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Steinhardt On The Fed's Failure And The End Of Wall Street As We Know It
The low interest rate 'logic' is not working and "the economy can't gain any zest, can't gain any vigor" is how Michael Steinhardt describes the crushing of 'widows and orphans' that the Fed has embarked upon. In a Bloomberg TV interview, the WisdomTree chairman notes the broad 'pall' over the equity markets (conjuring images of a funereal procession down Trinity Street) pointing out that there is no reason to be wildly bullish here. Citing Wall Street's lack of 'spirit', he questions the entire raison d'etre of efficient capital transfer as becoming secondary as he rather poignantly asks who has benefited from Fed's policies "Certainly the banks. But ordinarily you'd say, well, low interest rates benefit housing. It certainly hasn't benefited housing." Reflecting on his performance as a hedge fund manager he concludes that extraordinary performance is sadly not necessary anymore as the money flowing into hedge funds means people do exceptionally well for themselves despite diminished performance. While finding equities broadly unappealing, and suggesting talk of QE3 should cease, he notes there are pockets he would invest in but ends by noting that "Bonds are no place to be".
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Easy for him to boo hoo over the good ol days. The gov pinned the cat down & Wall St skinned it.... too bad ya can only do that once, eh? He got his share of the skin, retired, and we're left with a maggot ridden cat carcass. Thanks Bud.
1 Trillion dollar spent on infrastructures upgrades in the US instead of pissing that money away in Iraq and Afghanistan probably would have resulted in an economic turnaround by now.
Why can I see it. No degree in Economics.
Shovel ready bullshit! Now STFU!
No oil in roads and bridges. Sorry, you're behind modern reality.
Oil is everything. Nothing else matters.
We're not collectively advanced enough to find any solution to the oil problem.
Oil alternatives must be found, or people must die to reduce consumption.
Which do you think is the easiest option? Death is all around us and we're fat and blissful. The 'reality' of a western system that reaped the benefits of corporate and military conquest in the 19th and 20th centuries is about to crash into the reality that the rest of the world faces.
So smile; take your meds and keep telling yourself that everything's going to be all right. When it's your time to die, it'll be less painful that way. Suffering isn't so hard when we're too stupid to recognize it.
Why does Zero Hedge give space for a manipulating crook to spread his bullshit?
"But ordinarily you'd say, well, low interest rates benefit housing."
OK government brainiacs. How the fuck can you buy a house if you don't have a goddamn job. And fucking take the blinders off and stop fudging the employment stats. Just because you asshats changed the reporting rules in the 1990s to make the stats look better doesn't change the reality of the situation. We have depression level unemployment.
Yeah, buy a house!
Low interest fucks everyone except the banks which I'm sure is the plan.
While we're bashing banksters mayswell throw this turd under the bus.
'The U.S. needs more big banks, not less, if it is going to remain a world power and avoid the fate of some debt-laden European countries, analyst Dick Bove said.'
The guy just looks like he stinks.
Into prison with the others he goes. Capitol punishment for banksters and their gangs. On with the revolution.
He is inadvertantly right. If everyone banked at a local bank that had at most 10 branches Wall St. wouldn't have near the power they have now. It is too late now though, the big banks don't need depositors anymore when they have the Fed printing fiat. Course, with only 6% reserve ratios consumers withdrawing deposits and putting it in the mattresses would hurt a lot. They pay you less than the mattress too if you count fees.
Huge corporations already use bonds much more than big bank loans so I am not sure they have any useful purpose any more that can't be better filled by much smaller banks. Don't think any states allow state chartered banks to have prop desks and still have similar laws as Glass-Steagall.
the end of that clip is awesome. i actually believe steinhardt when he says they thought about their decisions in terms of how much of a positive impact they would have on the country as a whole. those of us born in the 80s think like this. we'll save the world.
sweet old man. really? too old to pay even. had to buy something to sniff at the elizabeth taylor auction.
that really is lots of fun. i couldn't help myself.
http://www.youtube.com/watch?v=RPZHWLlCNB4
Anybody who has the guts to say that Buffett is fraud, is a giant. This guy did. Click above, at about 6 min.
