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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...

Despite Government propaganda and manipulated statistics to the contrary, our economy continues to deteriorate. For every "green shoot" highlighted by the Government and its lackey media, multiple contra-examples are cited by independent analysts. To continue to deny reality risks credibility. Perhaps that is why S&P, arguably a sock-puppet of Wall Street, on Monday made its announcement regarding the financial condition of the US. As reported by the Wall Street Journal: "Standard & Poor's Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large...