Does this make sense to you? Please comment either way.Conservative Tom
WALL STREET LEGEND WARNS: A ‘STORM’ IS COMING
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Noted hedge fund manager Stan Druckenmiller, 59, on Friday warned that the U.S. economy is headed for a “storm” that could prove to be far worse than the financial meltdown of 2008.
But first, if you’re not familiar with his name, here’s what you need to know: He’s one of the most respected and successful hedge fund managers in the past 30 years.
Obviously, you don’t achieve that type of success (or notoriety) on Wall Street by running your mouth. That being said, if Druckenmiller, a former partner of billionaire liberal philanthropist George Soros, is predicting serious economic trouble for the U.S., perhaps we should listen.
“I see a storm coming, maybe bigger than the storm we had in 2008, 2010. And really, the reason could happen without people looking as for a lot of similar reasons that we could get into,” he said during an interview with Bloomberg TV’s Stephanie Ruhle.
“But the basic story is, the demographic bubble I was looking at way back in ’94 that started in 2011, we are right at the first ramp-up of this thing that is about to hit,” he added.
His comments were made during a larger discussion on the dangers Social Security, Medicare Medicaid, and unfunded liabilities as high as $211 trillion, pose to future generations.
“I think people like me and others need to speak out. It’s about the future, not about the present where the problem is,” he said.
“While everybody is focusing on the here and now, there’s a much, much bigger storm that’s about to hit,” he added. “I am not against seniors. What I am against is current seniors stealing from future seniors.”
Watch the Bloomberg TV interview here.
However, if it’s any consolation, Druckenmiller isn’t totally without hope. Indeed, he actually thinks the U.S. has a chance of turning this ship around.
“With the proper education and with proper voices out there, we could have 40 million kids marching down to Washington,” he said.
Yeah, right. Who caused the 2008 worldwide financial collapse?
ReplyDeleteWe shouldn't be asking Wall Street hedge fund managers to answer the question. That is like asking the fox "Who ate the chickens?"
Clue: Who took all the money? The Wall Street hucksters are the people future generations should be fearing, not seniors on Social Security.
--David (OWS)
"The Securities and Exchange Commission and FBI have opened investigations into the incident."
ReplyDeletehttp://news.sky.com/story/1064977/jp-morgan-slammed-in-london-whale-report
Will anybody at JP Morgan go to prison? No. They are "too big to jail" even with a 300-page report documenting securities fraud. Same as John Corzine. It makes me sick. The "London whale" increased his derivatives portfolio holding by $100 billion in less than one quarter, and yet the risk management officer (Drew) claims she didn't know. She resigned and lost two years' salary, but no prison term will come for any of these crooks. Meanwhile, the Wall Street lobby is doing everything possible to prevent the Volcker Rule from Dodd-Frank from ever getting implemented. Until then, they will continue risking our money in their derivatives bets.
--David (OWS)
Diamon should be found guilty of poor management and all of the losses should have to be recovered before he gets a single dollar of bonus money. If he gets the big bonus bucks for good performance, he should be punished for poor.
ReplyDelete"JPMorgan capped its third-straight year of record profits with $21.3 billion in net income, even after suffering its biggest trading loss ever. The bank faces regulatory sanctions and investigations by U.S. and international authorities stemming from the loss over a wrong-way bet on credit derivatives. The mistake cost JPMorgan more than $6.2 billion in the first nine months of last year, and the board cut Dimon’s 2012 pay in half as a result."
ReplyDeletehttp://www.bloomberg.com/news/2013-01-16/jpmorgan-reports-53-earnings-increase-as-mortgage-fees-rise.html
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Won't work. Their net income for the year was more than 3 times what they lost. Monetary fines and penalties do not stop them. They just take the hit and keep going. This will not stop unless a Wall Street CEO goes to prison. As McCain told the JP Morgan executives who testified at the Senate hearing this week, the Wall Street banks think they are the only corporations that are not legally required to comply with regulations. When the derivatives mess was at its worst and the bank was lying to regulators and investors about the size of the losses, Dimon ordered his subordinates to stop sending the OCC the bank's profit-loss statements on these $157 billion in synthetic credit derivatives. That is not "poor management," it is illegal -- along with all the other deceptive practices they employed to try to minimize their losses. Dimon and three or four others should be going to prison, but, as Elizabeth Warren said last week,they don't go to prison. They don't even go to trial -- ever. Not Corzine. Not Dimon. Not Blankfein. Nobody.
--David (OWS)
So it looks like there is no help from the government, so what do we do now? Do we accept that the banks run government, if so, there is no hope. Right?
ReplyDeleteThe only hope is that the banks self-destruct on the weight of their own greed. It would have happened in 2008 if the government didn't have the money to bail them out. They are now even bigger than they were in 2008. Theoretically, they could become "too big to bail." That is already the case with the big Swiss banks. Collectively, they have more money than the Swiss government -- amazing, but true. In that case, they go bankrupt or get nationalized. Either of those are better than what we have now.
ReplyDeleteOf course, if you are an optimist, there is always hope that Occupy Wall Street will grow in size and effectiveness after the next big banking fiasco to force changes, but that's a long-shot.
--David