“You’d be a fool to hold anything but cash and a few bars of gold.”
You may recall David Stockman being President Reagan’s Budget Director. Since then, he’s had a checkered business career, with the leveraged buyout firms The Blackstone Group then Heartland Industrial Partners, where he made, and sometimes lost fortunes.
In this Business Insider interview, Stockman discusses his long-held opinions on our current economic situation, and why he doesn’t currently hold any stocks or bonds.
“I invest in anything that Bernanke can’t destroy, including gold, canned beans, bottled water and flashlight batteries.”
From an earlier CNBC Interview with David Stockman.
Here are a few of the highlights:
“At some point confidence is lost, and people don’t want to own the (Treasury) paper. I mean why in the world, when the inflation rate has been 2.5 percent for the last 15 years, would you want to own a five-year note today at 80 basis points (0.8 percent)?”
“The Fed is a patsy. It is a pathetic dependent of the big Wall Street banks, traders and hedge funds. Everything (it does) is designed to keep this rickety structure from unwinding.”
About The Interesting People Series
The interesting people series presents informed, well-reasoned and sometimes contrary perspectives from prominent economists, policy makers, and market watchers. Please note this is intended to showcase interesting ideas, not solely ideas with which I agree.