The Trade for Profit Morning Letter for Friday May 17, 2013

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Philly Fed Pres. Charles Plosser on QE: "we've dug ourselves a very large hole"

Charles Plosser, president of the Philadelphia Federal Reserve Bank, told Tom Keene and Sara Eisen on "Bloomberg Surveillance" today that..

"we've dug ourselves a very large hole" and that "when I've weighed the costs and benefits of this [quantitative easing] policy, I've decided that the costs outweigh the benefits."

Plosser also said that it is..

 "disturbing" to him that "more and more is being expected of central banks." He said, "We are expected to solve all the world's problems. Our fiscal authorities are not doing a very good job in any country."

David Zervos on QE: is "the greatest monetary policy experiment of our lifetime.."

David Zervos, head of global fixed income at Jefferies, told Bloomberg TV's Erik Schatzker and Sara Eisen on "Market Makers" today that the Federal Reserve's QE program is:

 "the greatest monetary policy experiment of our lifetime and I do not think that anyone is smart enough, me, any central banker up there" to figure out how to properly exit.

Zervos said, "I am not criticizing them, I just do not think that we know how to handle this when we need to handle it. We have never done it before and it will be a messy process."

Ken Langone on Obama Admin: "....I'm sorry to say, is anti-business"

Billionaire financier and Home Depot founder Ken Langone guest-hosted Bloomberg TV's "Market Makers" today and discussed the U.S. economy, the Obama administration, generational theft, along with Wall Street banks and director pay.

 On generational theft: "I like to get a bunch of old geezers in the room and say, you're on an island with your grandchild. You have one meal left. One of you is going to starve to death. What are you as a grandfather going to do? Everyone says, I give the food to my grandchild. They are not doing that now. We are not doing that now." 

 On the Obama administration: "I think the administration, I'm sorry to say, is anti-business. I don't know, I can't prove it, my opinion -- my gut says, 'if you're a business man, we don't like you.'" 

 On Jamie Dimon: "I love Jamie. As a person. I know him well personally. He's probably the finest CEO across any business in America and probably in the world." 

 On bank director pay: "First of all, I'm a serial over payer. Ask Elliott Spitzer. That is why he came after me. I won. I beat him bad." "I think the administration, I'm sorry to say, is anti-business.