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Watch As David Einhorn Makes A Mockery Of One-Man Fed "Expert Network" Larry Meyer
One of the Fed's more arrogant former apparatchiks (of the "100% confidence" interval) Larry Meyer, currently at expert network Macroeconomic Advisors which is used by the likes of Pimco to get inside information on what the Fed will do at its upcoming meetings, appeared on CNBC earlier and attempted to school David Einhorn on "Economics 101." What ensued was yet another confirmation that these Ph.D's (a term we always use in the most pejorative, NC-17 context possible) who destroyed the world, have absolutely no idea what the hell they talk about, and make up bullshit scenarios on the fly. Luckily, it has gotten to a point where every incremental statement catches them in one lie or another. It has become grotesquely comic to watch their faces (as in Bernanke of 60 Minutes infamy) squirm as they realize that the end of the system they created and subsequently destroyed, is near.
A selection of Einhorn's questions:
- "Part of the issue with the deflation is companies improve the quality of their products, so last month the PPI went down because we had a new car year, and they sold you a better car for the same price. Now why is it the Federal feel like you need to have a policy response to auto companies making better cars and selling them to you at the same price? Why do we need to drive up the cost of energy, and food, and cotton, to offset that?"
- "I think if you drive up food and energy prices, which you don't count in the core PPI or CPI, I think if you don't count those things in the inflation, you may miss the inflation, and if people have to spend more money on food and energy, they have less money to buy other things, and that could prove to be a net reduction in economic activity..."
And while he is unable to respond to any of these (or other) all Meyer can do is assume the claim that easy monetary policy stimulates aggregate demand as factual, where Einhorn put the smackdown: "I think you can argue that, because we have gotten to the point where the transmission method [sic] is broken. You are trying to create a wealth effect which is another asset-based economy thing, it's very questionable whether higher stock prices cause lots of incremental demand, and you have the cost of food and energy which are real things that people have to pay for. And if you have to pay $3, $4 or $5 for gas, you have less money to go out to eat." Meyer's response once again: is nothing less than derisive laughter with no facts to support his claims whatsoever... except for falling back to Econ 101... which of course is not a science.
Lastly, Einhorn says: "I am worried about a bubble in corn and oil." The response - blame it all on China. "Commodity prices will go up but it's driven because Asia and China have adopted US monetary policy which is crazy for them. Absolutely crazy. And we can't do anything about that." And confirming our long-established theory that the Fed is doing nothing less than punishing the American people in order to get China to blink we hear the following from the entrenched demagogue: "That's no reason why we should keep interest rates higher, to benefit China and Asia, and prevent bubbles there, they have to do it themselves. Look in the mirror if you want to know whose problem this is."
So true: so let's create hyperinflation in the US, in the hope that Beijing will finally unpeg. It's official: the Fed is willing to sacrifice its people in order to win an intercontinental pissing match of a flawed and dying economic theory.
As for Larry, we are confident he will survive long after his entire life is proven to have been a hollow defense of a failed ideology: after all he is one of those "fly on the wall" Fed consultants who gets paid by the PIMCOs of the world to leak inside monetary information to the highest bidder. We would love to know: now that the Gerson Lehrman model is over, when will the true leak of critical inside information: companies such as Macroeconomic Advisors finally see either a subpoena by the AG or an FBI raid... After all what they do is identical to what all those other expert networks do day in and out. Only this time the stakes are that much higher (and the pool of beneficiaries that much, ahem Bill Gross, smaller).
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Einhorn Likey Metals...Me too
Let's hope he can do to Dimon's career what he did to Erin Callahan.
I bet Meyer thinks the Emperor looks truly resplendent in his FRN robes...
This guy is a member of the modern Priest class. They speak their own language, we have to go to them for the answer, if we don't understand or agree with their answer its because of shortcomings in our own understanding!
Just like the Priests of the Middle Ages!
http://psychonews.site90.net
PsychoNews: Exposing the Oligarchy, one Psycho at a time.
burn these demagogues at the stake, or better yet, ship them to Cuba!
its time to let some real animal spirits loose on thes high priests of the beast-squid entities
Likes Sprint too.
The open spectrum favors them heavily versus the MEGA MEGA DEBT Verizon & AT&Ts..
Notice Meyer shitting in his pants once Einhorn asked legitimate questions about inflation.
