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Barry Sternlicht Warns "Everyone Is Holding Cash Because They Know When It Ends It's Gonna Get Ugly"
"The Fed is playing a very dangerous game," Starwood Capital's Barry Sternlicht warns,"and they need to stop." Sternlicht has quadrupled his firm's net worth in this time and, to the incredulity of the CNBC anchors, warns, "this is bad, this is a heroine addiction.. and now they are printing more money than the deficit." The outspoken CEO of the $29 billion fund, noted "all my friends who are money managers.. are much closer to the sell button than they ever were before," adding that "everyone's holding cash," since if they start to get nervous "volatility will come back instantly." Simply put, he concludes, "you know when this ends, it's gonna get ugly."
On Fed QE and investors' heroin addiction:
"they should knock this off. This is bad. This is a heroin addiction. The more you get on it, the worse it's going to get; the more asset values inflate."
Further to Sternlicht's point that "you're gonna hold cash",
A new survey of family offices by Citi finds that the wealthy are cash heavy—meaning they may fall short of the investment returns they're expecting.
Wealthy families have about 39 percent of their assets in cash, according to a recent poll of more than 50 large family office representatives from 20 countries conducted by Citi Private Bank.
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To those of little understanding it may seem like magic. And they would not know how to work it.
My concern is still the same as it has for some time. Before QE, anyone familiar with Fed policy would have said, "no way could the Fed print that much, and it couldn't be done." Well it has been done! My point? This Fed and USGov. have demonstrated they will do the unimaginable, so the future more than likely will include some other form(s) of heretofore unimaginable policy. All the fundamentals are gone and the rules have changed dramatically. Thus, my ID that I use here: What is The Hedge?
one after the other... xD
but still they are too greedy to quit the markets, because this fed rallye could go on and on and on and on. its just not clear, when exactly this will end.
Why do I have this vision of Gordon Gekko making calls to his hedgie buddies about WHEN to push the [coordinated] sell button??? Only if it is orchestrated can the 1% make money on this collapse. Somewhere a Rothschild is smiling.
Its complcated as they need to close the markets to the little people while they take theirs out.
Those guys are bad.
The guy manages 29 billion and does not know the difference between a bubble fueled by money and one fueled by credit. pityful.
When you have a bubble fueled by credit, hold cash because the credit is destroyed and the cash is king.
When you have a bubble fueled by fiat money, total different ball game, the vulnerability is not in the stocks (Zimbabwe) but in the cash itself and hte bonds. Hodl hard assets to protect yourself.
"When you have a bubble fueled by credit, hold cash because the credit is destroyed and the cash is king.
When you have a bubble fueled by fiat money, total different ball game, the vulnerability is not in the stocks (Zimbabwe) but in the cash itself and hte bonds. Hodl hard assets to protect yourself."
The money is created through credit. The national debt is at 17 trillion and growing.
Which bubble? The bond market bubble, the stock market bubble,
The US Dollar (as Reserve currency) bubble?
They all will crash, some stocks will be the most resilient.
So, some cash, some Gold, and anything else good like Silver or diamonds.
Then all the other good prepping things, food, water, salt, etc. TP, and sanitary napkins gets soggy, and crackers get stale.
Canned goods are good long term. Maybe few barrels of fresh potable water in the backyard or storage (ground floor only).
Its all in the timing.
Too bad he lacks your wisdom. Must be why he manages 29 billion and your wife has you managing getting the deposits on all your empty beer bottles.
I found a clip that sums up where we are from T2, just superimpose the Bernank's face over the characters. "I don't know how much longer I can hold this......"
http://www.youtube.com/watch?v=6adb0yXGYV4
The easiest form of manipulation is fear. The second easiest is hope.
The worst form of pollution is fear. The folks hanging out in this sewer thrives on it. Hope is the greatest falsifier of the truth.
What was that you said again? I find it very difficult to understand anything you are saying, what with you having Obamessiah's cock continually in your mouth.
PS: Does it, as I suspect, taste just like chicken?
