Wednesday, April 16, 2008

2007 - Soros Predicts Recession. 2008 - Bernanke and Paulson Still In Dark

Frugal Ben says investors need truthful information from public officials, not cloying bon-bons. Well, it was Valentine's Day!
February 14 2008
Treasury secretary and Fed chairman say rate cuts and rebates should keep economy out of recession

NEW YORK ( -- Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson both acknowledged problems in the U.S. economy Thursday, but both said they believe the nation will avoid falling into recession.

The two made their comments at a hearing before the Senate Banking Committee about the economy. Their testimony comes in the wake of troubling economic readings that have raised recession fears on Wall Street...
Not everyone was still in the dark:

From "The Face of a Prophet": April 2008 Article about George Soros.

...But last summer, at a luncheon at his home in Southampton with 20 prominent financiers, he struck an unusually bearish note.

"The mood of the group was generally gloomy, but George said we were going into a serious recession,” said Byron Wien, the chief investment strategist of Pequot Capital, a hedge fund.

Mr. Soros was one of only two people there who predicted the American economy was headed for a recession, he said.

Shortly after that luncheon Mr. