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Paul Singer Blasts "Manipulated" Markets, Says China Collapse "Way Bigger Than Subprime"
This week, dozens of billionaire fund managers, institutional investors, and financial market luminaries descended on that "iconic flagship of Taj Hotels on New York's Fifth Avenue" The Pierre with a mission to "deliver alpha" for conference host CNBC, a network which, incidentally, very often has a difficult time "finding alpha."
On the guest list was Elliott Management’s Paul Singer, who was on hand Wednesday to discuss the perils of investing in a world dominated by Keynesian central planners, paper money, the "craziness" of China’s margin-fueled equity bubble, and "connecting the dots."
Here are some notable bullets via Bloomberg:
- ELLIOTT’S SINGER: CHINA CRASH 'WAY BIGGER THAN SUBPRIME'
- SINGER ISN’T OPTIMISTIC ABOUT GREEK SITUATION
- SINGER SAYS GREECE SHOULD HAVE PULLED OUT OF EURO
And here's a recap, followed by a short video excerpt:
China's government "encouraged" an equities boom, and the "craziness" of the country's stock market echoes the late 1920s in the United States, hedge fund manager Paul Singer said Wednesday.
"It's not just a bull market, it's wild," the founder and president of Elliott Management said at the Delivering Alpha conference presented by CNBC and Institutional Investor.
Activity in China, which has included government efforts to ease policy and ramp up economic growth, reflects an "ever-growing" trend toward intervention, Singer said. He contended that bond-buying and easy interest rates in many corners of the world make it difficult to quantify how much markets are really worth.
China's Shanghai composite index, for instance, has climbed more than 80 percent in the last year.
"The prices are manipulated by governments," he said, adding that investors "can't trust" the value of some equities.
Singer also criticized the central banks in the United States and Europe, as he decried the risks of continued near-zero interest rate policy from the Federal Reserve. A recession in the U.S. or Europe amid loose monetary policy would turn "truly ugly" for global markets, he said.
A downturn in either area could lead to additional quantitative easing, bringing even more uncertainty into bonds.
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china collapse is subprime
China & Russia are going to become the two new military & economic superpowers of the world shortly, dominating the globe.
Zero Hedge has been claiming this for 6 straight years.
China is all of our market woes on steroids.. but more so on meth.. but even more so on Sterno or better yet on uranium dust that fuels the requirement to get naked in the streets.
But outside of that, the central bankers will print enough zeros to make everything alright.
Paul Singer is a role model for corruption, having bought off both the FDA and Congress to score a profit in the hundreds of millions of dollars from his purchase of URL Pharma. Singer made this money from a generic drug, colchicine, a thousand year old gout medication. In 2010, the FDA granted URL Pharma three year exclusivity on the sale of its branded version of colchicine. URL Pharma’s majority owner since 1997 was Elliott Associates L.P., a hedge fund run by the didactic Paul Singer. The FDA based this exclusivity on a one week study URL did on 185 subjects in 2009, some of whom received a placebo. That study was a scam, as the FDA well knew. Once URL Pharma got its exclusivity based on smoke, mirrors and payoffs, it raised the cost of the colchicine from about a dime to $5.00. The FDA threatened legal action against the other generic makers of colchicines, forcing them to stop selling their low cost versions of the drug.
In 2012, Takeda Pharmaceuticals paid $800 million for URL Pharma, just to get control of its brand name of colchicine, Colcrys. Also in 2012, U.S. Senator Orrin Hatch received a campaign contributions of $38,750 from Elliott Management, the first time Paul Singer gave Hatch campaign money on the books. Singer made another contribution of the same amount for the 2014 election cycle, making him one of Hatch’s top 20 donors. Senator Hatch was co-sponsor of the Hatch-Waxman amendments that allowed the FDA to create the three year exclusivity program [racket] in 2006.
Having pocketed his massive profits on URL Pharma (thanks to buying off the government) Paul Singer went on his merry way, occasionally posting online his opinions on the world economic affairs at the Zero Hedge website. For Takeda, the outlook is not so rosy. West Ward, a former generic manufacturer of colchicine, is again selling its generic version of the drug. Takeda filed suit in the Federal Circuit last year to block the sale, as did Elliott Associates LP. The latest legal news: “The U.S. Court of Appeals for the Federal Circuit issued an order Jan. 9 [2015] that essentially allows West-Ward Pharmaceuticals Corp., an Eatontown, N.J.-based generic-drug manufacturer, to begin selling a new branded version of colchicine.”
So, thanks to the corrupt FDA, bought and paid for, a gout medication went up in price from a dime to $5 a pill, patients using the drug were price gouged, Paul Singer made hundreds of millions of dollars and Takeda Pharmaceuticals got taken to the cleaners.
Don't worry, since there are no government bonds left to buy, everyone will copy the Japanese. HA. and buy everything else not nailed down like corporates then equity until there are no private enterprises left not on Iceland.