"(Reuters) - Tensions among some of the world's leading economies are on a boil over a plan to raise new resources for the International Monetary Fund to contain the euro zone debt crisis and a quest by emerging economies to win more say in the global lender."
http://in.reuters.com/article/2012/04/13/imf-idINDEE83C0IC20120413?feedT...
Fuck you, Bernanke!
The fed is taking the widow and orphan dollars and giving it to the banks and the government.
This is exactly as planned.
Did he say Pall?
No shit, we are waiting for the can to hit the wall and all hell to break lose!
Look how his body language changes when he talks about the new hedge fund managers. I think he's really upset because he knows that if he had his performance in today's world he'd be a lot richer. He should stop hating on the new guys and enjoy the fruits of his labor, I'm sure he's not hurting any.
Mr. Steinhardt is truly one of investment history's greats. Having said that "making interest calls" when the Federal Reserve is monetizing, the economy is slowing and even Bill Gross can't get it right is not a game i would...even if i could...play. Nice call on gold today btw...
http://www.youtube.com/watch?v=oM4bCiKIJuA&feature=player_detailpage
If it's true what Ben says that US economy can't survive without Wall Street, and that Wall Street is the economy.............then we just flat out need a new system because im tired of getting it broke off in my ass time after time after time. Fuck these morons.
The Federal Reserve never failed and never fails for its intended purpose.
in this case...
Perception of failure is actually your failure of perception.
Hook Line and Sphincter (!)J
Question: Why the Fuck has this video been disabled?
Answer: The scared and fearful Mickey Mouse illusion is crashing down on them.
I keep hearing people saying that they do not understand why the FED continues to keep rates low and that performance wise the logical conclusion is that this is a failure of policy. By implication that letting rates rise will somehow higher interst rates will "invigorate" the economy.
IMO, Sovereigns and their respective CBs are pumping water out of the boats as fast as it takes to keep the boats floating, hoping to limp into harbor for major hull repairs.
This is not about what it was about in prior downturns. If Interest rates rise then entire economies and states will go driectly to the bottom. Witness Greece. Once the spending taps (excessive debt accumulation) stopped up they are now spiraling into a severe deflationary depression.
The Icelanders gave the finger to the banks and removed the politicians that were pushing to endebt Iceland for generations. They did not socialize the losses. They did not allow the use of sovereign debt to transfer losses to the nation. ... and they are limping back into an economic normality.
To me its obvious that every nation whose politicians are dominated by banking interests, which has gone the path of socializing losses and trying to use sovereign debt to pretend they still have a functioning economy is on the same path as Greece.
They want the economy to fail, that is why they don't understand why the fed is trying to keep the economy afloat
I'm really surprised ZH posted a Steinhardt clip. This guy is the definition of disingenuous.
I think Jimmy Cramer is starting to listen to the " Zero Hedge" crew! It's the Great " Krasting/ Santelli" combination!
Plus Jimmy has that " Garden Knome", running his charitable trust!
Ship that guy to Canberra with a " Silver Beard & red suit" IN JULY! He does he realize where "jpy" flows/model funds( sovereign), are going?
Japan has been doing pretty well on Production numbers as of late. I wish they were worse!
BoJ hates that #2 GDP loss to China! BIG TIME!
In addressing some of the Jewish-related mail herein:
Jews are specially blessed by God in physical blessings. Their God is the God of the Jews, who is the God of the Bible, the One God and the Truine God. Abraham came from Shinar, he became the first Jew. Before him there was Shem (Sem), son of Noah and Eber (Hebrew). It was gradual, but God chose a people. America has been blessed because she welcomed Jews (though during WWII they were turned away from every harbor on the eastcoast), while Russia has been very antisemetic.
