Max Keiser On Goldman Sachs And Bill Clinton's Hypocrisy; Peter Schiff Interview

Tyler Durden's picture

Max Keiser is in his prime discussing Goldman and Bill Clinton's hypocrisy in defending Goldman. Which is not all that surprising considering Clinton's son-in-law Marc Mezvinsky is a Goldman Investment banker. A brief bio on Marc:

As a biography, Marc Mezvinsky date of birth is unknown, but he has been reported to be 31 years of age. He is the son of the former Iowa congressman Ed Mezvinsky (who recently has been released from a halfway house after doing time for investment fraud) and Marjorie Margolies Mezvinsky, a former NBC reporter.

Marc and Chelsea originally met in 1996, when they were introduced by colleagues of their political parents. They even attended Stanford University together and studied finance. It has been reported that the two started dating in October of 2007.

Currently Marc Mezvinsky is an investment banker for Goldman Sachs and makes his home in Manhattan, New York, where he bought a $3.8 million condo last year.

Anyway, in addition to the usual scathing observations on the life, universe and everything, Max goes head to head with Senate hopeful Peter Schiff. Good clean fun ensues, with Alan Greenspan's invitation to the Keiser show pending.

 

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I need more asshats's picture

Anyway, Max is his usual and Schiff personally pockets half of his campaign "donations".

Dirtt's picture

Concur on both accounts.  I didn't get sucked in by the campaign solicitation because I smelled the rat.

tmosley's picture

Nice libel there.

Perhaps you should provide some evidence or take your liehole elsewhere.

YourAverageDebtSlave's picture

@tmosley, perhaps you should take Peter's peter out of your mouth.  What are you, his lawyer?

The guy is way too self-absorbed and concerned about being right to represent the American people.  I've been following him on Youtube since 2008, and have asked him the same question every time.  "What are your solutions?"  He's great at coming up with all the problems, but what are his solutions.  Yeah we know you wrote Crash Proof and were on CNBC predicting all this.  So how do we get out and what's that look like?  From listening to him talk, I would guess he would have us stop going into debt and bailing out the banks.  That's likely to lead to a depression.  How does he plan to prepare his constituents for that?

BTW, was I the only one that heard futures on box office openings?

docj's picture

The guy is way too self-absorbed and concerned about being right to represent the American people.

Congrats, you just described 100% of the US Senate, 99.7% of the US House and every Governor in the land.

Disclaimer: I don't have a dog in the Schiff for Senate fight as I live in the People's Republic of MA.

Mr Lennon Hendrix's picture

I like Merkley, but other than that I will agree with you.

docj's picture

I sort of like my new junior Senator (Brown, R-MA) - principally because I've known him since his first campaign for state senate.  It's going to break my heart if/when he turns into a self-absorbed asshole too.

jmc8888's picture

He's made some real nutcase statements in the past couple of months.  He's just as bad as the other republicans, perhaps -10 percent.

He gave me hope for a little while, that a real republican would take charge of the party opposing the one I subscribe to.  But nope, he's an idiot like the rest of them, with an occaisonal moment of clarity. 

But then again I want a democratic party that fights for it's legitimate ideals, and the same for republicans.  But neither party do.  Brown isn't the answer either.

That said, Clinton was the type of president who always agreed with the last idea some 'expert' told him.  He also put alot of goldmanites into office and kept greenspan.  He also obviously repealed Glass/steagall, even though it basically had already illegally been repealed starting in 1980.  By 1999, it was pretty much, we either need to make it legal, or arrest everybody.  We obviously know which way he decided.

Clinton is a conflicted person, he can make the right call, see Haiti...his admission of mistake of FREE TRADE i.e. in this case NAFTA. Also see his calls for MOVING the people to higher ground away from the earthquake and raining season sewer runoff zones, which even Obama is too stupid to do.  But he can also back goldman.  Very interesting dichotomy. 

Or it could be a father who knows his daughter is butt fugly and wants it to work.  Hard to say.  But it is interesting to see him back Goldman, but it surely shouldn't be unexpected.  Especially with what we all know about most politicians. 

I get to watch the McCain vs. Hayworth dipshit fight.  Old and out of touch versus crooked and stupid.  Neither is worthy of being on a PTA board let alone anything in gov't.  Pretty much makes any dem look like a savior.  But hey, if they support Neo-con Obama's agenda, it's going to be a pick between 2 bowls of crap.

