Tuesday, July 28, 2015

Was I right or was I right? Stupid eventually sinks to the bottom.

Back in 2012 I wrote an article about hedge fund little boy, David Einhorn.

(Click on the image above to read the entire post.)

In that post I talked about how Einhron was at some conference and made some really stupid idiotic comments like these:

"Norway is the only country in the world which can finance itself."
"China is misunderstood and is not an investment opportunity because it doesn't have enough money to feed the economy."

Norway can "finance" itself? Yeah, um, is that a revelation? (He's right, but for the wrong reasons.)

And China doesn't have enough yuan? Is he serious?

I think at that conference or shortly thereafter Einhorn announced that he had a huge position in gold because he said that he had dinner with Bernanke and was scared shitless at the answers to the questions he  posed to the former Fed Chairman. His thoughts went something like, "Wow, all this QE and 'money printing' is going to create hyperinflation."

Right...he didn't even BEGIN to understand monetary operations. Nothing. Nada. Zilch. Totally fucking clueless.

And NOW we see this:

Hahahaaha!!!!!!! The gods have delivered!!

Einhorn has deservedely been slaughtered in gold. He's Schiff with a bigger purse and maybe not for long!

These guys are the worst...the absolute, worst. As far as I am concerned they cannot lose money quick enough. If governemnt won't "euthanize" them, which they won't, then maybe they'll just die off from their own stupidity. But that's probably wishful thinking because I'm sure they'll  just get their bought politicians friends to enact laws and policies that force their victims to pay them back for all their losses.

Yes, Einhorn's a billionaire and for the life of me I will never be able to figure out how that happened. If Einstein were alive today he'd have trouble with that, too, and by the way, Albert Einstein was arguably one of the smartest humans to ever walk the planet, but he made like $60k per year in today's money. Just sayin'.

What irony...Einsten and Einhorn. The names sound very similar, but BOY, what a difference.


John said...

Why are the likes of Bass, Einhorn and the rest of them incapable of learning the lessons of Japan? Why do these lessons not lead them to investigate the one economic paradigm that explains sovereign money, endogenous money, central bank operations, the role of bonds, the nature of inflation, etc?

It just goes to prove the lie that money managers are not ideological and are just about making money.

Matt Franko said...

John they dont understand it... the tip off is their constant and exclusive use of metaphor in their alleged explanations.. rsp

John said...

Matt, that's what makes it so inexplicable, especially when money is involved. Can it be that they don't understand what people like you are probably sick to death of explaining? After all, it's not that difficult to understand. For instance: Step 1. Go to YouTube. Step 2. Bring up Mike Norman Economics videos. Step 3. Listen.

Surely what's more likely is that they are ideologically deaf, dumb and blind, indoctrinated from birth until receiving their Harvard MBA and starting up their own hedge fund? It's like a religious order: you get baptised, go to sunday school, enter a seminary and one day end up as an archbishop at a Connecticut hedge fund.

Ideology is more powerful than a bad education. In any case, how much would it even matter? Supposing you could miraculously implant the mammoth brains of Wray, Mitchell, Mosler, Norman and co into David Einhorn's small skull. Would Einhorn's returns be phenomenally better?

Anonymous said...

"Why are the likes of Bass, Einhorn and the rest of them incapable of learning the lessons of Japan? "

Perhaps a method of using "losses" to feather an offshore nest? If so, then it would make sense to cash in on the popular rhetoric. Just a different sort of the "distribution" phase.

John said...

Bass and Einhorn want to lose money? Are they graduates of the Max Bialystock school of hedge fund investing?

Jake C said...

Okay,Gold has been a bed bet.
But what about stocks and City property prices.
All this QE has caused consumer good inflation.
But tech kids are still becoming billionaires and the rent and property prices keep going up.

That is an inflation of sorts,the rent is hurting some people in particular.And what about these exploding Equities.

I am not sure why seeing as we have seen deficit reduction.But we have seen massive QE...... So what exactly explains the stock price growth and property price inflation right?just after a huge recession.

Jake C said...

Hasn't* caused consumer price inflation

Matt Franko said...

"it's not that difficult to understand"

John its not difficult for YOU...

I think we take for granted certain mathematical abilities we have that others don't seem to possess...

We often posit: "are they stupid or subversive?"

Here at MNE, for years I have taken the side of "they are stupid" (morons) at least for arguments sake... I could be proven wrong... but I DO believe that from a secular perspective, these people lack a certain cognitive ability, I cant fully explain what is going on with them but it is related to the concept of Mathematical Maturity which has a wiki here:


This sort of explains what I see with these people, they are not "mathematically mature" ... they have a hard time with understanding systemic relationships where systems are best analyzed and understood via mathematics.... they are not qualified/competent to be working in the areas they are working while lacking this mathematical cognitive ability imo...