Posted on 05/24/2010 6:13:40 AM PDT by blam
Seth Klarman: We've Been Feeding On The Government's "Hostess Twinkie Market" And We're About To Starve
Courtney Comstock
May 24, 2010, 8:48 AM
At the CFA institutes's annual conference, Seth Klarman spoke to the audience about how we've been living off a "Hostess Twinkie Market" since 2008.
Marketfolly has the full notes from his speech from the conference, in which he explains:
Hostess Twinkies make childhood happier with totally artificial ingredients. The market has been made happier by government manipulation. 0% interest rates, Mortgage Lending Programs, Cash for Clunkers, TARP, etc...I'm worried to this day about what would happen if all the manipulation wasn't happening... And it's continuing with the European bailouts.
It's as if the Government is in business to give bad financial advice and force unsophisticated (and sophisticated) investors to speculate. In the short term performance game, everyone needs to keep up...
He goes on to say that he's more worried about the world than at any point in his career. (Like a bunch of other people.)
[snip]
(Excerpt) Read more at businessinsider.com ...
What’s been the performance of Klarman’s investments?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.