Marley; Greed is up there somewhere.
yeah, paper wealth will vanish in a moment at some point in the future, look at Confederate paper currency, what's it worth today?
I'll be you 10,000 Reichsmarks you're wrong!
It's not ALL bad...
The closest I came to "issuing confetti money" (like bankers) was paying for a week-long yachting trip in the Adriatic, back in the 1980s, using Yugo Dinars. Shit, we were literally throwing "Tito" notes (few pennies) at the kids, who were scrounging to clean the boat, or do other menial chores. A week of insane indulgence and 'staying thirsty' cost each of us less than $200 (including EVERYTHING!). Ah, I miss the "good old days" of socialism and lack of price discovery in Tito's Yugoslavia. And all-cash, no paper or cyber-trail either, nor DUI or SUI (Sailing Under Influence) to worry about. In fact, I'm hard-pressed to think when we weren't "tipsy", one two or three sheets to the wind.
Now... you gotta pay real market prices and minimum wages, and paper/cyber trails up the ying-yang for sin & fun in the sun. Fuck that!
Based on this experience, I have a pretty good idea how those live who are "richer than you are*". Guys like Jamie, Lloyd, Barry...
/sarc
* 2013 quote from Jamie Dimon: "... and that's why I'm richer than you are".
"The Fed is playing a very dangerous game,"
They have been playing a dangerous game for a century.
They have been playing a very profitable game for a century.
@moneybots
Spot on comment
They upt'ed the anti in 1971
If you did it, it's only dangerous if you get caught, prosecuted and convicted.
If you were on the receiving end, well, then it's just as dangerous as the slow-boil of the frog.
Any fool can predict the failure of the currency. The guys that can tell me when--before it happens--will be the guy I want to hear.
@Oldballplayer
It's happening now and has been for many years.
How much money did you earn in your first job?
Relate to something you knew the price off back then and it's cost now?
And tell me the currency has not already faild a long long time ago.
It's been tough for the last 2 years being a gold/silver bug, but in 6-12-18 months time the sun will shine again.
I guess all those wealthy familys sold there paper gold when it first tanked and it is on the side lines waiting for the next up legg.
Funny that they maynot get to use it if " bailin happens " before!
I guess we all see it should callapse but just look at Japan.........this will go on for a long, long, long time untill it stops.
But the new 100$'s are so purty, with the gold ink well on them. I'm told it has a hidden meaning that all is well?
"Bernanke won't taper - that will be Yellen's problem"
#lol
A short who will need a butthole transplant is all I see. No grasp of history. No understanding how the system works. He is probably one of the clowns who thinks shorting PMs, well into a hyperinflation, and at their cheapest level vs the money supply in history, is a great idea. You can't outsmart math. No matter how hard the Fed tries, this ends only one way, and it is not with cash that is worth very much.
Sooner or later perhaps these crash-and-burn guys may be right, but they have been wrong-wrong so far for the last 4+ years. (You will notice they never tell you when to take the trade.)
If its gonna get ugly why is the government buying up all the bullets? Does Bamy have a "final solution" in mind?
If everyone is hoarding cash and everyone is hoarding stocks and the property values in the wealthiest areas are being driven up. What's to worry.
Plus we have the FED and Wall Street and the Congress and Senate and Executive branches all raking in the dough things can't go wrong, at least not until the rest of the world realizes the threat and decides to take action.
Like with the buildup of nuclear armed Chinese and Russian subs. So until you see those mushroom clouds BTFD or BTFATH it doesn't matter.
We are all doomed bitchez.
Another talking head. If you are so concerned vis a vis your duty as a WEALTH PRESERVER, why don't you just go 100% cash, before the seemingly inevitable collapse. #attentionseeker
Where is Andrew Jackson when you need him?
If everyone is holding cash, then there is nothing to sell. They've already sold. If there is nothing to sell, there will be no crash.
the really sad thing is the Fed is certain they are and have been doing the right thing. The thing that pisses me off is no one, NO ONE at the Fed has any of their own skin in the game. Govt. salary, pension, special health care plan, ABSOLUTELY NO RISK no matter what happens to the markets, investors, citizenry in general.