A_MacLaren's picture

As an Oregon resident, and one who has communicated directly with Sen. Merkley, let me assure you, while he may be better than some/many in the Senate (personal assessments are personal), he has short-comings, and IMO, a core misunderstanding of the inherent and ultimately terminal problems of debt-based fiat money system.

Instead of supporting S.604:Federal Reserve Sunshine Act of 2009 (full audit version), Senator Merkley is sponsoring a competing, weaker audit bill, S. 1803:Federal Reserve Accountability Act of 2009.

Mr. Hendrix, I do not know your perspective on a full and complete audit of the Federal Reserve, I personally am strongly in favor of it, before Ending the Fed.  Senator Merkley supports the Federal Reserve System's continuity and is opposed to the full auditS.604 would shine upon their theiving, maggot infested, chronyistic, unregulating, and corrupt essence.

Mr Lennon Hendrix's picture

OK I am back to hating (almost) all politicians.  I still do not understand why DeFazio and Kucinich voted for health care.  Must I hate ALL politicians?!

A_MacLaren's picture

Except for maybe 1%, ummm, yeah.

Reality probably is, none of them are perfect, and we all have faults, we are human afterall.

So its back to selecting the lesser of faulted beings.

cossack55's picture

Politicians, YES.  Representatives, NO.  Statesmen, MAYBE.  To the best of my knowledge there are currently only 3 reps in the entire congress.  One each from Tx, UT, and Az.   

Mr Lennon Hendrix's picture

Concerning the Hollywood Futures Index.....

No.  It is the next party.  We are celebrating by buying mules wearing ass hats.  Just kidding.

Nihilarian's picture

From listening to him talk, I would guess he would have us stop going into debt and bailing out the banks.  That's likely to lead to a depression.

Your alias precisely explains why you don't understand economics.

Arm's picture

Why do you believe there has to be a solution?  When a plane's engines fail in the middle of the Atlantic there is precious little you can do.  The solution was doing the required mainteneance before leaving the airport.

 

Very similar situation.  You have a deflationary death spiral because of decades of bad policies.  There is no solution except hitting bottom. 

However, you do have a choice.  Do you want to hit the ground hard and rebuild quickly? or do you want to try to glide down and rebuild slowly over a decade?

jeff montanye's picture

good damn point.  too many think that every problem has a (fairly neat) solution.  some of that is good and helps the u.s. can-do spirit.  but some of it leads to an overly facile expectation of being fixed or cared for, no matter the gravity of mistakes made.  like the financial institutions after the real estate bubble blew (or the fossil fuel combusting rest of us when the bp well did the same).

cossack55's picture

Hit hard baby.  Rebuild what....the SYSTEM again. I think not.

mellmeister's picture

There is no 'solution', no 'getting out'. The constituents will have to live well below their means for a significant amount of time and flush the toxic shit out of the system, then the economy will naturally recover.

Problem Is's picture

"I need more asshats"

Classic.
You sound like a CNBC producer...

"How can I get even MORE ass hats onto one set for a faux finance show..."

RobotTrader's picture

Schiff has lost nearly all of his credibility regarding the U.S. Dollar and the strength of foreign markets vs. the U.S.

He's getting absolutely killed right now.

 

hack3434's picture

Not just yet so quit making shit up...

hack3434's picture

lol...nah...I just know one of his clients

jm's picture

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One shouldn't junk Robo.

A Nanny Moose's picture

Yeah, because following blindly is not what got us in this situation in the first place.

Question everything, even the guy with the cute little sarcastic editorials.

jm's picture

Kudos to you for actually saying something. 

jomama's picture

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seriously, though.  my only qualm with max is why he stops short of calling out the real players behind the curtain.  any ideas?  is he really getting paid to be an extremist shill?  wouldn't suprise me, as depressing as this modern world has become.

tmosley's picture

ITT we make (stupid) assumptions about other people's trading strategies.

He is NOT, I repeat NOT short the dollar. He is long gold, and long dividend yielding stocks abroad. The Yuan is doing just fine against the dollar. He is concerned with REAL production, not in seeking capital appreciation (though he often achieves both). Who cares if the stocks are down? They are still paying the same dividend, and they are in no danger of going bankrupt.

Perhaps it's too much to ask for a trader to understand what an investment is (hint: it's not a bet).

jeff montanye's picture

absolutely on point, see john hussman's comment this week.

Great Depression Trader's picture

Robo:

I heard Schiff the other day talking about Greece and the problems with the PIGS soveriegn debt crisis. He brushed it off by saying that the EU nations would figure out a solution, that there wont be a bailout, and that the EUR would bounce as it is a more reliable currency than the dollar.