Yup! Kinda hard to bullsh!t someone like Einhorn that has to ACTUALLY make money in this messed-up market(s) created by misguided Fed policies.
If you want proof that hyperinflation is already here look at www.dailyjobcuts.com
== For every dying business, a surviving business takes up the slack and increases its selling power. The fewer that survive the higher their selling power and I see that happening on a daily basis.
Einhorn is superb. Meyer was ridiculous.
einhorn got that smug lying POS shill a tad rattled...
disagree....
that queeb Meyer was balls deep in "I'm alright Jack"
Off topic but Drudge is flashing headlines that Obama is proposing a 2% one year cut in SS payroll taxes. 6.2% to 4.2%.
Meaningless noise until he truly does something revolutionary - cutting spending. I mean like entitlement spending taking a 40% hit.
So......instead of cutting income tax rates they cut SS payroll taxes. This tells you exactly where/who they intend to f#ck-over. They have gutted the SS fund now they are cutting the amount that is being payed into it. They get to keep $ coming into the general fund while underfunding SS. They haven't addressed a cut to spending just more deficit spending....we are all in a world of hurt!
I'm opening a small business selling "maps to the financial stars' homes".....
Let me know when you start selling your product. I'd like to buy one.
Yes, I too would like to buy one.
you know, its going to be interesting to see how these fools deal with the countless "old people eating cat food and freezing to death" stories that are -- without a doubt -- headed our way.
but there is no real inflation.
First off, the media won't report it. Reality is not news anymore.
Secondly, those old people were fools to believe in social security and they lived outside their means.
Third, they are old, they really can't protest. They had a better life than their children will.
Wrong on all 3.
1) Someone in the media (fox, an independant, etc) will report it.
2) You should realize that few live entirely off Social Security. Not enough money. My Dad got 850 a month and couldn't even rent decent housing on that. People live off savings and relatives.
3) They are old and others will protect them. Whose to say which life is or will be better?
Thank you. It needs to be said that a lot of petulant children will applaud the coming carnage to their grandparents. Drudge reports today about the number of seniors riding buses around in England all day to stay warm/alive.
IF that is true then that society is finished.
beyond shame if that's true.
Excuse me? You mean to tell me that you are going to try and justify the fact that old people want to essentially continue the ponzi because they need to get theirs and fuck everyone else in the ass while doing it. FUCK YOU! My generation is FUCKED because of my parents and grandparents generation. I don't blame them for my financial situation, I blame them for trying to continue this sad affair because they feel they have too much vested into this ponzi and they want that free ride they were promised so they want to pass the bill onto the next generation in perpetuity.
This shit needs to fucking end.
This attitude is just what the elite rulers want, the people blaming the people, the young like you blaming the old, the employed blaming the unemployed. It's a fucking war of the few rich against the rest of us and they control the education system, the media. You are right to be angry but your anger is misdirected just as they want.
Quite so.
Unless we do something now, in 20 years time there'll be just as many parasites in Burnbright's generation leeching off everyone else.
How many in your generation, Burnbright, know about fiat currency and FRB? Or care?
The problem isn't generational.
It is not misdirected. I don't hate old people, nor do I really blame them more than myself. I just don't think the elderly should be complaining about their situation, they made their bed, now they got to lie in it.
Soylent Green
I'm with you, Burnbright.
"Crime of the Century": go fuck yourself.
Our parents and grandparents were puppets. I don't care about fixing their mess. They had the good life, we're generation x,y are the ones getting fucked in the ass. We never got the chance to have the good life. All the old fucks used and abused us before we were even born. So, NO - wrong on all 3.
We younger people need to focus on ourselves not our oldfarts.
Alan Greenspan was at Pimco this morning. If anyone cares. He was not at their xmas party Sat night tho...
We need the Einhorns of the United States to reclaim America.
Einhorn was great
He made the point that deflation is happening --- "a car that lasts longer for the same cost"
Why can't we live with deflation?
That is the question Tyler needs to focus on.
A solution. Buying gold is not a solution
All of you gold bugs are getting excited because of inflation --- the real trick is how to live with deflation
If the gov stops printing money --- which it may ---- what would you do then gold buggies
You are hoping whether you admit it or not that they keep printing so you can profit from the rise in gold.
You are doing no good you are not building better cars for less. You are as bad a hedge fund buying insurance on a mortgage and then betting against the insurance.
