Business Insider: Billionaire Investor Leon Cooperman Says Fed Relief Efforts Have Created a 'Speculative Bubble'

August 25, 2020

Article by Emily Graffeo in Business Insider

Cooperman emphasized that the US has piled up $21 trillion of debt in its 244 years, and said it will probably end 2020 with $27 trillion in debt.

"That is a growth rate in debt far in excess of what the economy is growing at and I think that's going to be a problem down the road," he said.

Cooperman also said that the US has had artificial support for the economy since 2008, and he sees this as a negative.

The Federal Reserve cut its benchmark interest rate to near zero in March to soften the economic fallout of the pandemic. Cooperman said low interest rates are indicative of a problematic economy, and that zero interest rates are creating a "very speculative tone to the market." 

"What I've not fully appreciated is what a zero-interest rate environment does for stocks.

"I'm concerned about financial conditions ...

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