Schiff is smart but he is arrogant and stubborn which is his downfall. Because he was so ultra bearish on the dollar in all his books, he wont change direction. He refuses to admit that he failed to consider political factors. The other day he said "markets are wrong" on the dollar and treasuries.  Markets can be irrational longer than you can stay solvent, I guess he hates Keynes so much that he fails to accept that his famous quote holds true. Longer term the dollar is doomed as are all fiat currencies but this can take years, perhaps even a decade.

Also, he keeps talking up the Aussie dollar even though AUS has a massive real estate bubble that is ready to burst.

theworldisnotenough's picture

Australia's housing bubble is a function of byzantine real estate rules, taxes and subsidies that constrict the supply of housing. The bubble could be alleviated by changing these things; it is not systemic to the economy in the way housing was in the US. Home loans are over 7% for goodness sake.

 

Great Depression Trader's picture

Dont know if your an Aussie, but if you are then we both know the same info.

My wife is from Perth, been there 4 times. Stayed for 6 weeks this year. People are going bananas over housing. Everyone has a "investment" property and is looking for "capital growth". When i hear laypeople using these terms thats when you RUN!!!

With regards to a "undersupply" of housing that is complete bullshit. Ive read many articles from great analysts ripping apart the realtor supply data. It all depends on how well you can manipulate the numbers. Dont forget that California also had a undersupply crisis of housing in 2006. Its the greatest sales trick ever, "get it while supplies still last". A growing population does not equate to rising home values. For example, many people live in India but property vales are cheap because of incomes. Aussie housing is running close to 8-9 times earnings. Its a complete joke that the median home price in Perth is +500k.

Moreover, ive seen the developers in action with my own eyes. Building continues to expand in the suburbs of many Aussie cities. Driving south of Perth i saw housing development after development. I saw some fucking retarded houses selling for $750k and more in some areas just because they were "closer to the CBD, or just a few blocks from the river".

Australia will suffer a housing collapse of epic proportions. I know that superannuation funds are heavily invested (by law) in Aussie MBS. This is how the big 4 (commenwealth, NAB, ANZ, et al) fund the housing machine. Most aussie MBS is held by Aussies. Thus, the gov had a huuuge incentive to bail out housing via the insane $16,500aud first home owners grant. So, the decline was reversed by virtue of the FHOG and the China stimulus commodity buying frenzy. Aussies think that their housing rampage is now unstoppable. Too bad it will take so many people down, unless they sell now, take that gain, rent and sit tight and enjoy the fireworks.

Kina's picture

Can tell you that Australia has a chronic under-supply of homes in every state except Tasmania and South Australia.

And it is only going to get worse with population increase estimates. We are continually behind the curve, mainly because of lack of planning attention by the states who got caught by surprise after the long plateu of the late 90s.

I know we are unable to turn-off enough serviced land fast enough to meet projected demand, pressures will increase and what constitutes a home re-thought. More high densisty and less of the 500-700m2 block of land.

 

Doesn't mean the bubble can't burst, it will, as soon as China hits a wall. But the same issues will remain and the a recovery would be stronger than you see in the US.

 

 

SteveNYC's picture

Your point on population growth is correct Kina but Great Depression is absolutely on the money here. Population growth will slow as soon as jobs dry up. This will happen when the mining sector takes a hit, which will happen when China reassesses its purchases of iron ore. Not too far off.

I sold two properties in Perth last year, and as you can tell by my name I don't live there. Hundreds of thousands of Aussies own MORE than one piece of real estate, negative gearing ensured that. The shortage is complete MYTH. I have extended family down there and guess what? They all have roofs over their head.

This will be exposed, as you said, when China hits a wall. It must happen, it is absolutely inevitable. Baked into the cake. A foregone conclusion.

The so-called "equity" that people have in their homes which is, true, greater than Americans had, will vaporize. Leverage will murder FHBuyers, they will be pissed.

The dominoes have started to fall, as actual sales "volume" and mortgage applications in the major cities are drying up. This is why it "looks" like prices are going up. Kind of like the US stock market rally, rising prices on declining volume = weak market. The gap is starting to appear between buyers and sellers. If/when we get deflation in the USA and China, say goodnight to Aussie home prices.

Troy Ounce's picture

A 40% tax on mining profits might also do the job.

