A classic tale of buying ridiculously low and creating massive value in the process
"Colombia is the next star of Latin America" - Sam Zell
“If you’re unhappy with what you’ve had over the last 50 years, you have an unfortunate misappraisal of life... should all be prepared for adjusting to a world that is harder..."
Hedge Fund Manager Fears "Sudden, Pervasive Loss Of Faith" In Markets; Says "It's A Truly Scary Time"Submitted by Tyler Durden on 03/17/2015 17:45 -0400
First it was Sam Zell, warning "it's very likely that something has to give here." Then George Soros upped his market hedge drastically, followed by Carl Icahn's "worry about excessive money printing," adding that he was "very nervous" about US equity markets. "Financial markets are euphoric," warned Stan Druckenmiller, warning that "market participants are pricing in hardly any risks," and Crispin Odey explained "there are consequences to CB actions," stating that "we have front-row seats to an imminent market shock." And now hedge fund manager Andy Redleaf (who predicted "there is going to be a panic in credit markets," in 2007) has come out with the most ominous of warnings yet among the billionaire crowd... "I think it is a truly scary time."
Billionaire Jeff Greene - who flew his wife, children and two nannies on a private jet plane to Davos for the week - has some words of wisdom for the average American: "America’s lifestyle expectations are far too high and need to be adjusted so we have less things and a smaller, better existence. We need to reinvent our whole system of life."
Welcome To The Oligarch Recovery: Majority Of Public School Students Are In Poverty For First Time In 50 YearsSubmitted by Tyler Durden on 01/18/2015 12:56 -0400
Despite the authorities' best efforts to keep everything orderly, we know how this global Game of Geopolitical Tetris ends: "Players lose a typical game of Tetris when they can no longer keep up with the increasing speed, and the Tetriminos stack up to the top of the playing field. This is commonly referred to as topping out."
"I’m tired of being outraged!"
Every year, David Collum writes a detailed "Year in Review" synopsis full of keen perspective and plenty of wit. This year's is no exception. "I have not seen a year in which so many risks - some truly existential - piled up so quickly. Each risk has its own, often unknown, probability of morphing into a destructive force. It feels like we’re in the final throes of a geopolitical Game of Tetris as financial and political authorities race to place the pieces correctly. But the acceleration is palpable. The proximate trigger for pain and ultimately a collapse can be small, as anyone who’s ever stepped barefoot on a Lego knows..."
Outspoken realist billionaire Sam Zell tells Fox's Maria Bartiromo, "the US economy is bifurcated," noting that "the very top has done very well as The Fed's QE 'saved the system'," but, he adds, the 90% that did not benefit from that "have seen wages go down and the recent election showed a lot of discomfort and a lack of trust." A hopeful money-honey asks whether the president will work with the Republicans to improve this situation, Zell lashes back, "isn't the question whether the president wants to work with anybody to create anything?"
Two headlines came across my screen today, which taken together pretty much sum up the effects of policy decisions made by Central Bankers and politicians since the financial crisis. The financial oligarchs got bailed out, and the rich got richer due to decisions made by “leaders” around the globe. As such, the entire planet has now been transformed into a neo-feudal tinderbox.
Today's markets exist in an Oz-like, fantasy world. For 5 years now, stock and bond prices have risen like Dorothy's balloon, with hardly a puff of downdraft to spoil the fun. Everybody likes higher prices, so let's have them always go up! Forever! But what if...
Icahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The PlungeSubmitted by Tyler Durden on 09/03/2014 23:03 -0400
"The stock market is at an all-time, but economic activity is not at an all-time," explains billionaire investor Sam Zell adding that "I don't remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people's thinking." Zell concludes that "this is the first time I ever remember where having cash isn't such a terrible thing." Zell's calls should not be shocking following Soros. Druckenmiller, and Icahn's warnings that there is trouble ahead.
"One reason we know voters will embrace populism is that they already have. It’s what they thought they were getting with Obama...He turned out to be something else altogether. Not long ago optimism was in vogue. Obama’s slogan then was “Yes we can.” Today it could be “It turns out we can’t.”"
"...policymaking is dominated by powerful business organizations and a small number of affluent Americans, then America’s claims to being a democratic society are seriously threatened...
...even when 80% of the population favored a particular public policy change, it was only instituted 43% of the time."
UPDATE: The BLM has ceased rounding up Bundy's cattle - because of safety concerns
If you haven’t been following the unfolding drama at the Bundy Ranch about 80 miles northeast of Las Vegas you need to start now. The escalating confrontation between irate local residents and federal agents of the Bureau of Land Management (BLM) has the potential to take a very dangerous turn for the worse at any moment, as hundreds of militia members from states across the country are expected to descend upon the area and make a stand with 67-year-old Nevada rancher Cliven Bundy. The kindling for social upheaval has been growing in America for quite some time. Disrespectful and ignorant statements from billionaire oligarchs only make it worse. The question in my mind has always been what will the catalyst be to spark the brushfire? Will it be the Bundy Ranch? We’ll have to wait and see.