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Professor Stiglitz V Cocky Hedge Fund Manager - Newsnight


Cassandra Syndrome

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Hugh Hendry shows no awe for the renowned Professor on last night's Newsnight. As rude as this glib investor is he does speak a lot of sense and addresses the elephant in the room, Debt.

All is in this clip, so don't worry about Part 1

[video=youtube;E4MAifsp-8E]http://www.youtube.com/watch?v=E4MAifsp-8E[/video]
 
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powderfinger

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Hugh Hendry states his case clearly and puts his money where his mouth is Cassandra Syndrome.He comes across as abrasive,as if that matters. Hendry offered a contrarian unapology for hedge funds in an open letter,published last week.
He pulled no punches.

You don't know me; we've never met. But I fear you are being encouraged to dislike me. Let me explain: I'm a speculator. I manage a hedge fund. Apparently I profit from your misery. Accordingly, our political leaders are keen to see the back of me.
Only yesterday, Germany and France were calling for the "fastest possible" adoption of new rules to put an end to financial speculation. But before you write me off I ask that you listen to my side of the story.
We hedge fund managers are on your side - Telegraph
 

Cassandra Syndrome

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powderfinger

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Yes I agree. As you can see in my OP. I'm not chastising Hendry.
I see that.
The kernel of Hendry's position below.
Fearing that the huge scale of reckless bets within the banking system threatened another depression, our politicians have used public funds to bail out the economy's losers. And in doing so they run the danger of creating a plutocracy: a society ruled by the wealthy. Consider that fact that in Latvia school teachers have had to take a 35 per cent pay cut so that the Swedish banks who funded the real-estate bubble are repaid their imprudent mortgages.
We need to stop this socialisation of risk taking: heads I win, tails you lose. Consider the American government's enormous bail out of the failed insurer, AIG. According to the world's largest bond fund manager, Bill Gross, it is perfectly acceptable for the taxpayer to subsidise his returns. As he explained it to the investment magazine Barons: "All I'm saying is the government would lose almost $50 billion if it decides AIG no longer is worth supporting. It is a game of chicken. You either call the government's bluff or you don't."
 

Cassandra Syndrome

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Look back at that video clip and see how much in denial and how clueless the policy makers are. Hugh Hendry was spot on.
 

atlantic

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Hendry is spot on ,and I love the bit in the other video when he calls the boyos champagne socialist dunderheads.
Yes I agree. As you can see in my OP. I'm not chastising Hendry.
 

Cassandra Syndrome

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Hendry is spot on ,and I love the bit in the other video when he calls the boyos champagne socialist dunderheads.
Yep. I surprised the BBC invited him. He was proper right to be cocky, knowing the full extent of the debt problem. Stiglitz looks so dumb retrospectively.
 

atlantic

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The man lives in the real world where he knows that risk can make or break him, not unlike any business small or big.The three tit sucking arrogant nannyists ,socialistic jackasses live in the cosseted world of spending other people's money with no accountability, taking no risk and getting paid by their little serfs the taxpayer.
Yep. I surprised the BBC invited him. He was proper right to be cocky, knowing the full extent of the debt problem. Stiglitz looks so dumb retrospectively.
 

Hillmanhunter1

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Hendry is a jackass, or, to be anthropomorphically more precise, he is an arbitrage monkey. He clearly has no understanding of fiat money, nor of the legal and economic framework of monetary union. He may be right to say that greater attention needs to be paid to debt levels, but lets not forget that this guy makes a very comfortable living by fomenting volatility, and profiting from the misfortune of others. He wants Greece to default, he wants the Euro to fail, he wants stock markets to crash, because theres no great fortunes to be made in stable, predictable markets. He is not an investor and is not interested in creating and maintaining something of value.
 

Cassandra Syndrome

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A jackass he may be. Put he was still spot on. The so called experts look so stupid as usual. I love looking at the old clips of Bernanke in denial over the past 4 years. Or Jim Cramer or Mike Norman and all the other Snakeoil salesmen.
 

Hillmanhunter1

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In a 9 minute conversation he made one valid comment, and I was happy to acknowledge that, the rest was dross. When I go looking for people who have something meaningful to contribute to the debate about how stability can be restored I'm looking for a slightly higher hit-rate!
 

