Steve Romick

FPA’s Steve Romick is out with a new article blasting Federal Chairman Ben Bernanke. Steve Romick joins a growing chorus of famous money managers who believe that the Federal Reserve’s policies are unwise and possibly reckless. Famous investors from across the political spectrum seem united in their opposition to quantitive easing. Some of the recent voices opposing Ben Bernanke include, Seth Klarman, David Einhorn, and John Burbank. We have covered their commentary about the Federal Reserve from their third quarter letters’. Steve Romick believes that the Fed’s current actions could lead to the US losing its reserve currency status. Below is a brief excerpt followed by the full document in scribd (H/T Value Investing World) :

Which leads us to the blind faith placed in our current Federal Reserve Chairman Ben Bernanke. Mr. Bernanke told us in 2006 “that house prices will probably continue to rise,” and that he did “not expect significant spillovers from the subprime market to the rest of the economy or to the financial system” in 2007.1 In 2008, he then told us that Fannie Mae and Freddie Mac were “adequately capitalized (and in) no danger of failing” and that the “Federal Reserve is not currently forecasting a recession”.2 And, in 2009, he said “The Federal Reserve will not monetize the debt.”3 A good education, deep experience, and a nice title don’t make you right. Our leaders in Washington seem to have recklessly accepted Fed decisions that threaten the delicate weave of economy and society.

Blind Faith Final 10-31-12