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Michael Steinhardt Tells The Truth, The Whole Truth, And Especially The Truth About The Greatest "Con Job": Warren Buffett

Submitted by Tyler Durden on 04/05/2011 14:49 -0400

Just after dawn, hedge fund manager Michael Steinhardt appeared on CNBC as the token contrarian in the Titans of Groupthink series. After some pleasantries we hit the 6 minutes mark where the formerly trite narrative experienced a flash crash. In the most candid discussion of the truth in America, Steinhardt said that “we live in an inland sea of calm waters while surrounding us are turbulent, horrible places,” to which everyone nodded soberly in agreement, unaware of what was coming next. “America seems almost as insular as it has in times past,” He continued. “America is not the wonderful place it used to be... Look at the rest of the world compared to America, look what’s happening all over and then here the biggest thing we have to worry about is how long it will take Buffett to come down to earth…how long until people like you begin to realize his reality and get off some…cloud.”

Yet the smackdown of the Becky Quick/Joe Kernen Buffett-sycophant brigade was the prime attraction by far.

"Here in America's the biggest thing we have to worry about is how long it will take for Buffett to come down to earth where he should have been a long time ago, so people like you begin to realize his reality and get off some cloud."

"What is Buffett’s reality,”

“His reality is that he is the greatest PR person of recent times. And he has managed to achieve a snow job that has conned virtually everyone in the press to my knowledge…and is remarkable that he continues to do it.”

“Really,” Quintanila responded with a shake: “so outperforming the S&P, I don’t know how many hundred times, over the course of his portfolio…doesn’t matter?”

“Ooo, I’m not sure he’s done that. What he has done, and this is a great measure of the man’s wonder, is that he gave away two and a half cents for the first 70 years of his life- he gave away nothing- and then in one fell swoop gave almost all of his money thoughtlessly, to one guy. And from that moment on became the greatest advocate of philanthropy and pitched all the bumbling billionaires to do the same thing. That takes a special guy having given away nothing and then in one fell swoop ‘boom!’ he gives it all away and pitches the other yo-yos to give it away too. Now what does that say? I think that’s worth reflecting.”

And why a special place is reserved in the 9th circle of hell for the Chairsatan, right next to his true master: "He has just screwed all those nice old people who saved all their lives to retire and he is paying half of one percent so he could recapitalize the banks... The Journal does not talk about this because those people don't matter...If you listen to Bernanke inflation is low even though you can't help noticing what is really going on. Inflation is so skewed where inflation is commodities is flying and wages inflation is zero so for the average guy in America it is terrible. Not bad but terrible."

There are many CNBC producers packing their cubicles after this truthy disaster of unbelievable proportions.

Absolutely must watch (link)

h/t Paulo

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Tue, 04/05/2011 - 23:02 | 1139614 Vendetta

perhaps because the dollar won't be worth the paper its printed on, so Buffet got his personal stash of PMs set aside somewhere to tide him over to the grave

Wed, 04/06/2011 - 00:00 | 1139709 no2foreclosures

Foundations were created by CONgress when they enacted the income tax upon the American people.

Why?

Foundations allow the super-rich to avoid paying any taxes and to transfer their wealth from one generation to the next without paying any taxes.

You think Mr. Gates is a philanthropist? This guy is a head of the eugenics movement to vaccinate the world's population for one thing and one thing only: population culling. Even he has admitted himself, google youtube video, that this is the real purpose of his generosity.

So, for Mr. Buffet to "donate" his billions to the Gates (of Hell) Foundation, it was not philanthropy and generosity at work.

Tax avoidance and population control.

Wed, 04/06/2011 - 00:06 | 1139715 Yen Cross

It's just a double wrapped charitible trust, with a meat puppet appointee. They both have complete control over the trust as they appoint a board of directors. It's just a MAD theory. The interest on 100b is sizable. (buffett/gates) Just rounding it off. remember what I said earlier. What can't go up must go down. Microsoft is stuck in the wanabe cloud, and purchasing power of the usd, is a double edged sword!

Tue, 04/05/2011 - 22:53 | 1139516 ebworthen

Wages?

Average American?

The dream is dead?

Look at Detroit? Look at Cleveland?

This man (Michale Steinhardt) clearly has not had his three puffs from the Washington/Wall Street/MSM hookah and his SOMA tablet direct from the FED!

Tue, 04/05/2011 - 22:42 | 1139565 Muir

Tue, 04/05/2011 - 22:49 | 1139574 samsara

Everybody makes comments like "When will the people wake up?" Well, it may be getting close.

Take a look at this video Someone sent me.

Watch the whole thing, He may suprise you as to who he is defending and talking about. This crosses all sectors.

Basketball Goal Taken by FORCE of LAW! http://www.youtube.com/watch?v=V88lgXfemCA&feature=feedf

It's ironic what it takes to finally snap joe suburb, but we are nearly there.