So keep on hoping Larry & Ben keep printing because that is how you will prosper
Why can't we live with deflation?
Because our service based economy will collapse like a house of cards.
Actually, the correct answer is a fiat based economy will collapse like a house of cards. Not all gold holders root for the price rise, knowing what it really means. Either way, calling them names and cursing the tide instead of protecting yourself is the height of impotent folly.
Actually, the correct answer is that the banking system would collapse. Banks survive by charging interest on loans -- but if money is worth more tomorrow than it is today, as in a deflationary environment, then interest rates would have to be negative. Since profits are measured by increases in nominal dollars instead of purchasing power, the banking system couldn't survive in such an environment.
Also, don't forget that the Fed's main role is to protect the large banks; everything else it does is secondary.
@Ace
Excellent finish to a brilliant conversation. This is what makes ZH a great read.
You are wrong Ace, Banks make money on any principle and interested returned on the loan, that is to say that the Banks do not have a liability when they loan money. The deposits of a bank do not change when they make a loan.
Read modern money mechanics.
What? Unless the proceeds of a loan are disbursed in cash, a deposit is created to receive the proceeds of the loan. While it's possible the deposit base of lending bank may not increase, the deposit base of the system as whole does (b/c some bank in the system receives the principal of loan the lending bank just granted). So bank liabilities grow apace with loans.
Not sure what "modern money mechanics" is all about, but what I just described is the standard money (or deposit, or credit) multiplier mechanics...a mechanism which is currently not working...much to the chagrin of the Ben Bernank
" Not all gold holders root for the price rise, knowing what it really means."
yup. Owning gold is like being a time traveler standing on the docks at Southampton on 10 April 1912, watching the Boat take off...
WRONG!! Deflation will destroy inefficient businesses cleaning the system much quicker.
Jobs will have to come back here as real wages versus real costs will rise dramatically but real demand will be as dead as can be.
His comment wasnt saying that deflation was happening, it was pointing out the flaw in the CPI calculations which are so skewed towards providing the illusion of low inflation that in times of actual low inflation the hedonics adjustment push the measure negatvie, creating the illusion of deflation. He was saying that there isnt any deflation but thats its a flaw in the CPI PPI modeling which is providing the illusion of deflation.
You are right. Buying gold is not the solution except for those that are lucky enough to have some. Those folks have done their homework. The folly of those that govern and the governed is they are concentrating on the minutia and can't see the big picture. A little bit of adjustment here and a little there wont change the direction of the avalanche. The solution is the reverse of cutting taxes and not cutting government. I don't know where someone got the idea that in the US we pay about the lowest amount of taxes. Add it all up and I pay about 40% for Fed., State, Real Estate, Sales, Excise plus the damned accountant and all the time I spend collecting information just to pay the taxes. If we are gonna get robbed why don't we pay ONLY a value added tax. Then we could get rid of the accountants, tax forms and the IRS.
I for one am not going to go down with the ship. I'm going to own gold and silver for as long as I think it will protect me from the sick myopic jerks that think they can fix things by tinkering with a bloated muscle bound steroidal psychopathic degenerate system while flooding the world with dollars. No Ponzi scheme can last forever.
"Why can't we live with deflation?"
Properly speaking, deflation is a contraction of the money supply that results in falling prices but is not the same things falling prices in a sound-money economy. To understand the difference, see ZH's recent post by Free Radical here:
http://www.zerohedge.com/article/guest-post-rip-homo-economicus-end-ubiq...
As we saw in winter 2008, gold thrives in deflation -relative to other assets-as well as in inflation.
Gold is an investment in the enduring capacity of Economics PHDs from prestigeous schools to @#$% things up.
Gold is an investment in the capability of the person who earned the money, to spend it in the way they see fit, not in the way corrupt, banal government sees fit
The day i see someone honestly trying to fix and reform the system, I will sell every last piece of gold. Only fools refuse to watch out for themselves, their family and loved ones.
You sir, are an idiot.
Fed governors, so fucking out of touch with reality. send em all to work camps.
Sadly it don't work like that. You & I get the work camp fellow prole...
How does the tech industry survive with constant deflation?
They operate with little to no debt and the government has stayed out of their business (relatively speaking).
+1
What a novel approach to doing business.