I was for manipulated markets and, then I started losing money and I was against them.
Sincerely, any Wall Street douche
Guess the guy was long China
Manipulated markets are exactly like gambling. Actually, gambling is better because the odds are known and you can usually choose.
Best of luck to you in your investing.
"Greece should've pulled out of euro."
Says the guy that bot greek bonds.
Knowing what Greece should have done and knowing what Greece would do is not a sin. Plenty on ZH called it from the beginning.
China's economy is incomprehensible to Western markets.
Investing is now betting on how long you think a government can fake it.
"he said, adding that investors "can't trust" the value of some equities."
Is he talking about China or the US?
Yes.
Don't worry it's contained to China.
lulz
I'll try not to.
lulz
Where do you think all the "western" pensions and savings and investments are?
lulz
I don't know who this Lulz guy is, but people sure seem to love his quotes.
Not mine. mine are at the bottom of the lake!
Everything is coming down. Can anybody tell me which country is truly growing? How long is going to take before the house of cards is going to collapse. One month, three months.....
Yes that magical country is called BitCoin. Get some.
I guess Iran is the best bet for growth from here on.
The Philippines was hoping for 7% growth this year, but with falling exports and manufacturing, it was only 5.2% in Q2. That's still pretty good these days though when you look around.
Paul Singer is pulling the antisemitism card to have his way with Samsung. Apparently describing him as a vulture is Anti-semitic.
http://www.smh.com.au/it-pro/business-it/samsung-firm-removes-online-car...
For those who have eyes to see.
Vultures eat dead meat.
The obvious observation is that certain people must view themselves as vultures and object when they are depicted as such. How else does one explain associating the commonly used vulture metaphor for "greedy blackhearted bastards" for Jewishness?
Man, that is a lame complaint.
1. It is commonly known as a vulture fund, though I can't think of anything vultures have done to deserve that association. The man is scum, not a vulture.
2. Asians in general don't know anything about traditional anti-semitism symbols, etc. They have no guilt complex over what has happened to Jewish people in the past. When you mention that it's not appropriate to wear the swastika on their clothes, they say it's been used as a human decoration for thousand of years by Hindus, Buddhists and many other religions. It's part of the name of several schools in Hong Kong.
Singer, isn't he the gay Commie billionaire leftist trying to collect payment from his own leftist agents in Argentina?
He gave them* the money, or were they* not his agents but independent looters and liars?
Singer had no idea Argentina was in an orgy of Socialist theft looting and lying?
I bet he owns a whole lot of Puerto Rican debt too, let's hope the Puerto Ricans don't figure out they can write their own national and municipal bankrupcy laws, or they can change their corporate residence to Delaware and really clusterfuck the litigation, Biden would love that.
I believe Sandra Sotomayor did her thesis on Puerto Rican sovereignty and undersea mineral and fishing rights.
Or is Puerto Rico a non state "Pig farm" like Greece and France stuck with no way to cut spending and subject to ever incerasing levels of tax parasite voter liquidation?
The EU "rescue" is an increase national and local and EU debt and more invasion and EU invasion liabilities.
Greece leaving could turn their immigration liability into a cash cow and EU liability, like Mexico does to CA.
pundits everywhere singing the zh anthem, HA...
Singer also criticized the central banks in the United States and Europe, as he decried the risks of continued near-zero interest rate policy from the Federal Reserve. A recession in the U.S. or Europe amid loose monetary policy would turn "truly ugly" for global markets, he said."
All of that, and the Chinese Helter Skelter nightmare, doesn't matter anymore; collapse is imminent. Probably this year. If we can dismantle all of these broken and warping machines created over the last 100 years or so (fully holding crooks finally accountable), while instituting legitimate structures, then, perhaps it'll all be worth it.
But, it makes little sense to continue trying to rehab what is; it can't be made to heel.
Better to spend time and limited resources on preparing to endure and rebuild.
Hopefully, peacefully...
m
Now every country is copying the U.S. Treasury with their own plunge protection team and Government trading desk with unlimited margin.What's the fair price of any security with endless Government intervention?
frbny did what, 25 trillion or so, a few years ago? they stand at the ready to monetize any/all if/when their holiday bonus pool would benefit
singer is an idiot -- a relatively miniscule $150 billion would have taken care of every problem mortgage. calling it subprime is a lie
http://dilbert.com/search_results?terms=thanks+for+the+deposit
Hunt that financial pervert down and re-distribute his stolen wealth.
"Financial Pervert", I like that.
I theorize that there is no such a thing as a bubble when there is no risk at all. And there is no risk if everyone has a printing press, or access to one. If that is correct, anyone who is short anything must be a dumbass. And that includes gold, even though it is the fad short half of every long trade. Just because you have not stepped on a mine yet does not mean you are not in a minefield.