The Washington Times Friday, March 1, 2013 Entitlement spending is driving the nation into deeper economic despair than most realize, said hedge fund guru Stanley Druckenmiller. âI see a storm coming, maybe bigger than the storm we had in 2008, 2010,â Mr. Druckenmiller told Bloomberg TV. The cost of Social Security, Medicare and Medicaid poses much more danger than the oft-debated sequester and will eventually bankrupt the nation, he said. The trioâs unfunded liabilities have already reached $211 trillion, some estimates say. His statements come as economists are reporting incomes for U.S. households are falling. Read more: http://www.washingtontimes.com/news...uckenmiller-i-see-storm-coming/#ixzz2MJbOjLHP Follow us: @washtimes on Twitter
$211 Trillion in unfunded liabilities is not a problem. Nancy Pelosi said there isn't a spending problem, Bloomberg said not to worry because we "have unlimited money". California as bellwether: Incomes are down the worst in twenty years and we know that all the Public Sector projections are only of the rosiest variety. It should be interesting to see how California does with the new, lower incomes for generating tax revenues. They might be ok as property taxes benefit from the current rise in property values but this business cycle is in the pre-recession stage already. Europe's employment numbers are showing declines. I mean, with all these rosy projections from the office of the Governor and the economy going the other way the shortfalls will have to be an increasing part of the Public Sector's reality.. Ooops I used "Public Sector" and "reality" in the same sentence.. Is that politically incorrect of me?
You never know, it could backfire on him(Obama). Maybe he'll get taught a lesson for a change instead of lecturing the country ad-nauseum.
"'A financial crisis is surely going to happen as big or bigger than the one we had in 2008 if we continue to behave the way we're behaving," says Stanley Druckenmiller," No, I am not quoting the OP, this quote is from May 2011. So Stanley keeps repeating this in every 22 months... http://online.wsj.com/article/SB10001424052748703864204576317612323790964.html
ZZZZzzzzzzzzz................ The bearishness stemming from this issue has been shouted from the rooftops for 25 years.
Druckenmiller doesn't seem to be saying when the problem will have to be addressed. He just says that if we continue on the same path it's not sustainable.
druckenmiller etc. have access to otc , custom made options, usually issued by banks. these options are unavailable to the public. these options are usually deep out of the money with long time horizons of perhaps 5 years. banks sell them extremely cheap to generate additional income. he is probably sitting on puts of some japanese bonds. look forward to billion dollar losses at the banks since they don't hedge these positions. e.g. as inflation exceeds the jap. gov't target of 2% to perhaps 5% the losses for the banks will be enough for another bailout. 5