And they are constantly innovating to increase productivity, reducing costs, and creating newer (hopefully better) products.
"he government has stayed out of their business"
ha? taxpayer has been funding R&D of the tech industry for a long while...
Exactley
I vote for deflation
But all the goldbuggies here would go broke
I agree that the hubris is unseemly.
However, the "goldbuggies" would not go broke...at least the un-leveraged ones with physical. They would get on with their productive lives and prosper in a world where the faith in fiat currencies was restored by the responsible actions of governments.
In their defense, many have been derided for their foresight so there is an element of satisfaction at apparently having been proved correct. And this is billed as a fight-club.
How do you figure that one, Cramer's goofy mating call?
As long as there is unrest both in nations and economies, gold will hold its own.
It's not all about in/de flations.
1 billion
Chinese working for a pittance
And loving it
Making quality products like this cell phone I am using
To communicate from my flat tube room as the pats get me into fantasy playoffs
That is deflation the good kind
And to paraphrase Einhorn
Why is that bad
Why can't Tyler or the fed figure out how we can live
Happily in that state
If you're in a dormitory and sustaining yourself on rice, tripe, and soybeans, you're right.
As a species, we can all live very happily on very little. Many of us just don't realize it yet.
Give the rest of 'em a decade or two. They'll come to understand. That cellphone's only for special occasions, though, and the fantasy football thing is over.
"Why can't Tyler or the fed figure out how we can live Happily in that (deflation) state"?
for the same reason it's hard to fully enjoy the only working oxygen mask on a doomed jetliner...
"Why can't Tyler or the fed figure out how we can live Happily in that state"
I don't know. Why can't Tyler or the fed figure out how we can live happily in that state?
Why can't Tyler figure out how we can make chocolate from used auto parts? Or industrial tools from orange peelings?
C'mon Tyler! What are you DOING all day?
Fully diversified investments include some precious metal, as an inflation hedge to protect purchasing power in a fiat money economy. Personally, I'd rather we had a "real economy" one without fractional reserve banking with real saving and capital formation growing apace and accordingly. However, we have what we have, hence gold seems the traditional hedge for fiat currency economy.
If we had a classic, Austrian-type school economy I'd expect more long-term economic stability and less urgency for a gold hedge but that's is not our reality. I would love stocks going up for the "right" reasons not the ones that the Fed is presently providing, in this case I prefer gold.
'how does the tech industry survice with constant deflation'
-Great question
The Fed and its various mouthpieces are clearly acting out of an increasingly obvious position of desperation. There is a real possibility that things "behind the curtain" are a lot worse than most of us realize. And the collapse that signals "the end" of the global-fiat-Ponzi-experiment could begin at any moment.
I had on CNBC and saw Cramer with graphics saying Bernanke has things under control and that gold is up due to "supply and demand". I usually don't watch CNBC for long because of shit like this.
Meyer's rhetorical style reminds me of Barney Frank's.
Einhorn is my hero!
Check out his other vid from today:
http://www.planbeconomics.com/2010/12/06/david-einhorn-on-the-dangers-of-zirp/
I agree.
but how about cnbc ?
i dont understand why the fu** im starting to like them too..
kernan has improved his smart-assism, and santelli is there daily. those two at least make it bearable in the morning. well, until bob pissonme shows up.
Kernan strikes me as a common-sense kinda guy that's beginning to suspect that lots of people are blowing smoke up his @ss, while Santelli KNOWS it!
Thanks markmotive.
Thank you for that link.
Another Fed expert:
http://www.youtube.com/watch?v=9QpD64GUoXw
Wow, awesome interview.
I reckon a big issue with the FED and garchy economists in general is that they expect the finance industry to lead a recovery, without recognising that the finance industry, while nominally a large part of the financial economy, does not actually figure at all in the physical economy.
Also they have forgotten that all the wealth in the world is created by the masses, and that you cant eat paper. The general population is the major economic force in the world, but they dont recognize that, even though they will happily state that 70% of GDP is consumer spending. Thats why they think that 'aggregate demand' destruction from higher comodities will be less than deman creation from financial players in a world of loose monetary policy.
The United States of America, The World's Bankers.
Yep. I like Einhorn's ability to cut to the bone without all the economic jargon:
"I'm concerned about a bubble in corn and oil."
