"Young people are not going to be talking about cutting back," exclaims billionaire hedge fund manager Stanley Druckenmiller, ominously concluding "there will be nothing to cut back." The reason he is so doom-full about the future - an aging population will present a "massive, massive problem" for the U.S. in 15 years - as Bloomberg reports, because of demographics, "we're just using more and more of society’s resources to fend for the old people," warning that Obama's plans to tax the rich to pay for more social services for the poor would be futile.
“We’re going to go from five workers of working age supporting every elderly person to two and a half because of demographics,” said Druckenmiller.
“We’re just using more and more of society’s resources to fend for the old people.”
As Bloomberg reports, Druckenmiller, 61, has argued for several years that the mushrooming costs of Social Security, Medicare and Medicaid will bankrupt the nation’s youth and eventually result in a crisis worse than the financial meltdown of 2008. The government will have to reduce payments to the elderly, he said at the event.
...an aging population will present a “massive, massive problem” for the U.S. in 15 years.
“The young people are not going to be talking about cutting back,” Druckenmiller said Wednesday night in New York at an event hosted by Addepar, a technology company that provides software to financial advisers, fund managers and family offices. “There will be nothing to cut back.”
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Druckenmiller also had some comments on the share buyback debacle in US equity markets...
Druckenmiller criticized companies for borrowing money to pursue corporate buybacks.
“I think it’s nuts,” he said. “If you’re running a business for the long term, the last thing you should be doing is borrowing money to buy back stock.”
Finally, Druckenmiller concludes,
President Barack Obama’s proposals to tax the rich to pay for more social services for the poor would be futile.
“That’s not where the money is,” he said, instead pointing to spending on entitlements.
But then again - when did futility stop the governmenmt?