Last Friday concluded the annual SALT Conference out in Vegas. That's where a bunch of self-important, narcissistic hedge fund types sit around in the desert sun pontificating on the markets, economy, etc. From what I read out of the discussions the whole thing was pretty pathetic
This conference has increasingly become the new American "Davos." It's not just financial types anymore. It has been attracting high level policy makers, celebrities, journo's, athletes and the like.
Caitlyn Jenner was there. Wow. Now THERE'S a "Strategic Alternative."
The shindig was founded and has been organized by pint-sized, Anthony Scaramucci, a 5'4" world-of-finance impressario who is one helluva schmoozer and community organizer, it appears.
What the conference brought to light was pretty much what we have known and have been reporting here for a long time: that pretty much no one in the world of finance--indeed, its very titans--have a fucking clue as to what the hell they are talking about.
Not only do they suck in terms of their understanding, their track records suck too.
Basically the only thing coming from that conference was a steady stream of incoherent logorrhea. Nothing but doom and gloom. Every crisis or impending crisis you can think of was thrown up there to support all the idiotic and out of touch views that these morons subscribe to.
The China debt crisis. The Japan debt crisis. The U.S. debt crisis. Central bank emasculation. Yada, yada, yada.
They should have called it the "OOPS" Conference for "Out Of Paradigm Stupid."
As for their dismal performance Roslyn Chang, managing director of the China Investment Corporation (CIC), summed it up politely.
“I’m sort of disappointed with the performance, to say the least, of the industry,” she said. "Only less than 10% of managers are actually capable of adapting to the new reality. Probably 90% of the managers think they are part of the 10% anyway," she said.
Sort of disappointed? Ya think?
No shit, Roslyn. Your CIC has about $800 billion in assets and at this point I don;t know who is dumber: those clueless managers who continue to get everything wrong or your wealth fund that keeps $30 billion parked with these losers. CIC is literally buying their homes in the Hamptons.
Then of course you had Kyle Bass the Japan debt crisis idiot. He's moved on. Maybe it had something to do with negative interest rates (yeah, people are PAYING Japan to hold its paper) and a surging yen.
Now Bass is the new, Mr. China debt crisis. No mention of his disastrous call on Japan. He's still Scarmucci's boy, apparently. "Mooch" was so impressed by his "doubling down" on China that he wrote an article about him and posted it up on Linkedin the other day.
Hayman Capital’s Kyle Bass reiterated his bearish call on China’s yuan currency, saying conditions in the communist nation now feel like they did in the U.S. in early 2007 just before the financial crisis escalated. He says China’s official government data shan’t be trusted, but you can look at the country’s major trading partners in the region like Malaysia and Thailand to get a better picture of the true economic climate.
Cue the vomiting sound.
You had Schiff.
And you had this guy--Milton Berg of MB Advisors. He made headlines with his prediction we are on the cusp of a 30-year bear market” in stocks and bonds. Milton Berg? They guy oughta be called Milton Berle because he's clearly in the business of comedy.
Increasingly I believe that these guys are really selling sensationalism, nothing else. It's a giant scam.
Not a single heterodox point of view. Nothing. No reality. Just idiots running big money...blind.
And then there was former House Speaker, John Boehner. When asked what he was most proud of he said, "that under his speakership the federal deficit fell as a percentage of GDP."
Wow, you get the picture.
Truly vapid. The whole, damn thing.