Cut to the bone indeed. I was laughing my ass off they way loud mouth larry would spout his fast talking garbage and Einhorn would come back with his timid comments that must have felt like a kick to the balls.
"You can print money, but you can't print wheat."
- Rick Santelli
Einhorn showed a great deal of patience talking to that fool.
http://www.youtube.com/watch?v=EPvd-L7GYks
'twas too easy
uh...uh...uh...
Moron alert.
This guy Meyer is out of his depth vs Einhorn, but what worries me is does the Fed not see these flaws in CPI? I'd almost prefer that they know it's a bullshit measure and are using it as a smokescreen to create serious inflation to try and quickly devalue the Dollar and screw China, than the idea that core CPI is "a more accurate predictor of future inflation"
Then you'll be happy to know that is the case. Of course they know these things to be true - their job is to convince you that the fingers around your throat are there inadvertantly.
Meyer is depending on "Economics 101" to save his ass. We are, unfortunately, far past that. Some real common sense, let's say obvious, solutions are needed. Hiding behind the Economics For Dummies text is no longer working.
So Dave has gone long widows & orphans today... Is that it? What a nice guy to look out for his fellow man.
/sarcasm
You can bet your ass he'll short those sorry fuckers till their eyes bleed tomorrow... if it happens to serve his purpose... Nice performance regardless.
Yup. I noted this appearance at 10am in the Barclays thread from this morning. Before applauding Einhorn's performance, I acknowledged the haters in the house. Smart money is ruthless for sure, but I'll take honesty over dangerous dissembling any day. And yes, I am familiar with Deep Capture...
I concur: Honesty > whatever the hell it is the Fed is doing. That said, I still wouldn't trust that Einhorn sociopath to babysit for me. :)
Thanks for not arguing against the existence of abusive naked short selling... Props to Deep Capture for finally ending that discussion.
Where's the love, brah? We all do what we can.
There are guys whose talent is spotting suckers. They go into sales, they're the big bulls, etc etc.
There are other guys whose talent is spotting crooks and con-men. They're the perma-bears and the shorters, etc etc.
Plenty of folks have no talent.
We saw one of the second group matched against one of the third group. There was no competition there.
Don't be a hatah.
What's your gift?
so what wrong with that ?
Einhorn's a smart guy and his points re crude corn and commodities is a fair one, though i believe Meyer wasn't wrong when he retorted about China and India being the ones responsible for the drive up in prices. Not as speculation, but actual demand for those items. As well, having them use the same fiscal and monetary polices as the States is indeed ludicrous.
Of course Meyer will talk straight out of the textbook when it comes to dealing with inflation, hence his 'econ 101' remarks, but in essence keeping rates down should (<key word) stir up investment and growth in the medium term. Long term, yes 0% rates are the path to a next bubble, but luckily besides commodities and the ridiculous ramp in equities, prices in consumer staples aren't yet out of whack. What i don't believe is Bernank has the ability to "100%" control inflation as he claims, and that is very unfortunate.
Next few years will be very interesting indeed.
A simple chart should be able to show if this is actually the case, but I'm with Einhorn on this one if you look at the amount of the increase from last year.
Different point, if they raise interest rates, the banks go bust, it's as simple as that. This is why interest rates are low.
Yes, agreed on the increase in the commodities mentioned (not all mind you), but that rise can be attributed to China/India.
As for rates - wouldn't you agree the whole economy comes to a standstill? You can't simply raise rates in this fragile environment. People aren't going out and 'enjoying money' at these low rates, there is not much more (perhaps nothing?) that can be done to stir up investment and get the consumer to spending. It's all about the flow: Consumers->Business and Business->Consumers. Businesses have done quite well cutting down and increasing G.Ms, but unfortunately the average consumer is so scared to spend they must actually be hiding their $ under a mattress. Can't say i blame them, but alas this brings an unnecessary dragging out to this recession.
The ECON 101 comment was really telling, clearly what Meyer cant get his head around is that ECON 101 is a normative theory, not a positive one, and as such doesnt accurately describe the economy. Econ 101 is bunk and so is everything which builds up that flawed foundation.
The Bernank is gonna find to his chagrin that inflation is more than a single platoon -- it's a whole fsckin' Army! Bypass and envelope will hand the Fed their @ss.
larry meyer is an arrogant c...... Of course you dont care what the price of food is when youhave a nice big, indexed govt pension waiting for you. These people are dangerous.
