Stock markets rallied when the Federal Reserve made it clear it wouldn't stop its practice of buying bonds with brand-new money. Stock markets have done well for the past few years, but employment, wages and new business formation haven't.
Stanley Druckenmiller, a very successful investor and major Republican donor, said on CNBC that Fed chairman Ben Bernanke's love of quantitative easing is driving that dynamic.
"This is fantastic for every rich person," he said Thursday, a day after the Fed's stunning decision to delay tightening its monetary policy. "This is the biggest redistribution of wealth from the middle class and the poor to the rich ever."
"Who owns assets? The rich, the billionaires. You think Warren Buffett hates this stuff? You think I hate this stuff? I had a very good day yesterday."
Druckenmiller, whose net worth is estimated at more than $2 billion, said that the implication of the Fed's policy is that the rich will spend their wealth and create jobs — essentially betting on "trickle-down economics."
"I mean, maybe this trickle-down monetary policy that gives money to billionaires and hopefully we go spend it is going to work," he said. "But it hasn't worked for five years."
Here's the video.