Fisher's on Puplava again - last time he uttered this nugget

[Spartacus]

a few months ago, just before the troubles really started, Fisher said (paraphrased)

Only a small number of people are in trouble with credit.

we are nowhere near the limit of credit - the world can handle and will take out a lot more credit.

Wonder if he'll have another doozy like that one this weekend.

[c1ue]

Re: Fisher's on Puplava again - last time he uttered this nugget

Ken Fisher is the modern equivalent of the boiler room operator.

He just calls his institution a 'hedge fund'; what that company REALLY does is aggressively seek out people's money.

One talking head I'm looking forward to getting whacked by the freight truck of history...

[GRG55]

Re: Fisher's on Puplava again - last time he uttered this nugget

Originally Posted by Ken Fisher

Only a small number of people are in trouble with credit.

we are nowhere near the limit of credit - the world can handle and will take out a lot more credit.

I've heard Fisher interviewed a couple of times on TV and can't say I have a natural affinity for his Panglossian demeanour (see I learned something, Rajiv ).

However, in a way he is correct. Although the Anglo-Saxon country citizens may now be overindebted, and a material portion of that cohort is in trouble with credit, it's a small part of the world.

In the Middle East residential home mortgages are a very recent innovation (just a few years, literally) and the high credit standards remind me of when my parents had their mortgage. Up till now the nationals in this region borrowed money from their families to buy the land and build a home. The same pattern is going on in India. Although I have no direct knowledge, I would expect it's much the same throughout SE Asia & China.

If that is the case, it means the part of the world that is gaining wealth the fastest likely "can handle and will take out a lot more credit" in the years to come.

[Spartacus]

Re: Fisher's on Puplava again - last time he uttered this nugget

In the earlier interview he was speaking about the US consumer, private equity and general corporate debt

In a way he is correct. Although the Anglo-Saxon country citizens may now be overindebted, and a material portion of that cohort is in trouble with credit, it's a small part of the world.

The way he's correct is if a hyperinflation erodes the current debt so it's paid in worthless dollars, and (some ) people are making a lot more $$$ and can take out much higher loans based on worthless $$$$

[GRG55]

Re: Fisher's on Puplava again - last time he uttered this nugget

In the earlier interview he was speaking about the US consumer, private equity and general corporate debt



The way he's correct is if a hyperinflation erodes the current debt so it's paid in worthless dollars, and (some ) people are making a lot more $$$ and can take out much higher loans based on worthless $$$$

Well he was quoted as saying "...the world...".

If his "world" consists solely of the US consumer, private equity and general corporate debt, that would suggest a level of inbreeding available only to those who have enjoyed a long, lucrative career ensconced in the incestuous confines of Wall St.

[Spartacus]

Re: Fisher's on Puplava again - last time he uttered this nugget

Good point.

I quoted loosely in my paraphrasing of his original interview.

I'm going to have to get his book though, to tease out what he means - I couldn't have heard this right -

In this interview he said even debt defaults are good because somebody made money off the economic activities of the original sale and all transactions that flow - securitization, debt service employment.

It's bad for dumb individuals who go under, but bad debt is overall good for the economy

Well he was quoted as saying "...the world...".

If his "world" consists solely of the US consumer, private equity and general corporate debt, that would suggest a level of inbreeding available only to those who have enjoyed a long, lucrative career ensconced in the incestuous confines of Wall St.

[GRG55]

Re: Fisher's on Puplava again - last time he uttered this nugget

Good point.

I quoted loosely in my paraphrasing of his original interview.

I'm going to have to get his book though, to tease out what he means - I couldn't have heard this right -

In this interview he said even debt defaults are good because somebody made money off the economic activities of the original sale and all transactions that flow - securitization, debt service employment.

It's bad for dumb individuals who go under, but bad debt is overall good for the economy

You must be kidding. Following his logic then we should force the regular and repeated bankrupcy of entire sectors of the economy. The bigger the better. Just think how "good" that would be for the economy.

This is similar to the argument that was repeated endlessly and mindlessly after Katrina - that natural disasters like wiping out New Orleans creates beneficial economic stimulus. I recall at least one person on this site repeat that nonsense in reference to the recent California fires. That sort of fuzzyheaded thinking should qualify one for Congress or the Senate. :p

[Spartacus]

Re: Fisher's on Puplava again - last time he uttered this nugget

You must be kidding. Following his logic then we should force the regular and repeated bankrupcy of entire sectors of the economy. The bigger the better. Just think how "good" that would be for the economy.

This is similar to the argument that was repeated endlessly and mindlessly after Katrina - that natural disasters like wiping out New Orleans creates beneficial economic stimulus. I recall at least one person on this site repeat that nonsense in reference to the recent California fires. That sort of fuzzyheaded thinking should qualify one for Congress or the Senate. :p

that's what I understood from what he said this week. Like I wrote, looks like I'll have to get the book to fully understand