I liked how Einhorn said "the inflation" and "the deflation" just like one of those xtranormal cartoons.
Hated the shit-eating grin of the Fed stooge at the very, very end. Millions of people will starve, and he just cares about being able to get his two-year lease on the new Lexus he's been eyein'. Sociopath or idiot, you pick.
Lexus??? No. Perhaps Maybach... But whatever.
So you think Einhorn is NOT a sociopath? I would agree he's a more palatable sociopath than old banker, but he's just another of their ilk. Choosing between these two ivy league insiders is like arguing Democrat vs Republican. They both deserve a visit from the Marines-Fallujah style. Let God sort em out.
I don't know anything about Einhorn, and therefore was not - by design - including or not including him in that comment.
I don't think all hedge fund managers would by definition be sociopaths. Arrogant, sure. Aiding and abetting the Ponzi - yes. But I could argue at least a little bit that a good short seller can provide some usefulness in the marketplace - even it might be self-interested. But, again, to me a sociopath in this circumstance is one that allows others to be harmed simply for their own gain. I don't know anything about Einhorn, therefore don't know if he fits in with that. That Paulson guy telling people to buy lots of houses - to simply save his MBS longs, now that's a sociopath.
he's an interesting guy einhorn is. was some sort of poker player in his youth and he did make some good calls in the past. youth on his side also. more importantly though, grandpa had that talk with him..you know the one joe..gold... its money!!
Short sellers, like vultures, serve a useful ecological purpose.
After taking Macro and Micro these past two terms, I can say without a doubt, that economists have absolutely no clue about what they say, do, or suggest. It's all BS theory and when it doesn't work like they planned, they just have to government step in and mandate something to push it their way to make it seem like they know. There are so many contradictions in the textbooks its embarrassing that we use such a system. They even support oligopoly and monopolistic competition in the textbooks. Our whole country is one monopolistic competition under a group of cartel operations. Plain and Simple. No wonder as the years pass things get worse and worse. It's a death spiral, that will end soon, and end badly.
Just like most of our textbooks its propaganda, and if you don't question it or know any better you accept it and your thinking process is permanently tainted.
The academic roots of institutionalize FEDisms are in place for one goal, FED plausibility of purpose. A slight of hand, obvious misdirection. The FED is the mechanism of wealth transfer to the priviledged (entrenched) class.
Mark Beck
It was like watching a debate between John Galt and Orren Boyle.
Man, the fat guy was creepy as f---. You could imagine him stabbing you in the back as he hugged you with that creppy Cheshire grin.
yup - and ya know what? I bet there's even creepier guys in the woodwork
Yes, it was David vs Goliath...
but the biggest moron on the show had to be Joe Kernan...why on earth is he allowed to ask questions off script?
Yeah, reminiscent of the whinging-it announcer in 'Best in Show'
It has become quite clear to me from the "idiot" who does not listen to opposing views that we now have WW III...and that war is a financial inflation war with China...to put it mildly.
He says "if China would adopt policy similar to the U.S. there would be a problem"
and that "since China isn't playing along it is basically their problem"?
Welcome to WW III...not a soul killed by physical act yet millions slaughtered by "fiscal" acts.
Typical Fed speak.
This dipshit is talking economics 101 and David is hitting him with real middle class rational economics and he is stuttering over his own words to counter him. Please explain Mr. Meyer what benefit is it to the middle class when their food and energy are higher, their credit rating is obliterated and they are still being forced to overpay for homes by 50% all so that the elite ruling class can protect their investments that were overleveraged and without risk consideration?
Seems to me their investment now is solely based on the American taxpayer subsidy. I wonder Mr. Meyer what your reco on Lehman would have been while they were collapsing? Did they deserve to be punished for illegal repo leverage hiding transactions and paying out billions in bonuses by creating temporary value that turned out to be temporary wealth?
The Federal Reserve has one mandate and that is to become an inflation machine which is why when Ben begins to pull out of the markets it will collapse and require an intervention that much sooner than previously. The cycles increase debt, volatility and the intervals between are small. That is the Fed.
Or Economics 101.
Meyer is saying that it's ok that people starve, just so long as the economic models are working. Keeping the banks solvent (impossible task that it is) at the expense of those unable to keep up with rising costs of every day necessities is alright. The mindset is the same that is set forth in reasons for wars: Let the fodder be sacrificed for the "higher good". Eff the bunch of 'em.
