You know where I stand on the Fed & Powell & their denials on exacerbating wealth inequality & the danger of the insane asset bubble they have created.
Well, here's Druckenmiller dropping truth bombs on Powell & the Fed on the very same subjects. pic.twitter.com/3PThE2I5B2
— Sven Henrich (@NorthmanTrader) May 15, 2021
Tag: Stan Druckenmiller
Druckenmiller Turns Apocalyptic: “Risk-Reward For Equities Is As Bad As I’ve Seen It In My Career”
Investing legend Stan Druckenmiller unleashed a firehose of cold water on market bulls today during an interview with the Economic Club of NY (the same venue that will interview Jerome Powell tomorrow on the topic of negative interest rates), when he said the “The risk-reward for equity is maybe as bad as I’ve seen it in my career,” (although “the wild card here is the Fed can always step up their purchases”), that the government stimulus programs won’t be enough to overcome the economic problems, that it makes no sense for the market to jump so much when optimism emerges around certain drugs like remdesivir (“I don’t see why anybody would change their behavior because there’s a viral drug out there”) and, most concerning, that “there’s a good chance that we just cracked the credit bubble that’s the result of free money.”