Watch as Jim Miller of Bloomberg News, interviews Jim Tice, the chief portfolio strategist for bear markets at Federated Investors. Miller asks about the “big picture” for the market, the economy and unemployment in the future.
Tice states he believes there will be more depression to come as the dramatic aftermath of a credit bubble and too much spending hits home. Housing values are down about 35% and people who haven’t sold their homes are just hanging on because they hope the market will come back.
When asked about $52 trillion in household debt, Tice said we’ll have to work our way out. Banks will fail, some will be nationalized and a lot of people will lose money from all the credit. Tice emphasized that even with all the money spent so far, unemployment remains as high as it was before. Tice predicts the bust will be big because the excesses were big.
When asked where the inflation comes from, Tice said the Federal Reserve is too loose with credit and too comfortable with printing more money and that the government doesn’t really care if consumers can pay it back or not. Tice closed the interview by noting that many of the G-8 countries holding U.S. debts are “worried as heck about our treasuries and our currency.”
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