Real Talk on Janet Yellen, Eric Peters, Martin Shkreli, Artificial Intelligence, and Donald Trump

Jun 28 2017 | 2:10pm ET

On Wednesday, we discuss how much alcohol you would have to drink if you had a shot every time President Trump said “Fake News,” Janet Yellen’s irrational optimism, and why it’s difficult to fill a jury in this Martin Shkreli trial. 


"Would I say there will never, ever be another financial crisis? You know probably that would be going too far, but I do think we are much safer, and I hope that it will not be in our lifetimes and I don't believe it will be."

Mark the date June 27, 2017. 

That was the day that Federal Reserve Chair Janet Yellen said that we’ve experienced enough financial reform and improvements in global economies to prevent another financial crisis “in our lifetimes.”

that we’ve experienced enough financial reform and improvements in global economies to prevent another financial crisis “in our lifetimes.”

The ensuing sounds that follow such a statement are women weeping and men gnashing their teeth. Sounds so horrific that if we described them further, you would flee from your building.

Peter Schiff and Marc Faber are likely breaking their keyboards as they type at 200 words per minute to retort Yellen’s confidence. But let’s just point out the obvious.

When you hear this statement, you either laugh or you take a long, deep pause and wonder why and how Yellen could say something that surely will remain with her as long as history books log her name beside the title role in the Fed. 

The short expectation is that central banks have no limitation to using liquidity as a cure to the slightest fiscal sneeze. Let the banks run wild. Let nations on the brink of insolvency multiple times receive massive bailouts. 

Italy? You get a bailout before a “financial crisis…”

Greece… you get six.

“Investors on Wall Street have been trained like Pavlovian dogs to expect the Fed to react to volatility by lowering rates.”

While Yellen is talking smooth sailing… others are talking that a maelstrom will swallow the global economy whole.

Wait, whirlpool? Sorry, One River Asset Management CIO Eric Peters predicts a crash similar to an “avalanche.”  These disasters and metaphors are hard to track each day. 

"Unfortunately, the Twitter history is just horrific."

That’s defense attorney Benjamin Brafman talking about “Pharma Bro” Martin Shkreli. It turns out that negative publicity about Shkreli’s use of Twitter to hammer his critics has made it harder for lawyers to settle on a jury. 

Roughly 250 potential jurors have already been dismissed from the selection process.

Shkreli is infamous for his price-gouging of pharmaceuticals that his fund purchased. This led to his being named a “face of corporate greed.” However, the case has nothing to do with this, which people forget. He’s facing charges for allegedly lying to his investors.

“Despite the immense power of modern computing, it is neither advisable -- nor even possible -- to dispense with humans entirely.”

“Good news, everyone.” [In a Professor Farnsworth voice.}

Our future robot overlords may still need up in the future of finance.

At least that’s what hedge fund Winton has to say. 

“The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!”

That’s President Donald Trump accusing Jeff Bezos’ company of not paying taxes.

He said “Fake News.”


Wednesday’s Hedge Fund Reading List 

Oil & Companies News: Hedge funds hold near-record short positions in petroleum: Kemp

WSJ: Hedge Fund Activists See More Opportunities in European Companies

PayScale: Hedge Fund Managers Make Crazy Money

Reuters: Hedge fund exec Scaramucci lands post at Export-Import Bank

Marketwatch: Hedge fund Glenview criticizes Dow decision to delay Liveris retirement after DuPont merger

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Garrett Baldwin is the voice of the The Daily Alpha, the features editor for Modern Trader magazine, and the author of The Man with The Big Red Balloon.

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