CAN YOU CURE A DEBT CRISIS WITH MORE DEBT?
25 May 2009 by TPC
2 Comments
The U.S. and U.K. believe they can cure a debt crisis by creating more debt. The only way to move past this credit crisis is to remove the debt from the system. Either through bankruptcies/defaults or restructurings. Great analysis here:
The track record for GaveKal's mutual fund is even worse than for Whitney Tilson's. All these guys skill set is in sales and shmoozing, not actual investing, which is fine for them. They make their money through subscriptions and fees. However, it doesn't do much for their investors. However, their interpersonal skills don't help their investors. The bloomberg screen isn't impressed by personalities.
Gavekal are also political shills, like Tilson, except they are right-wing instead of left-wing. For example, in one of their fund comments they were talking up the idea that the US give tax breaks for corporations to repatriate foreign earnings at a low tax rate, as a way to stimulate the economy. Well, the last time that was done in 2004, the econometricians dug in and decided the companies used the money to make distributions to shareholders, but not to create any jobs.
“Yes we can” cure a debt crisis with more debt. It's called “Change you can believe in”
MARKET QUOTES
THIS WEEKS MOST POPULAR STORIES
MARKET NEWS