Paul Singer: "I'm Very Concerned About The Global Economy"

Tyler Durden's picture

Elliott Management Corp Founder Paul Singer stepped up his criticism of the unprecedented monetary stimulus unleashed by the Federal Reserve and other major central banks in Europe and Asia in the wake of the financial crisis, arguing that ballooning asset valuations and consumer debt pose even greater risks to the economy than they did back in 2008.

Singer, who discussed his views with David Rubenstein during an appearance on "The David Rubenstein Show,” said he doesn’t believe the market’s confidence in central bankers is justified. He also criticized the Obama administration’s “growth suppressive” fiscal policies.

“I’m very concerned about where we are in terms of the financial system, the American economy, the global economy. After nine years of what I would regard as monetary extremism, combined with growth-suppressive fiscal policies regulatory and tax, it's created a distorted recovery and its partially responsible for this exacerbation of inequality and the incomplete recovery has caused this middle-class stress and edginess around the world that has led to fringe policies and fringe thoughts – you know populism.

 

After nine years of this artificial levitation on the part of financial assets, high-end real estate, art, the things that rich people buy, what we have today is a global financial system that’s just about as leveraged, and in many cases more leveraged, than 2008. I don’t think the financial system is more sound. I don’t think the fixes that have been put into place have actually created a sound financial system.

 

I don’t believe confidence is justified in policy makers and central bankers and the fact that confidence has not been lost up to now is obvious. But if and when confidence is lost, I think it could be lost in a very abrupt fashion causing, conceivably, a ruckus in stock markets and bond markets.”

Elliott Management Corp, the activist hedge fund founded by Singer in 1977, made headlines last year when the government of Argentina agreed to pay it and three other funds nearly $5 billion to settle claims on bonds that Argentina had defaulted on 15 years prior.

The Fed has telegraphed its intentions to raise interests and unwind its balance sheet seemingly no matter what happens with economic data, and some believe the ECB could soon follow suit by tapering its own asset purchases as the universe of available bonds grows precariously thin. Meanwhile, at the BOJ, pressure is mounting for the central bank to reevaluate its own asset-buying program.
 

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south40_dreams's picture

There is no global economy. There are just dueling central banks

SilvaDolla's picture

I wish I could upvote this again and again.

BullyBearish's picture

yeah, but you're one of the A$$HOLES who have benefited in a YUGE way from your friends in the fed...confidence, yeah right...

Latitude25's picture

Dueling?  More like masturbating each other.

EX-floor hedger's picture

BOJ - ECB - PBOC - Fed.... it's sometimes referred to as a "circle-jerk"...

junction's picture

Paul Singer engineered the corrupt FDA giving his company's version of colchicine,"Colcrys", exclusivity in the United States.  "Exclusivity" that included false testing of the test that may have killed some of the test subjects, a fact which the FDA is still covering up. 

Law360, New York (September 23, 2015, 1:59 PM EDT) -- Takeda Pharmaceuticals USA Inc. manipulated a clinical trial to get approval to market a gout drug, giving it a monopoly that it used to hike the price of the drug 5,000 percent, a False Claims Act suit unsealed on Tuesday in Illinois federal court claims. 
 

 

Takeda designed a study that tested a dangerously high dose of the drug, colchicine, against a more moderate dose, falsely claiming that the high amount was the industry standard, according to the suit. When 77 percent of trial participants were poisoned by the higher dose, Takeda claimed that the lower dose was a breakthrough and obtained both U.S. Food and Drug Administration and U.S. Patent and Trademark Office approval, giving it exclusivity on the drug until 2028. The drug, which had previously been available from several companies for as low as nine cents a pill, became available solely through Takeda for $4.85 a pill, according to the qui tam suit brought by a customer.

The Duke of New York A No.1's picture

Tanking the US Dollar will put a band-aid on things ... for a while.

