Kyle Bass of Hayman Partners was on CNBC's Strategy Session today. He's one of the few investors out there that is publicly concerned about the same things I am, only he has a heck of a lot more money and resources behind him than I do. So you might want to listen to him.
If you missed the show, here are links to part 1, part 2 and part 3. (sorry, could not embed the videos)
And here is a link to his February 2011 investment letter which is a must read.
My favorite paragraph:
"It was excess leverage and credit growth that brought the global economy to its knees. Since 2002, global credit has grown at an annualized rate of approximately 11%, while real GDP has grown approximately 4% over the same time frame – credit growth has outstripped real GDP growth by an astounding 275%."
Central bankers around the world are getting a smaller and smaller ROI for all their credit creation. The harder they puff, the harder their job gets.
This will continue until they can't puff any more. Then the process reverses, natural forces take over once again, and the house that credit built succumbs to what Jim Carroll would call some Wicked Gravity.
Rest In Peace Jim.
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