Monday, March 4, 2013

Druckenmiller

Stanley Druckenmiller (started with George Soros) now:

He saw a big storm coming in 2004-05, and he went to high-ups in the system saying why; but they didn't care. He says he should've gone public, but that is of course, hindsight talking.

He sees a bigger storm ahead than the one we faced in 2008-2009; oddly, he bases this on demographics and the US liabilities towards, particularly, the elderly.

Rates are zero right now and that makes equities look cheaper, but the music will stop one day and it's gonna be bad.

On taxes, he says that it needs a major overhaul - amazingly, he says - cut corporate tax rates to 0% and charge dividends and capital gains at 30%. Anyways, many companies are paying 0% already and have plants abroad - they kinda steal from those paying 30%.
He is particularly piqued by PEs and carry income.

But he won my heart when the interviewer said: why dont you join politics.
"Because my wife loves New York and I love my wife."

One advice for your viewers: Try and imagine the world 18-24 months from now and not as it is today.

The video drags on after the 24 minute mark or so...

Addendum:
Forgot to mention that he shut his fund in 2010 because he didn't understand the system anymore.
Also, I have a feeling that I'm gonna keep coming back to this post for a few years.

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