But spiritually, not every Jew is blessed and not all Jews go to heaven when they die. I would say, tragically most go to hell, because their leaders have rejected Yeshua Messiah. Its got nothing to do with Nazi Germany or the middle ages/Catholic Church and everything to do with what Paul described as a hardening God has put upon them. The gentiles have an entrance now into the Kingdom of God through believing on the death, burial and resrrection of Christ Jesus. Don't waste your opportunity. Because a time is coming when Israel will become right with God and His Messiah. and will be saved nationally. Gentiles will at that time almost all be antisemitic and kept out of the Kingdom. So, "be wise you kings of the earth...kiss the Son lest He become angry and you perish from the way (of life)."
you have lost your mind. do you need help finding it?
I have lost my mind? You accuse me of being crazy? Why thank you. We believers are not really of this world. Maybe what I'm saying-- writing-- is way over your head? I think some hear me and are drawn to the Kingdom... maybe someone reading these archives years later.
It's Triune, not Truine, dude. Look it up. Your Bible bile would be so much more believeable if you actually knew what the hell you were talking about.
Tyler is the chosen one you shit-brain-monkey so you give Jew's a bad name here on the hedge instead of STFU.
And Steinhardt wasn't particularly illuminating -- he was rather restrained actually.....if he had to invest today 110% of his time, I suspect in his heart he doesn't believe he'd still have those 20%+ returns, and all thanks to central (bank) planning bs and bernank's criminal hosing of the populace.
that was the most racist (ignorant) thing i've read in quite a while here at ZH.
No_Limit_vast-dom is whippin up da' anger!! Just ignore these flakes.
He's old and tired......but he was very good for twenty years ( despite nasty personal rep) so have a nice retirement Mr. S.
Food for thought. This week Calendar. Next week is light through Wednesday <> JP. Morgan,(posted) Vampire Squid,(beats) some tech sector, consumer cyclicals, telecom, and the rest!
I heart Steinhardt.
You're the man! Legend.
Thank goodness the anchorbabe was sort of cute in an inbred Wall Street media sort of way, otherwise I would have felt robbed. I mean, did he say a single thing that virtually every reader here hasn't already figured out. Careful, Durden. This site's turning into confirmation bias run amok.
To think a compliment could be met with such a perfunctory attack I never would have made it.
Apologies.
you so don't get it.
Stop being black.
It fits you well, but just stop.
Most everyone has an opinion including me, but that is all I read nowadays, opinions. Depending on day of the week it is positive or negative.
This whole economics thing is like psychology and is so diluted it really doesn't make any sense. When I grew up you earned a dollar, spent, invested it or saved it. Hopefully the money you saved or invested made some more. If you lost it, that is the risk one took. It was simple.
You either had coin or you didn't. I remember members of a native tribe living in a teepee beside the Red River in -20 below temperatures in the nineteen sixties and they survived.
Now if you don't have coin you require an apartment, medical care, education, a car, television, internet and food stamps to survive. A country needs nukes, submarines, missiles, fifth generation fighters, money to pay despots and for bribery to survive, even if no country is threatening with outright war.
Something doesn't add up.
I see people going to work, shop, driving and living in decent homes. I haven't noticed any tent cities yet, although I heard they be. When I start seeing people in the streets foraging for food then I know we have a problem. Right now it looks pretty good, but that is in my eyes only.
Another stupid article totally missing the mark. ZH really needs to raise its standards and stop posting bullshit articles like this one.
Author doesn't have a fucking clue what will be the end of the Fed and Wall Street (and the federal govt).
It's currency collapse. US dollar being rejected by the rest of the world then collapsing in value to nothing.
But everybody's afraid to mention currency collapse. Why? Because the dollars in their pocket collapse too. Along with the dollars in their paycheck, and the dollars in their bank account, and the dollars in their money market fund, and any other dollars they have anywhere else. Plus treasuries and bonds and any other dollar-based "investments" they have, all becoming worthless when the dollar becomes worthless.
Currency collapse is when gold bugs (and silver bugs) will be rewarded.
Until then they won't. They'll be ridiculed by dollar worshipers ...right up to the day the dollar collapses.