Did they remove this video?
from above thread...
This appears to be working for the moment: http://www.cnbc.com/id/101170641
Holding cash means digital credits in low yielding, highly liquid (so far) accounts. For me, it's stacks and stacks of 20's buried in the backyard. Hee, hee.
Better look out for the Feral Hawgs. They have a nose for STUFF like that.
Holding cash?? LMFAO! Record margin debt? Does that sound like everyones holding cash??? He's right about one thing though, it ends ugly.
We've seen financial collapses many times and they always end the same way. New laws are written that grossly favor the rich and screw the middle class. As far as a total meltdown goes, it can't happen. The rich can't let it happen. If the dollar becomes worthless then Japan and China are out trillions and no place to sell their stuff. They can't let it happen. The markets could plunge and shake out the weak sisters but everything will come roaring back. The world's rich will make it happen. Unlike other financial colllapses, the rest of the world is closely linked to the US markets and they HAVE to help us to help themselves. I think bad stuff is going to happen but it's getting really overblown.
Stocks are in the hands of pension funds, 401k plans and IRA's. Corps are buying back stock big time. Stock are in strong hands. The skyrocketing margin debt is short sellers who are borrowing on margin to hang onto their shorts. Margin calls are forcing buying not selling.
I think the Obama administration is not going that far back in history.... Following Mao, and Stalin both who had lots of miles and land to deal with.
every movie that features a "magic Negro" ends well, so just put your feet up on the seat in front and enjoy your overpriced stale popcorn!
How can they stop now? It is impossible: rates go up, stockmarket goes down, economy goes down, interest payments goes up, defficit goes up, dollar falls even more...
Taper Anyone? China, Interest Expense On The U.S. Debt Outstanding And Gold.
US Dollar is running wild today trying to understand the FED's talk. "We will taper at some point data permitting, but will keep ZIRP until 2016 now" - with this kind of double talk from the both sides of the mouth anyone can get confused very soon. What is the best cure from the Taper Impulsive Disorder? - Higher Interest Rates.ZeroHedge reports that they are moving up fast with the first sign of Taper confusion in the headlines and below you can find the reason why it is impossible to Taper anything now. Amount of US debt is so huge at 17.1 Trillion, that interest expense is second largest after 2011 even with record low interest rates and stands at 415.7 B by the end of October 2103. Now double it and apply to US Economy general statistics, then do the same after listening to John Williams from shadowstatistics.com about the real numbers. We guess that Chinese have run these numbers long time ago and buying all physical Gold now they can get. http://sufiy.blogspot.co.uk/2013/11/taper-anyone-china-interest-expense-on.html#
People holding cash are getting killed and gonna get killed, the smart move is to trade the fiat as fast as possible.
Why hold something the govt prints at will on the expectation they'll stop printing and be eaten by their base?
The Chinese, Indians, they're trading their fiat currencies for "stuff" as fast as possible.
When the music stops the cash will be worth nothing, real assets will be king, not fiat.
Not considering that all the accounts will be for sure Cyprused
I am expecting a cash position will pay off during the short period between when the ATMs stop working and the riots beginning. A few days to buy everything in sight. i've seen those videos where the guy can't give away a one ounce gold coin.
When is someone (who matters) going to stand up and say that the Fed is out to destroy the USD as the world reserve currecy?!?!
Why would they do this? Well, the Central Bankers have everything to gain by creating a supranational currecy.
When you have a successful criminal enterprise the first thing you do is consolidate and expand.
I'm holding all $5 of my cash right now.
Bart Chilton (or as Turd Ferguson calls him, "Thunderlips", has resigned from the CFTC:
http://www.cftc.gov/PressRoom/SpeechesTestimony/chiltonstatement110513
See ya, douchebag...way to be nothing but an ineffective shill for the bankster scum.
