Erik Schatzker: "How close are we to a bear market?" (21:25)
Stanley Druckenmiller: "As long as the Fed is printing money, not very close. That's why the issue of tapering and where we go with it is so important. I don't really care whether we go to 70 or 65 (billion) in September. But if you tell me QE is going to be removed over 9 or 12 months, that's a big deal because it's my belief that QE has subsidized all asset prices and when you remove that subsidization, the market will go down."
Stanley Druckenmiller: "My first mentor and boss (Speros Drelles) in Pittsburgh used to tell me it takes hundreds of millions of dollars to manipulate a stock up. But the minute you have this phony buying stop, it can go down on no volume and it can just reprice immediately. I personally think as long as this game goes on, assets will stay elevated. But when you remove that prop - and let's face it, the Fed has said they are targeting asset prices - those prices can adjust immediately."