Hegde Fund CIO: "Politicians, Policy Makers, And Central Bankers Are The Last To Panic"

By Eric Peters, CIO of One River Asset Management

Arrogance:  Having lived through many developed and emerging market crises over my 35 years, patterns repeat, rhyme. First comes a system that is materially out of balance. Such things take years to develop, which means private sector incumbents, politicians, policy makers, central bankers too, have figured out how to benefit from the imbalance persisting, which makes it likely that it does. The longer it goes on the more over-confident they become that they can contain it, control it. Arrogance. There’s corruption too, at least around the edges (rating agencies in 2008).