Stanley Druckenmiller: QE Has Subsidized All Asset Prices, Market Will Go Down If Removed, Thinks Market Is Topping

Stanley Druckenmiller, "the man who broke the Bank of England with George Soros" and founder of Duquesne Capital Management LLC, told Bloomberg TV's Erik Schatzker and Stephanie Ruhle on September 11 that he believes "the market is topping" (17:26) and once the Fed removes QE (the asset price subsidy), asset prices could "adjust immediately" to the downside. But he said "as long as this game goes on, assets will stay elevated." Read more quotes below. In the beginning of the interview he talked about generational theft.

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."


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