HEDGE FUND LEGEND JULIAN ROBERTSON: Everything is in a bubble and it will end in 'chaos'

Business Insider ^ | September 28, 2016 | Bob Bryan

[expat_panama]

Julian Robertson, the legendary hedge fund manager behind Tiger Management, thinks central banks are fueling bubbles throughout financial markets.

"We don't have negative rates here in the States yet, but I think it's tragic that we've taken rates down this far," Robertson said this week at Bloomberg's Surveillance Primetime event. "I know the Federal Reserves all over the world are trying to ensure prosperity, but in doing so I think they are ensuring a huge bubble, which will be pricked, and we will all be hurt by it."

Negative and near-zero interest rates from central banks have allowed increased borrowing...

...it would seriously affect financial stocks because banks are holding so many negative-yielding bonds, and the chaos would carry "over to real estate" when the bubble pops. In other words, there are risks wherever investors look.

"Unless they buy a beautiful piece of art like our ceiling or some picture or something of that nature," Robertson said.

[expat_panama]

Whoa, welcome to a TERRIFICLY FABULOUS DAY!  Stocks are back up in rising volume, precious metals still trade nicely and futures traders say stocks will be up +0.56% an dmetals +0.78%.  Reason? today we get the GDP numbers:

8:30 AM GDP - Third Estimate
8:30 AM GDP Deflator - Third Estimate
8:30 AM Initial Claims
8:30 AM Continuing Claims
8:30 AM International Trade in Goods
10:00 AM Pending Home Sales
10:30 AM Natural Gas Inventories
 

Everything's perfect and everyone in the news knows it:

The Fed Is Leading Us To Economic Hell:Neither Trump nor Clinton Gets Economics - Mark Hendrickson, Forbes
Are Stocks In the U.S. Headed To the Moon? - Mark Hulbert, USA Today
Trump Is Owning Ms. Clinton on Trade - Alex Shephard, The New Republic
How Bankruptcies Shaped Trump's Political Style - Jonathan Lipson, USA
Inequality Built Donald Trump Coalition - Richard Reeves, Las Vegas Sun
Hillary Clinton's Big Tax Policy Mistake - David Leonhardt, New York Times
Open Letter to Trump Senior Advisor Peter Navarro - Don Boudreaux, CF
The Clintons May Have Had a Role In the '08 Crisis - Editorial, Investor's

[uncitizen]

Bkmk

[Islander7]

And the plan is to blame it all on free enterprise and the republicans.

Only Marx can save us now!

[japaneseghost]

bump for later

[Leaning Right]

Only Marx can save us now!

I know that in some quarters Marx is not held in high regard. Some people consider him a fool, or a dreamer. But there's truth in what he said! Just consider this quote:

My favorite poem is the one that starts 'Thirty days hath September' because it actually tells you something.

Marx (Groucho Marx, that is)

[The_Republic_Of_Maine]

So, what does the average Joe do to protect himself and his family?

[IncPen]

Obama and Soros have been licking their chops.

Because if Trump wins, they simply pull the stopper out of the drain and say, “Republicans”.

Then we’ll see what this country is made of.

[Jack Hydrazine]

Warren Buffett Is the Latest Billionaire To Jump Ship From The Markets
http://www.marketoracle.co.uk/Article56676.html
27SEP2016

[StormEye]

""We don't have negative rates here in the States yet ..."

I'm still trying to figure out what the hell
is a negative interest rate.

[cgbg]

(1) If you have an “investment advisor” fire them—stop paying fees—they are as clueless as you are.
(2) Have some gold and silver in your possession. If you want to leave some in a bank vault as well, fine, but be aware if things get bad you won’t be able to get to the vault.
(3) Buy stuff that lasts—clothes, long term storage food, smokes if you smoke, alcohol if you drink, health and beauty aid items—and overstock.
(4) If you don’t live away from cities figure out a way to make that happen—you don’t want to be in the middle of chaos.

Just for starters...

[Jumper]

Interest Rates have traditionally been a mechanism by which Governments made extra money not taken from the citizens.

Our Federal Reserve with coordination (G20/State Banks) internationally have done two things outside the norm. One is Quantitative Easing is now mainstream to the point some governments require it alone to stay solvent, e.g., they print money. The second thing is Near Zero Interest Rates (achieved only by printing money).

[marktwain]

“So, what does the average Joe do to protect himself and his family?”

Very tough question.

A few suggestions:

1. Vote Trump

2. Know your neighbors.

3. Store some food, guns, and ammunition.

4. Develop contacts with the local police/sheriff’s department.

[gattaca]

bkmk

[The_Republic_Of_Maine]

Thanks Mark, pretty much what I figured.

[The_Republic_Of_Maine]

What about maxing out your credit line to buy gold, silver, food, ammo, com gear, etc?

[citizen]

I'm still trying to figure out what the hell is a negative interest rate.

---

Instead of earning a small percentage of positive interest on your cash, with 'negative' interest rates you lose a small percentage interest on your cash.

The dollar amount on your monthly or quarterly statement will be a debit instead of a credit.

[Mr. Douglas]

Remember, Tulip bulbs were up. Until they weren’t.

The doom and gloomers are right. It’s just that their timing is bad. Bill Bonner kind of mocks himself when he gets on this. He says it’s definitely coming, and should already have been here, but he underestimated their ability to keep kicking the can down the road.

It will happen, probably VERY soon, but they will do everything possible to stop it until it is out of their control. It’s inevitable. What is going on can only be “voluntarily” stopped by HUGE austerity measures, which would be catastrophic for world economies and, frankly, the very life of hundreds of millions of human beings.

Or we can take the non-voluntary out, which will lead to a hot WWIII.

Rock, meet hard place.

[Mr. Douglas]

You pay them to keep your money.

[marktwain]

“Or we can take the non-voluntary out, which will lead to a hot WWIII.”

What is your analysis to WWIII?

The tulip bubble did not lead to war.

Most bubbles do not lead to war.