If you can find it, I would recommend that you listen to a tape called "Selling America" by Rich DeVoss, one of the founders of Amway (the tape is hopelessly dated, i.e., from the 1970's) -- he lays out just what the differences are between practical Capitalism and theoretical (bullsh!t) Socialism!
+100000000 fantastic
Fed=Department of Inflation
I like Einhorn. But in my opinion, he's overrated....He saw through the crap and put his money on LEH going belly up....But, I don't see lightening striking twice here....After all, he likes PFE for chrissakes.
Dont you worry, he will do well on Sprint. S has gollops of spectrum and is taking advantage of that. meanwhile Moody's downgrades VZ !! smell a fish ?
I guess Larry's "broader view" is to focus solely on the investment and speculation of the top 5% of wealth-holders in the US while ignoring the consumption of the bottom 60%.
That's broad, sure. Maybe a bit too broad for me, if you know what I mean.
Einhorn struck a cute tone with the "I'm worried about a bubble in corn and oil" bit.
Watch the video and exlcusive interview of Infamous Washington Crook Ben Bernanke "Rare CBS Interview!! Ben Bernanke 100% Certain of Economic Recovery – Just like in 2007” at (http://www.youtube.com/watch?v=jtl_jHhNXWo).
by Anonymous
And that is a? spot on answer. Bendover and grab your ankles America.
Great vid Chris!
Interest rates, meaning the discount rate, can actually go lower. Into the negative.
And nobody can stop it. The perception is that they are trying to keep interest rates as low as possible, but I think this is false, they want no abrupt changes and are doing everything possible to prevent from a negative discount rate.
Lower interest rates are a result of commercial banking selling treasuries they first don't own, and then having to buy them back when their bets go wrong.
I really enjoyed Einhorn. Sometimes the Market needs a little bit of reality thrown in. He is of the same opinion of myself that if Commodities, especially corn and oil go up there will be no recovery.
People will lose their spending ability when they pay more for food and Oil.
A bit of reality but traders are on a war path to make sure the only people to survive are themselves. America could burn to the ground and they would be happy as long as they made money.
This interview was just long enough to convince me that I wouldn't buy a used car from Larry Meyer.
MW = (NR + HE * T) * C
MW = Material Welfare
NR = Natural Resources
HE = Human Energy
T = Tools
C = Compassion
As long as Economists ignore this equation, the system heads for the Great Implosion.
Mr. Meyer impresses me as an 'homme de petite patrie.'
[meh]
Einhorn was awesome the whole s box this morning he's like peter schiff he wants the little guy to win. 99% these guys are worthless
Meyer claims that lowering interest rates hurts the dollar and boosts asset prices yet tries to claim that the increase in commodity prices is solely the result of demand from emerging economies. Really? Not only does this assertion require being able to separate demand from dollar devalution, it also requires explaining just why we didn't have blow off tops in cotton before the economy imploded and they started printing money.
How come no one mentions QE Lite? We are actually on QE3! More to come!
Hoser
If I were to Judge Larry Meyer by his body language, and not knowing the context of the conversation. I would consider one of the following scenarios very probable.
1. He comes home at 02:00 A.M. and his ultra religious wife asks why he has glitter all over his suit and smells like hooker.
2. The IRS sent him a bill for 2 million dollars and he has 24 hours to pay it.
3. He was trying to defend a monetary policy that is enslaving millions of Americans on national TV.
Sucks to be (blink blink) Larry. He doesn't believe his arguments anymore then we do. They are simply trying to keep the Titanic afloat long enough for the elites to get on a lifeboat. I plan on manning the oars before she goes down.
no. He DOES believe what he says.
or rather he is mindlessly repeating what he thinks he knows in the face of questions which suggest to anyone rational that what he believes is utter horseshit.
People do this all the time. They cannot of course admit they're wrong, and their profession and life study is a farce, so they stammeringly repeat their "talking points" until the cameras go off.
He's a firm believer in "Economics 101", read that to be the economic teachings currently de rigueur in our higher levels of education. That means that he believes in the models, the theories, and the expected outcomes. When the outcomes differ from the models, it is the fault of the Chinese -- and get this, for doing things the way WE do them! Is that not a hoot?