A housing shortage is a myth: everybody wants
a bigger house with a sea view at a lower price,
so the shortage is eternal and used to sooth buyers

anotheranon's picture

Would you happen to have some sources regarding AUS property market? Because as far as I know there is no decline in Mortgage applications in NSW for atleast 2 of the big 4. (Close family/friends who work there)

I have heard that around 25% of all the housing in the capital cities is being left vacant as they are investment properties, and renting them out would allegedly drive down the value.

partimer1's picture

when things go up, it is always lack of supply. when things go down, it is always lack of demand.  people makes shit up to justify price move.  same is true for all the earnings from companies.  as long as the chinese buys ores left and right, aussies will be sexy.  if chinese hits the wall, the game is over.  all the games over.  I just heard a story about chinese housing.  a contract was signed to buy a condo with cash.  the buy felt that loan from bank will be a better deal, so he deposit 25% of cash and went to get a loan.  two weeks later he came back and he was told that condo was sold at higher price to someone else, and he cannot get his deposit back.  he went to court and it is still pending for that deposit. I told him it is so fucked up, and you better run, not even walk.  he didn't believe me.  go figure

Rainman's picture

Great insight. BTW, USA never paid attention to the Japan meltdown either.

Mr Lennon Hendrix's picture

USA paying attention?

Hey look, Nike ads!  The shoes light up, cool!

Buck Johnson's picture

Spot on, spot on.  I totally agree with you about Australias housing situation. 

theworldisnotenough's picture

No I'm not an Aussie. I have been researching a move. Thanks for the info.

Hearing that Aussie MBS is mostly held by Aussies makes me more confident that their central bank will continue to raise rates to cool off the housing sector and the economy in general. I just think the dynamic is different. The US housing crash had prolonged low interest rates, a credit driven service economy, liar loans, GSE fueling the bubble, and MBS were being strewn about the globe. Alot of the information I have been looking at is very critical of housing prices. Not so in the US. The MSM here lauded the housing boom as a never ending fountain of wealth. I do not see this in Australia. Imagine reading an article like this during the boom: http://www.theaustralian.com.au/business/opinion/no-time-to-pause-reserve-must-raise-rates-beyond-the-norm/story-e6frg9if-1225861769622.  The more I think about it the only thing the Australia bubble has in common with ours is high prices. Oh and the tax credit. I would be interested to know if Australians are living in their homes or using them as ATMs? If so that is a similarity.

A housing bubble more similar to ours is Canada's. An interest rate of .25% and exploding prices! http://www.crackshackormansion.com/ The prices are jaw dropping. Makes Australia seem downright cheap.

 

Great Depression Trader's picture

Longer term I believe that Southwestern Australia will be a great place to live, especially if things get rough. Plenty of farmland, adequate rainfall, seafood off the coast, amazing beaches (absent the occasional shark), commodities to power the economy and great people. Many of my wife's family are heavily invested in residential RE. They call me the doom and gloom yank as they dont listen to ANYTHING i tell or show them. Oh well.

Perhaps australias housing market will deflate on a slower scale somewhat like the upper middle income areas of the US. They had some stated income loans in AUS, many high DTI loans, 100% financing for some time, even 105% financing. Some recent article lamented how some homebuyers had to put 8% down and finance the 92%. Prices will deflate, but it is true that the madness that happened in socal/florida didnt happen in AUS as a whole. Bottom line: worst time to buy. Wait it out, and get some nice place in a few years.

SteveNYC's picture

Grew up there, an outstanding place to live indeed. They do need to get their heads out of the sand. They most certainly live in a "bubble" down there, in more ways than one!

Implicit simplicit's picture

I'd still rather him in there, than most that are there.

Mako's picture

He has no idea how the global credit financial system operates.   A rock on the side of the road has a better understanding. 

Mako's picture

Peter not only believed in decoupling, he was promoting the nonsense for years.  Now Europe is decoupling right into the Mediterranean.  He has no idea how the global credit financial system works. 

http://worlddarkestdays.blogspot.com/2010/04/decoupling-myth-was-true.html

"And the Europeans' monetary policy is not nearly as bad as ours, so more of that type money will be attracted to the Euro and will probably benefit other Euro-zone type currencies"

He's not the devil but he has clients heavy in Europe, and just wait till Asia starts collasping again.   You haven't seen anything yet. 

Sorry Peter but you don't understand Dick about anything.   China and the rest of Asia will be collasping as well.   Yeah, have the federal government let off the gas for even a moment Peter, instant collapse.   It's going to happen anyway... I love these clowns that think there is a way out.  There is NO out. 

It is clear that he hates America, because of hatred of the US for locking up his stupid dad he ignores the Truth, which is the system is unsustainable.   It's not a US thing Peter, it's a Math thing.