Revolving door, here I come! 21st century corruption, folks, this is what it looks like.
"at last—with the process coming nearly full circle, I can leave. It’s with incredible excitement and enthusiasm that I look forward to being able to move on"
Someone (anyone) please give me some cash to hold.
While we are still talkin' cash, my soon to be former, bank has informed me that payments against my account will be withdrawn on a "send by date". The system will select Corp. check or personal draft when payments are sent via snail mail. Electronic payment is also an option for them. "The system" will, of course, pay only on presentment of a check or draft.
Only if you call and wait on the phone for a 1/2 hour will they let you know how it's going to be. The branch manager did not know how the "new system" would function.
Excellent point..'they are even printing more money than the deficit.'
This seems to be significant. I have assumed that the main reason for QE was to fund the USG and prevent a drop in GDP (which would announce that we are in a depression).
Exceeding that sum what are we saying? I think we might be saying 'hey, things are worse than you thought. If we don't do this something even worse than just looking bad will happen'.
What could that be? I dunno total societal collapse? Iit would be nice if the governing would stop treating the governed like a bunch of children and have a frank discussion of our situation. I suspect things are way beyond that as panic would ensure if we got a whiff of our true course.
I think the FED is trying to kick start the economy...it's not working, so they keep upping the anty.
And as far as ..."total societal collapse..", ...From all the news about FEMA camps, militarizing the police, IRS buying ammo and weapons; it sounds like that is what they are planning on.
funny that Sternlicht doesn't seem to understand that "it" can never "end"... rates can never rise... 'they' cannot stop... and 'they' know it ... and after the last bout of jawboning proved to be completely false we should also know it too
Barry Sternlicht*, Barry Sotero:
Yeah, well, I know hundreds of millions of people who'd like to wish upon a star, but we won't see them or their concerns on prime time any time soon.
* Sternlicht = German for 'Starlight'
I'm just gonna hang out at Taylor's house until it blows over...
If cash is the bubble, how do you pop it? Altucher 20,000. Jus' sayin' ...
There is always a deflationary phase with a big crisis. That is why you hold cash. When it happens, cash is king, you take your cash and buy a nice property with water, room for crops and room for rental properties (so that you can have a community and rental income). Best to buy a property that is smack in the middle of a farming/agricultural area. And you buy food, tools, cars and other tangibles and barter/sale items with the rest of your cash. Now you've got water and food and shelter and income in whatever the new currency is, due to your rental property and sale items.
Gold and silver might be helpful but it is only a small part of the solution. Gold can remain stagnant or continue to drift down for many years. It is only a commodity now, not a store of wealth. Gold will rise only when the masses lose confidence in their government and currency. That is a long time coming.
Hyperinflation won't happen: we have the biggest bond market in the world and a printing press (hyperinflation only happens with governments that are revolutionary and have no bond market to protect). I believe there will be plenty of time before the USD loses its reserve currency status and is taken over by IMF SDRs or some other international electronic currency or basket of currencies. TPTB are desperate to maintain power and to be "right". They'll keep this boat afloat for a long long time. They have the means to do it.
The doom and gloom has already happened and will be ongoing (remember the frog in the pot of water meme?). There won't be any Armageddon or Apocalypse (all the Mad Max guns, ammo, gold, gas, etc. just doesn't make sense to me). Just the haves and have nots, living in a dysfunctional, deteriorating society. Water, food and shelter and tradeable skills is the real wealth. Just set yourself up so that you have those possibilities. I'm betting on "CASH WILL BE KING FOR A PERIOD OF TIME" for the future (and one will have to have it and act fast with it in order to create a decent future for themselves).
I believe we still have some time to get our ducks in a row. My wife and I are amassing cash, paying off all debt and building up our health right now as the first action.
My personal cash on hand position is getting out of hand. It's a good thing I don't smoke crack.
Bernanke was worried about his legacy, so couldn't contemplate tapering.
4cheeses sake, Bernanke!! YOUR legacy?