe situation and that's what I want to help people understand is… this is a dangerous situation. Many of these people have worked very hard for their wealth. Some of it is generations old. We don't want to risk this. They don't...they should not risk this hard earned wealth. That's the message I want to get across. We need to protect it. We need to increase that wealth and not...not risk it on careless Fed actions.