 

 

small axe's picture

whoa, didn't see that coming. Dude is a regular rocket scientist.

zzzz88's picture

do not worry.

printing toilet papers can solve all problems

Paul Morphy's picture

Singer is correct.

 

The real question is why the rest of the consensus insist on continuing to sing from the same banjaxed hymn sheet? Whistling by the graveyard.

taketheredpill's picture

 

 

"this middle-class stress and edginess around the world that has led to fringe policies and fringe thoughts..."

 

More like after decades of being fucked the US middle class has finally (started to?) realized that it whether they vote for A or B it doesn't make a difference because both parties have been bought and paid for.  They don't belong to the people anymore and they haven't for a long, long time.

The US is screaming out for a 3rd political party to come in and clean house.


Mustafa Kemal's picture

"The US is screaming out for a 3rd political party to come in and clean house."

Not really, when the disaffected left and the disaffected right actually start speaking to one another, then we will have a majority. But intil then, there is no such screaming IMO

slightlyskeptical's picture

We need to end the party system. Everyone should be independent and have their own individual "label".

And then allow line item voting on every piece of legislation.

debtor of last resort's picture

Third party is you asshole. I'm from the Netherlands and we have 32+ 'parties', so fuck you, it doesn't make any difference.

We're out of luck and cheap energy. Not in that order.

TBT or not TBT's picture

Try getting your freedom of speech back over there.   When you can call Islam what it is over there you'll be at the beginning of some kind of future.  

JRobby's picture

That is the deal +10,000

Fed, Legislature, Courts, GOVT "Agencies" owned by the Oligarchy. Trump's election and the subsequent shit show of fake news, fake legislature, fake investigations, rebelling courts, etc., etc. should be sending this message loud and clear to the electorate.

RedBaron616's picture

I wish your last statement were true, but voters ignore third parties on the ballot all the time.

TeethVillage88s's picture

The solution may Not begin with:

"The US is screaming out for a 3rd political party to come in and clean house"

But...

- The people will go to lowest 'Common Denominator' or a 'Populist kind of Rebellion'
- Formal Politics has long taken a backseat to 'Bullshit Politics' ... TM TeethVillage/Chambawamba
- Formal Politic by Great Empires, by Great Democracies like USA... have all be bullshit... like Mafia Control... like Devolution... and Patriots that would have been Honest are now plugging their Mottos with other brand names like Chambawamba

Fuck u Chambawamba lol

Lowest Denominator... Riots, ... not 3rd Party! I'd say 'No Political Party IS the Rising Up of the people.' wth... u think there is a no war party?

debtor of last resort's picture

You ran out of affordable energy 30 years ago, fuckup. Trying to compensate it with QE is a dead end. People will die by the hundreds of millions. There's no global economy fuckup. Not even in your dreams. When your life is currency, you think and you act currency. And you should die last.

BritBob's picture

Elliott Management Corp, the activist hedge fund founded by Singer in 1977, made headlines last year when the government of Argentina agreed to pay it and three other funds nearly $5 billion to settle claims on bonds that Argentina had defaulted on 15 years prior.

Easiest way to hurt Argentina - How can Argentina claim the Falklands when she has never legally owned them?

Falklands- Never Belonged to Argentina (single page) :

https://www.academia.edu/31111843/Falklands_Never_Belonged_to_Argentina

It blows away that ole Malvinas myth. But the info has to be drip fed to the general population otherwise they'd be mass hysteria!

Griffin's picture

3 Swedish MP's may have to resign, or be fired, because of a security leak.

Apparently IBM was hired to handle IT services for the state and outsourced this to foreign subcontractors. 

This leak contained data from the government and the security police.

http://www.reuters.com/article/us-sweden-securityleak-idUSKBN1A926F?il=0

 

All kinds of problems in Sweden 

https://www.thelocal.se/20170724/children-as-young-as-nine-caught-robbin...

Anon2017's picture

Like the Dindus on the train in Oakland in April. Wih Sweden's foolish immigration policy, I'm not surprised.