MPB

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Hendry is a jackass, or, to be anthropomorphically more precise, he is an arbitrage monkey. He clearly has no understanding of fiat money, nor of the legal and economic framework of monetary union. He may be right to say that greater attention needs to be paid to debt levels, but lets not forget that this guy makes a very comfortable living by fomenting volatility, and profiting from the misfortune of others. He wants Greece to default, he wants the Euro to fail, he wants stock markets to crash, because theres no great fortunes to be made in stable, predictable markets. He is not an investor and is not interested in creating and maintaining something of value.
And of course the Stiglitz solution is, you can always print more money.

Except we cannot, unless Germany decides for us.

Hendry is right, it is a house of cards and will eventually fail but the real problem is that we will not let it fail. We are intent on prolonging the agony.
 

Hillmanhunter1

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Hendry thinks that you can look a a Euro and, if it bears a certain letter, you can tell which country it comes from. Given that it is obvious where all of the coins come from I assume he's referring to the notes, and what he is saying is bollocks. You cannot tell what country Euro notes come from, and the Bundesbank (and all the other Euro area Central Banks) no longer issues currency (as opposed to printing it on a contractual basis on behalf of the ECB).

Hendry is not an analyst or an economist, he is a barrow-boy - nothing wrong with that, all markets need them - but arbitrage, not insight, is his bag.
 

Where'smyNAMA?

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And of course the Stiglitz solution is, you can always print more money.

Except we cannot, unless Germany decides for us.

Hendry is right, it is a house of cards and will eventually fail but the real problem is that we will not let it fail. We are intent on prolonging the agony.
Unfortunately I agree with you.......what's the solution tho?
 

MPB

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Unfortunately I agree with you.......what's the solution tho?
The solution is actually very simple but not very popular.

The solution is to default. Not just us. But everybody.

The problem is that, those that you will default on, are far better connected than you, the citizen is, to your own politicians.
 

makingjam

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Hendry thinks that you can look a a Euro and, if it bears a certain letter, you can tell which country it comes from. Given that it is obvious where all of the coins come from I assume he's referring to the notes, and what he is saying is bollocks. You cannot tell what country Euro notes come from,
Euro Banknote national identification codes:

(countries in brackets have not adopted the euro)

Z Belgium
Y Greece
X Germany
(W) (Denmark)
V Spain
U France
T Ireland
S Italy
(R) (Luxembourg)
(Q) Not used
P Netherlands
(O) Not used
N Austria
M Portugal
L Finland
(K) (Sweden)
(J) (United Kingdom)
(I) Not used
H Slovenia
G Cyprus
F Malta
E Slovakia


Hendry is right, although I think is point is a little misleading. A € is a € and if the thing goes belly up I think the letter that the serial number starts with will matter little.
 

captainwillard

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Hendry does not want too much volatility. That can cost hedge funds dearly.

But he is a rude arrogant git. I switch off CNBC when I hear his Galwegian accent.
 

owedtojoy

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I though Hendry came across as a petulant pr*ck who found he was not going to make the big killings he thought.

Typical of the type of a-hole gliberterarians/ notaxetarians just love - always telling the poor to be "parsimonous" and "sensible" about spending money, while they rape the planet and destroy its natural resources.
 

Cassandra Syndrome

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I though Hendry came across as a petulant pr*ck who found he was not going to make the big killings he thought.

Typical of the type of a-hole gliberterarians/ notaxetarians just love - always telling the poor to be "parsimonous" and "sensible" about spending money, while they rape the planet and destroy its natural resources.
Didn't know Obama was a nontaxetarian. He gets a Nobel Peace Prize for raping Afghanistan and stealing their opium and securing the natural gas pipelines for his elite buddies.

Liberal hypocrisy has that edge over neo conservatism in the dark arts status.
 

Cassandra Syndrome

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Hugh Hendry shows no awe for the renowned Professor on last night's Newsnight. As rude as this glib investor is he does speak a lot of sense and addresses the elephant in the room, Debt.

All is in this clip, so don't worry about Part 1

[video=youtube;E4MAifsp-8E]http://www.youtube.com/watch?v=E4MAifsp-8E[/video]
Worth watching again 18 months on giving all that's happened since.
 
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