On the pages of WSJ, no less.
I have been one of the biggest supporters of Bernanke (here, here and here) in terms of both the remedies he used in the aftermath of the crisis and, as an extention, being long stocks for the last 3-4 years. Inflation is non-existent, QE helped asset prices rise and keep yields low, banks are flush with cash. Bernanke is becoming a legend.
Now, many say that he can’t dispose of those assets purchased without doing damage to the economy and driving the inflation up. But why is he’s receiving so little credit? Do they just expect him to dump the entire porfolio on the market in the matter of days? And secondly, if it drives inflation up a bit – it will only indicate a growing economy, or in simpler terms, more money chasing fewer goods – a scenario that we all should welcome. Wild-eyed inflation hawks, of course, envision Zimbabwe-like scenario where we push wheelbarrows of cash going grocery shopping. My only answer to them is: put your money where you fear is. Put the freaking inflationary position, like PIMCO did many times, and show us all how it’s done! Make some money on your sentiment.