Mario Gabelli Tells Fox Business That Economic Improvement In The U.S. Has Hit "A Short-Term Hiccup"

Chairman and CEO of GAMCO Investors Mario Gabelli spoke with FOX Business Network's (FBN) Connell McShane and Dagen McDowell about the economic climate in the United States amidst the turmoil in Japan, Libya, and Egypt. Gabelli said that “QE2 is alive and well and is working” and it is what is keeping the U.S. economy “afloat.” He goes on to say that the crisis in Japan makes it clear that the U.S. needs to “become energy independent” and he believes “we need to have all of the scientists in the world focused on an energy policy.” Excerpts can be found below, courtesy of Fox Business Network.

On his outlook for the economy:

“The super pumper that is keeping everything afloat is what Bernanke was doing; QE2 is alive and well and is working, however there is no question that food and fuel are a very major headwind. It's a psychological hit. The concept that the economy was improving has a short term hiccup.”

On the potential nuclear crisis in Japan:

“Coming on top of what was happening in the Mideast, you have to say we were counting on nuclear power to be the source of fuel and energy for the next five or ten years. Now that is in question. So we have to get back to basics. We need to become energy independent. We need to have all of the scientists in the world focused on an energy policy. In the investment world we already started buying natural gas because its politically safe.”

About the political unrest in Egypt and Libya:

“The United States is so far one of the few places where democracy has worked. The rest of the world it's a work in progress. You cannot change things over night.”