This is an interesting, far-ranging discussion, worth a listen. Unfortunately the clip ends in the middle of his summary on how too loose monetary policies caused the financial crisis, and how similar policies threaten capital today. In closing he says: “…a necessary condition to have a financial crisis, in my opinion, is too loose monetary policy that encourages people to take undue risk and go out on the risk curve and do silly things. We should have shut this down in 1998, 1999, the NASDAQ bubble. We should have raised rates, we didn’t. Then we got the implosion.”
Then we got the credit/housing/commodity bubble…and implosion…then we got 3 years of QE…and now for the next trick??
“Stanley Druckenmiller, founder of Duquesne Capital Management LLC and one of the best performing hedge fund managers of the past three decades, talks about U.S. entitlement spending, political gridlock in Washington, Federal Reserve policy and leadership, and investment strategy.” Here is a direct video link.
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