(oh, some background music for this one )

http://www.youtube.com/watch?v=t0cdCUtbDFQ&feature=related (btw, the Country was Tunisia where it started with setting himself on fire not Egypt)

Tue, 04/05/2011 - 23:04 | 1139621 ebworthen

Unbeleviable!!!

We are such fucking sheep.

We have no guts whatsoever.

My city recently went on a "green" campaign doing similar things; tearing up parking space and basketball hoops and spending taxpayer money on "common space" to make it "green".

Rot in HELL you bleating robots who don't know what liberty means; I have NO MORE allegiance to this sad corpse of a nation called "U.S.A."

Tue, 04/05/2011 - 22:49 | 1139579 linrom

OMG. A hedgefund guy said a few things, and everyone is all beyond themselves.

Tue, 04/05/2011 - 23:12 | 1139639 chump666

because you are an ant.

good to see a legend of the market have a go at the conman of the market who sells books to ants.

Tue, 04/05/2011 - 23:55 | 1139681 linrom

I don't care about Warren Buffet and I care even less what a hedgehog like Michael Steinhardt says, now give me an interview with Michael Hudson, Bill Black or Steve Keen!

He talks about Detroit, Cleveland? How about Overtown or Liberty City in Miami or East St Louis: nothing has changed since 1970s. How about somewhere close to where Steinhardt lives: like Newark? What the *uck has changed. There is nothing different! Where has this fat collosus been for the past 40-years?

Wed, 04/06/2011 - 00:28 | 1139767 chump666

ah f*** it. Look, what YOU want to see, if you follow the market is the 'other' makert players, as opposed to the unber braindead bulls like Buffet - that Obama underwrote and the FED feeds capital too.

What we ALL need is a good dose of shortselling...it will happen, probably be brutal. I respect Steinhardt and others that play the market how it should be played. Not a front running illusion set by the most insane central banker (B.B) this side of the Bank of Japan.

All markets are now extremely mispriced on the upside, Buffet is a long term value player..he hates hedge funds but loves Wall Streets investment banks that are the worst investors on the planet, but are backstopped by the FED (NY).

I suspect the hedge funds are now frustrated that they can't hedge the weakness in the market, as they are forced long via the FED.

...it's going be the biggest market reset in the history of capitalism when?...I dunno maybe when China implodes.

Tue, 04/05/2011 - 22:50 | 1139584 americanspirit

It's really kind of amusing to see all you whipper-snappers ( look up the derivation) criticizing Steinhardt for how "slow" he is in responding. Have none of you heard of the phrase "think before you speak"? I know that the younger generations place a lot of value on the fast retort, the quick quip, and when I was young I used to think that brilliance equated with verbal speed. But I can assure you that if any of you "old codger" accusers would find yourself in an actual gun duel with this man your last thought would be WTF? Us old guys have learned that brains are a dime a dozen - it is the ability to reflect before speaking that separates the merely brilliant from the actually effective. But then, none of you have lived long enough to appreciate this. Ever wondered why older guys seem to listen quietly while you display your brilliance? Do you actually think that its because they are dazzled? Young fools. The classical Tarot sign of the fool is a young man smiling up at the moon as he steps off a cliff. Good luck with all that arrogance.

Tue, 04/05/2011 - 23:08 | 1139632 ebworthen

LOL

+Geritol and reflection

Wed, 04/06/2011 - 00:33 | 1139780 Yen Cross

+ CYN I'm faster than I have ever been! You are as well. You process before you speak. I like that. Silence is golden!

Wed, 04/06/2011 - 00:39 | 1139790 Broker NotBroke

*shakes fist*

and get off my lawn!

damn' kids with their music too high and their pants too low.

Tue, 04/05/2011 - 23:10 | 1139637 steve from virginia

Best clip on ZH in a long time.

Tue, 04/05/2011 - 23:13 | 1139640 dick cheneys ghost

Wachovia nailed for selling securities 70% higher than they were Marked....Im sure every firm on wall street did the same...

http://nakedempire2.blogspot.com/

Tue, 04/05/2011 - 23:19 | 1139650 Political Athiest

Wow. First former CIA officer unloads a big can of truthiness whup ass on CNN about this lie that is Libya's humanitarian misson:

http://www.prisonplanet.com/this-is-what-happens-when-establishment-cont...

And now this. Wouldn't it be something if everyone who really knows what's going on starts culture jamming the lamestream media. Sure, they'll never get asked back again, but it'll live on forever on the 'net (with a whole lot more viewers!)

Tue, 04/05/2011 - 23:34 | 1139674 Ben Fleeced

What are the De Beers doing gold/silver bugs? Heed the call.

Descendant of Hapsburg.

James on Pennsylvania.