Batman11's picture

After ransacking everything with his buddies, he wonders why the global economy is fucked.

Typical psychopath.

 

Batman11's picture

Sacrificed any children recently you c**t?

 

wholy1's picture

Paul S[t]inger - a financial bottom-feeder/vulture with NO redeeming value contributing ZILCH to REAL PRODUCTIVITY.

ceilidh_trail's picture

Ask BTU shareholders or bondholders what they think of Singer.

Rick Cerone's picture

Concerned, yet not horrified.

TeethVillage88s's picture

Paul "Vulture Capitalist" Singer is worried that he will see great buying opportunities in the future?

What????????????????????????????????????????????????????????????????????????????????????????????????????

venturen's picture

more lipstick for the pig please

agstacks's picture
"I'm Very Concerned About The Global Economy"

 

"I'm very concerned my gravy train may be hitting the end of the line."  

 

FIFY

_freedom_lover_'s picture

I agree with most what he said except for below. 

"that has led to fringe policies and fringe thoughts – you know populism." 

What the globalists did with the global economy is a disaster, but has nothing to do with populism. This guy is an idiot. Blaming the solution for the problems I'm pretty sure he helped create. 

turkey george palmer's picture

Are they all going short next week or something. How come  stocks all of a sudden suck now

Lost in translation's picture

Sorry, Catfish. You're part of the problem, poster boy for the malaise.

Your kind is destined to swing from a streetlight by the neck, via piano wire.

We're coming for you, Catfish...

Pumpkin's picture

Fiat money controlled by Satanists.  I don't know why he is so pessimistic.

TeethVillage88s's picture

U Fuckin' Fuck!! More like Jim Richards says in Currency Wars... started in 2000 after Dot Com Crash and Recession... followed by many iterations till 2004 when Greenspan went all in to avoid Chinese 'Deflation' in USA... ( 16 Years Fiscal & Monetary Policy, Manipulation, 2 US Presidential Admins)

“I’m very concerned about where we are in terms of the financial system, the American economy, the global economy. ....

After nine years of this artificial levitation on the part of financial assets, high-end real estate, art, the things that rich people buy, ...."

TeethVillage88s's picture

Vote
<== Paul Singer not Cute Boy, not innocent, bullst on REFORMs
<== Paul Singer cute, innocent boy, no Conflicts

ludwigvmises's picture

Singer is probably one of the smartest investors at the moment. Can't disregard his warnings unlike other guys who are merely broken clocks.

veritas semper vinces's picture

There is no investing anymore. There is only CAPITAL missallocation and distruction done by the Federal Reserve Crime Syndicate and free money for these insider boys and a big "screw you" for the rest of us.

bunkers's picture

If WE don't hang banksters, we deserve what we get.

barysenter's picture

There is No Global Economy, Pauli. It's a con, model, a construct, a big fat gay Al Gore fantasy Saipan masseuse hentai toon. Sucker!

TeethVillage88s's picture

I was going to say something provocative...

But... fuck it. It is fight club... limited understanding, limited knowledge (including me), limited education (including me)... limited tolerance, limited exposure to Wall Street Type Corruption... Limited DC Type Corruption... Limited Understanding of Hollywood Type Corruption... no recollection of Laurel Canyon type psychedelic-CIA- Intel Agency Corruption...

Well... No one ever said the Zero-hedge was largely/Correlated to the Corruption of USA!!

oops... we are really sick people if we understand the actual US Business Environment!! Wow

Wow. ZH. Tyler.

MK ULTRA Alpha's picture

The central banks are at war with each other. The Chinese CB won't stop printing, adding liquidity.The US and EU CB have printed more in a short period than in the history of banking. There are huge bubbles everywhere.

When the bubbles pop, it will be real bad.

It is good time for common people to buy silver. Silver eagles are cheap right now. If one can buy one or ten each month, this is smart protection for common people.

A weapon to protect one's self is good too.