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Bill Fleckenstein versus Barton Biggs On QE2

Submitted by Tyler Durden on 11/05/2010 12:38 -0400

Today's must watch clip comes from Bloomberg TV, which interviews Bill Fleckenstein and Barton Biggs for their takes on the Fed's launch of the latest iteration of monetary insanity. Bill Fleckenstein, whose opinion on the Fed is no secret and has appeared on Zero Hedge many times previously, obviously sees the Fed's action for what it is: the last act of a desperate, secretive politburo in which a group of petrified economists, who have not been right once in the institution's recent history, pretend to set interest rates, when all they do is create bubbles. We are now seeing the last bubble: that, whose implosion will require extraterrestrial lifeforms to write a blank check to rescue a failed global Keynesian experiment. This is not lost on Fleckenstein. As for Biggs, there is no surprise where the 70+ year old stands on the issue of endless monetary stimulus by the Fed: sacrifice a calf while chanting Ben Shalom 100 times each night. That and taking one's geritol, which dosage after a statement like the following obviously was missed last night: "Bernanke has gotten the stock market up, which is what he wants to do, the stock market is an important symbol of confidence, and Mr. Market is a pretty good forecaster of the economy." Fleckenstein's response is, of course, spot on, and calls out the complete logic fail in the Traxis man's stream of consciousness: "When Mr. Market was reveling in the equity bubble and real estate bubble, it didn't see any of the problems coming. Easy money gets markets up, but doesn't solve any of the problems." Much more in this long overdue smack down of one of the most overrated asset managers in history.

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Sat, 11/06/2010 - 04:56 | 704868 ft65

People here are being too hard on Betty. She has to orchestrate a coherent debate while people scream in her ear. The speed she goes at is quite incredible.

Sure she's the devils spawn, we all know that. It is ironic that some massterbate at her looks, while others masturbate at hearing the obvious being stated while still more masturbate over the stupidity of a "sage".

It's one big all encompasing whack job... Just enjoy it for what it is. Get over it!

Sat, 11/06/2010 - 09:02 | 704947 bobboberson

I think the show host is better suited to a job in a massage parlor....

Sat, 11/06/2010 - 09:07 | 704952 bobboberson

And this old senial guy needs to be sent on down the road to the old folks home...

Sat, 11/06/2010 - 09:09 | 704953 bobboberson

LOL... Mr. Market is a good predictor.

"Graham’s parable goes something like this. Think of yourself as owning a share in a business in partners with others. One of your partners, say Mr Market, is somewhat of a neurotic who on any given day will offer to buy your share or sell you his at a specific price. His moods can fluctuate anywhere between incredible optimism and overwhelming depression. One day he will nominate a higher price to buy or sell, the next day he might increase it, lower it, or even appear uninterested in whether he buys or sells.

The point that Graham makes is that Mr Market’s judgment is formed more by mood swings that by rational thought and that this gives the wise investor buying and selling opportunities."

http://www.buffettsecrets.com/mr-market.htm

Sat, 11/06/2010 - 23:48 | 706027 No More Bubbles