Juggling Dynamite

If you can get through the comically over-dramatized lead in for the show…much of the content of this discussion is worthwhile.  Also Koch industries is the sponsor of Wall Street Week so a pro-oil bias is baked in. That said, Bass offers some overview assessments on the US as the latest swing producer and is clear that he sees specialty opportunities in some sections of the energy capital structure and specifically distressed debt, but is not recommending that people try to pick individual energy stocks.

Episode 35 of Wall Street Week features Hayman Capital founder and principal Kyle Bass, who discusses the global economy, Federal Reserve policy, pharmaceutical patents and energy investments.  Here is a direct video link.

Laughable question of the day: “Is there any chance that the Fed can control asset bubbles?”

True answer: Control bubbles? The Fed created a series of asset bubbles over the last 16 years–tech wreck, housing wreck and QE mania– and the collateral damage of the third QE bubble is hitting the world now.

Past NBER President Martin Feldstein discusses the economy and Fed policy.  Here is a direct video link.

If you haven’t seen ‘The Big Short’ yet, do.  See ‘The Big Short’ and demand change.

Far from a historical episode now fixed or behind us, the film is entirely relevant to the dominant risks still at work in financial markets today.  People with savings, owe it to themselves to comprehend the system they are working within.