Tepper Comments Underscore QE Danger: Traders

Tepper bullish...but what does it say about moral hazard?

Hedge fund manager David Tepper, on CNBC, has sparked an interesting debate among traders.

Tepper is bullish on stocks and feel the risk reward is on the upside. Why? Because the Fed is your friend. Quantitative easing (QE) is going to trigger a move out of bonds and into stocks.

Here's a sample of what he said on our air:

"Either the economy is going to get better by itself in the next three months and what assets are going to do well? You can guess the assets. Stocks are going to do well. Bonds won't do so well. Gold won't do as well. Or the economy is the not going to pick up in the next three months and the fed is going to come in with QE. Then what's going to do well? Everything. In the near term, everything."

But a number of traders say this is exactly the problem:

"If Tepper on CNBC didnt just wake up the Fed to the moral hazard of QE I dont know what will," what trader said. "Is this the creation of expected inflation or are they generating stagflation through their communique?"

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