The “Paulson” of the new generation, David Einhorn, has scored more winners this week than many achieve in a decade.
Today its the ex-high-flier Green Mountain Coffee (GMCR). Plus, he wrote a dissertation that simply and understandably articulates the policy of the Federal Reserve and our political class. It also highlights just some of the damage that has been wrought by “saving the system”.
It is now officially and commonly know now that the goal of our Policy Makers is to levitate asset prices. As recently as last week, I was debating Perma-Bull, Brian Wesbury (@wesbury) about the Control of Markets. He told me that HE lives in reality!
Holy Shit, it has truly become a Costanza World.
But back to our story. I’m always thrilled when someone far more important than me puts forth the wild conspiracy theories that we have been ranting about for years. No, I don’t take my lead from @zerohedge, because I can actually be bullish when appropriate, but his has been a voice that will be admired, again.
All I know is that most everyone has their fingers crossed and are hoping…
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Perhaps it’s more about unintended consequences than conspiracy theories. Saving the system has unanticipated repercussions. But the primary goal of saving the system is more urgent. If asset prices are to be levitated, then one should be positioned in the assets that will levitate. I don’t think that’s going to be cash or treasury securities.
Nicely done Scott. I’ve been adding index hedges over the last few days.