by Bill Bonner, Daily Reckoning.com.au:
Want to know why Bernanke won’t stop QE & ZIRP? Because they don’t work. From CNNMoney:
‘Don’t worry about rising rates, say legendary bond investors Jeffrey Gundlach and Dan Fuss…
‘Doubleline Capital’s Gundlach and Loomis Sayles’ Fuss say the recent rally in yields is unlikely to continue, thanks to the Fed.
‘Both say the Federal Reserve will make sure that any rise in rates will be slow and controlled. Gundlach and Fuss said that the consequences for global markets and the economy will be dire if the central bank fails.
‘“People have been saying that the Fed thinks the economy is self-sustaining, and that means lack of support for bonds,” said Gundlach. “But the whole structure of the financial markets has been balanced on top of low interest rates.”’