Seth Klarman, "I’m skeptical that the European bailout will work"

By on May 25, 2010

Jason Zweig, writing for The Wall Street Journal, reports that legendary investor Seth Klarman is as worried about the world economy as he has ever been during his career as a money manager.

Zweig interviewed Klarman in front of a standing-room-only crowd of 1,600 financial analysts at the CFA Institute annual meeting in Boston.

Mr. Klarman said, “The government is now in the business of giving bad advice.” Later, he got more specific: “By holding interest rates at zero, the government is basically tricking the population into going long on just about every kind of security except cash, at the price of almost certainly not getting an adequate return for the risks they are running. People can’t stand earning 0% on their money, so the government is forcing everyone in the investing public to speculate.”

Klarman proceeded to speak about what was worrying him. There is much more at the source link directly below.

Source: The Wall Street Journal

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