Yes, just a troll voice in the junkit shit storm.

Tue, 04/05/2011 - 23:47 | 1139696 Lazane

Buffett invented the giant sucking sound you hear pumping at the trough of government handouts, total weasel.

Wed, 04/06/2011 - 02:04 | 1139893 Yen Cross

Buffett bequeathed his own children.

Wed, 04/06/2011 - 00:52 | 1139806 Stuck on Zero

We need more Wall Street people ratting on each other. The dark ugly underbelly of this bunch of banksters needs to be exposed.

Wed, 04/06/2011 - 00:53 | 1139808 Let em push you...

Look at the thumbnail picture of this guy on the main page.

Diabetes, bitchez!

If you don't know what I mean, why don't you youtube "diabeetis remix"

Wed, 04/06/2011 - 01:32 | 1139863 Yen Cross

I got it you diametric pain in the butt!

Wed, 04/06/2011 - 01:14 | 1139838 Milton Waddams

joke;human cost is quantifiable secret code: ;human cost is quantifiable

Wed, 04/06/2011 - 01:34 | 1139865 Yen Cross

The building blocks For the SyFy channel.

Wed, 04/06/2011 - 01:17 | 1139844 grl

Was this guy the model for the Monopoly Box?

Wed, 04/06/2011 - 01:36 | 1139868 Yen Cross

I have a break. Pee Wee Herman, or Leprechaun?

Wed, 04/06/2011 - 01:54 | 1139881 ATG

Speaking of snow jobs

In 28 years MS returned 461 dollars for every dollar, a 23.5% CAGR

WEB returned 4904 in 46 years, a 20.1% CAGR

So MS quit while he was ahead

Would we rather have the time or the money?

Let's hope MS does not end up like another MS, Matt Simmons

Wed, 04/06/2011 - 02:48 | 1139933 Yen Cross

I'm tired we need to see Koala Lumpur.

Wed, 04/06/2011 - 03:18 | 1139959 Yen Cross

Jealeous? MiFi is going dead. Then we crack out the Sat link. Don't play the junk game with me. I'm telling the truth.

Wed, 04/06/2011 - 03:28 | 1139963 Devore

How long until CNBS stops having any guests at all?

Wed, 04/06/2011 - 03:58 | 1139976 Hillbillyfreak

Thought I would post something witty and insightful regarding the interview. But I find myself in deep reflection. Not to mention inner soul searching. Maybe will post something later.

Here's my captcha: ? times (minus four) equals 152. Little help please. Reflection won't do here. I need an answer.

Wed, 04/06/2011 - 04:40 | 1139991 Shylockracy

Ecce Homo:

"In 2001, Steinhardt published an autobiography: "No Bull: My Life in and out of Markets". In this book, he addressed for the first time the question of his father, Sol Frank Steinhardt, who also went by the moniker "Red McGee." "Red" Steinhardt was convicted in 1958 on two counts of buying and selling stolen jewelry, and was sentenced to serve two 5-to-10 year terms, to run consecutively, in the New York State prison system. (He did most of his time at Dannemora, a prison in upstate NY near the Canadian border, but had his sentence reduced to time served after two years due to allegations of prosecutorial misconduct.) Regarded by D.A. Frank Hogan as the number one jewelry fence in New York, "Red," according to No Bull, was an associate of noted underworld figures such as Meyer Lansky, Vincent "Jimmy Blue Eyes" Alo (incorrectly named "Aiello" in No Bull), and Albert Anastasia (No Bull wrongly refers to him as "Joey".) In No Bull, Steinhardt describes how his father bankrolled his early forays into the stock market by giving him envelopes stuffed with $10,000 in cash and sometimes much more than that. The book also suggests that Steinhardt's education at the Wharton School may have been paid for with illicit funds.^[8]"

http://en.wikipedia.org/wiki/Michael_Steinhardt

Wed, 04/06/2011 - 05:32 | 1140014 reinhardt

so many questions

answered by three simple words

1. cost

2. of

3. labor

Wed, 04/06/2011 - 07:20 | 1140065 TexDenim

Michael Steinhardt is a blowhard. I can't stand listening to him.

Wed, 04/06/2011 - 10:08 | 1140512 hugomarch

WEB (Buffett) is for population control. Apparently, he has run the numbers and doesn't want an overpopulated planet to take away any of his tickets (as he calls it).

Wed, 04/06/2011 - 10:10 | 1140528 hugomarch

How magnanimous Steinhardt sounds after all those years of insider trading. Maybe one of his kangaroos will get him.

Thu, 04/07/2011 - 14:04 | 1146053 Fiat Money

exactly. while it is fun to watch the wall street, bankster, hedge-fund sharks devour each other in their feeding frenzy, that don't make saints of the survivors.

Sat, 04/09/2011 - 21:06 | 1154151 thames222