Meyer is a COMPLETE arrogant ass.
He has total conviction in the bullshit that he spews, but at the same time he is TOTALLY bullshitting. He's merely regurgitating, as he says, "economics 101" as if that shit is somehow equivalent to the Laws of Motion. In his mind, everything in "economics" is factual law, proven shit, when in reality it's just a bunch of faith-based bullshit.
At least the host notes that there is NO DEMAND even at 0%, but this Fed idiot thinks that lowering the dollar and cutting rates will stimulate demand. What a MORON.
EXCESS SUPPLY DOES NOT IMPLY DEMAND. HE is the one who doesn't understand economics 101. All he can do is parrot nonsensical chicago monetarist recipes.
well said, they do tend to put the cart before the horse in their attempts to model causality
Translation: "Economics 101" equals "As any FOOL knows...".
One arrogant fatfuck as you point out.
it is all a charade for the sheeple, the emperor has no clothes....
Meyer a tool, Einhorn a CNBC tool. Conclusion another fluff CNBC piece.
When I watched this video, it seemed to me that Einhorn had a time in his life where he might have had to actually had to do a budget and worry about food prices. It is obvious that Meyer never had to.
I am not usually violent, but I would love to have a CC Manhattan, up of course, and punch Meyer in the gut as hard as I could.
What a jerkoff.
Yeah, Meyer doesn't look like he's ever missed a meal -- and had a few extras on the side.
Wow, they really tried to stifle Einhorn's viewpoint in true CNBS fascist-style. Right after he cut Larry to the quick with "I'm worried about the bubble in corn and oil" he seems to be getting some sort of cue off camera. He looks to the left and right, I wonder what that was all about? This is why CNBS's viewership is plummeting off of the cliff and good riddance! Thank the lord baby jesus for Zero Hedge! I can sleep well tonight knowing ZH has got our back.
Gen X, Meet the Silent Generation.
Silents don't quite like the no-nonsense no BS approach of the Gen Xers.
This mess is going to be very interesting.
East Vs. West.
Generation X Vs The Silents, with the Neurotic Selfish Boomers as Referees. Good Lord. What a mess!
CPI is a joke. I think you could safely say after a mortgage, 90% of the populations second and third biggest monthly expenses are food and gas but neither are counted. Total BullSh*t.
The point David brought up about productivity (Greenspan bull shit miracle) is something I brought up to a Fed Regional Bank President in 1997. That in fact when productivity is rising excessively the proper policy response is to raise rates not lower them (This Fed Bank President admitted to me two years ago that in fact that’s what the should have done). But remember in 1997 we had the Asian contagion…….during which the FED keep rates two low for two long (and at the time said it was due to low inflation and high productivity). Based on current FED action we now know that the FED was again subsidizing the Asian countries (like they did Europe today) because they thought the world was going to fall apart. Today’s catastrophe is a mirror image of 1997 and the FED has been causing one disaster after another.
4:06 before Einhorn gets in a word.
Meyer needs to start a line of feminine hygiene products because he acted like a D-bag.
Definitions of Expert:
1. A drip under pressure.
2. Anyone that approaches a subject with an open mouth!
:-)
1... a has-been ("ex") drip under pressure ("spurt")
Einhorn is an intelligent guy and more importantly, he is disciplined.
As for the rest of it :
And it's a hard, it's a hard, it's a hard, and it's a hard
It's a hard rain's a-gonna fall ...
http://www.youtube.com/watch?v=jHrK6L91BgA
http://www.youtube.com/user/BobDylanVEVO
Average people can fuck things up, but to REALLY fuck things up it takes a bunch of PhD's that are experts on something that doesn't really work the way they think. Glad Meyer went in to economics and not aerospace engineering. He may destroy peoples fortunes, but not crash and burn them.
actually you could crash every plane every day forever and it would do less damage than oldtoadjew and his ilk inflict on a daily basis
Sorry, but had to add this regarding a "hard rain" ...
http://www.youtube.com/watch?v=7zwBHd4kll0&feature=related
Gen-X meet the silent Generation? WTF are you talking about? The fucking system is having a cardiac arrest and you think its the GenXers fault? Get a clue moron. This shit has been rolling down hill since I was a kid. It will be the prepared people vs. everyone else. We have no idea how bad things can really get.
Between minutes 6 and 7 aren't the flags flying opposite directions?