Einhorn definitely gets on the TSA terrorist watch list for this.
Here's the Zero Hedge preview of what went down:
One of the Fed's more arrogant former apparatchiks (of the "100% confidence" interval) Larry Meyer, currently at expert network Macroeconomic Advisors which is used by the likes of Pimco to get inside information on what the Fed will do at its upcoming meetings, appeared on CNBC earlier and attempted to school David Einhorn on "Economics 101." What ensued was yet another confirmation that these Ph.D's (a term we always use in the most pejorative, NC-17 context possible) who destroyed the world, have absolutely no idea what the hell they talk about, and make up bullshit scenarios on the fly....And while he is unable to respond to any of these...all Meyer can do is assume the claim that easy monetary policy stimulates aggregate demand as factual, where Einhorn put the smackdown: "I think you can argue that, because we have gotten to the point where the transmission method [sic] is broken. You are trying to create a wealth effect which is another asset-based economy thing, it's very questionable whether higher stock prices cause lots of incremental demand, and you have the cost of food and energy which are real things that people have to pay for. And if you have to pay $3, $4 or $5 for gas, you have less money to go out to eat." Meyer's response once again: is nothing less than derisive laughter with no facts to support his claims whatsoever
It's Greenlight Capital, Not Gaslight.
ReplyDeleteWhat an effing idiot.
ReplyDeleteLook at the mirror?
Blame China?
Economic 101?
Thanks, corrected.
ReplyDeleteWhen in doubt, blame in on China. FAIL!!!
ReplyDeleteI'm now about twice as excited as I was before to read my copy of Einhorn's "Fooling Some of the People All Of The Time" which showed up just last week!
ReplyDeleteI heard this exchange in the car today and nearly puked from laughing so hard. Though I wasn't sure who was pontificating, my first thought was "who is this idiot and why does he have any credibility?"
ReplyDeleteWhile I understand the end result is the same: higher prices, doesn't Meyer have a point by saying that increased commodity demand (from other countries)resulting in increased commodity prices, isn't something US policy can control?
ReplyDeleteIsn't this a different type of inflation than one driven by a devalued dollar?
Meyer is just trying to muddy the water. Increased demand from other countries has an impact, but Bernanke's printing also has an impact and if he continues printing the way he is, it will have a far,far greater impact on prices than increased foreign commodity demand.
ReplyDelete