Posted on 11/06/2022 1:26:45 PM PST by george76
The global economy is at risk of crippling hyperinflation and “extraordinary” conditions that could prompt the worst financial crisis since World War II, according to major hedge fund Elliott Management.
Elliott Management, led by famed billionaire investor Paul Singer, warned clients that extreme conditions present in the current economic landscape have “made possible a set of outcomes that would be at or beyond the boundaries of the entire post-WWII period
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The letter also cautioned that economies around the world are “on the path to hyperinflation” — a term referring to uncontrollable acceleration in the cost of daily necessities.
While hyperinflation is not inevitable, Elliott said it would cause “global societal collapse and civil or international strife” if it does occur.
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current conditions are uniquely dangerous, even when compared to past financial crises such as the Great Recession in 2008 and the 1970s inflation surge.
“Investors should not assume they have ‘seen everything
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The tech-heavy Nasdaq is down nearly 35%, while the Dow Jones Industrial Average has fallen about 12%.
Elliott stated that markets face an array of “frightening and seriously negative possibilities” – with a 50% decline in equities a “normal” potential outcome given the risks.
The firm also took aim at the Fed and other central bankers, accusing policymakers of exacerbating the current trouble and being “dishonest” about the root causes of the decades-high inflation currently plaguing American consumers.
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Elliott is just the latest prominent voice to raise alarm bells about the global economic outlook.
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Hedge fund wizard Michael Burry – whose bet against subprime mortgages was famously chronicled in “The Big Short,” has argued for months that markets are in the midst of “the mother of all crashes.”
(Excerpt) Read more at nypost.com ...
If this means I can sell my old canoe and pay off my house I’m in.
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