Re: Klarman worried about political divide

[MarkS]

According to the NYT:

"Seth Klarman, a hedge fund billionaire some call the next Warren Buffett, wrote a sobering letter warning his investors of the economic impact of global tension, rising debt and pervasive political divide.

"It can't be business as usual amid constant protests, riots, shutdowns and escalating social tensions," Klarman wrote in the annual letter to investors, according to a New York Times column filed by CNBC "Squawk Box" co-anchor Andrew Ross Sorkin. "

[stahleyp]

He's been bearish since 2010....and the world hasn't fallen apart.

Eventually we will go through a serious downturn but who knows when.

[DTEJD1997]

Hey all:

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

Couple that with ignorance of current events and history. 

What could possibly go wrong?

[MarkS]

Hey all:

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

Couple that with ignorance of current events and history. 

What could possibly go wrong?
[/quote
+1
Dalio thinks AOC's tax plan may have legs.
https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2019-01-22/ocasio-cortez-buzz-hits-davos-as-dalio-says-70-tax-talk-to-rise?amp_js_v=a2&amp_gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2019-01-22%2Focasio-cortez-buzz-hits-davos-as-dalio-says-70-tax-talk-to-rise

[JSArbitrage]

Hey all:

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

Couple that with ignorance of current events and history. 

What could possibly go wrong?

AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?

[Gregmal]

I mean, in regards to taxing the haves, is there any doubt the have nots will be all for it? Gimme sum they say. With their hands out.

[Gregmal]

I'd like to solve the Cortez Ocazio puzzle.

Supposedly poor girl from the hood.
Attends top 25 university in the county that also happens to be one of the most expensive to attend, in one of the most expensive areas to live
Upon graduating becomes a bar tender

ALEX, I'LL TAKE SPOILED, LAZY, MILLENNIAL BRAT FOR $1000!

[Cardboard]

"AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?"

Taxing anything above $10 million at 70% rate is standard?

You are the one who should learn about what you are talking about!

Cardboard

[MarkS]

Hey all:

I am also worried about the political divide.  Say what you will...but it is certainly WORSE now than it was in 2010.

I am also distressed about the rise & seeming popularity of that Occasio Cortez from NY.  The vast majority of what she spouts is simply ignorant.  So many young people are NOT getting any type of education in finance or economics.  This has been going on for a LONG time, decades perhaps.

SO, if people have little to no understanding of economics, business, or finance, is it any wonder that they don't know how the system works/functions.  They are also scared and or skeptical of capitalism...and then think well geez, socialism is promising free healthcare, education, and TONS OF FUN!  Why not?  What could possibly go wrong?

Couple that with ignorance of current events and history. 

What could possibly go wrong?

AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?

She seems iffy to me.   https://www.realclearpolitics.com/video/2018/07/18/ocasio-cortez_unemployment_is_low_because_everyone_has_two_jobs.html

[LC]

"AOC has a degree in economics and her policies are pretty much the standard in the Western World (sans the USA).  What are you talking about?"

Taxing anything above $10 million at 70% rate is standard?

You are the one who should learn about what you are talking about!

Cardboard

I read a few days ago that 26 people essentially own 50% of the world's capital.

I think higher taxes on the uberrich would do quite a bit to help the income inequality that AOC is referencing when she talks about people working two jobs and still struggling to make ends meet. This is IMO due to wage stagnation:

http://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

You'll also note that any wage growth has gone to top earners.
http://www.pewresearch.org/wp-content/uploads/2018/08/FT_18.07.26_hourlyWage_increases.png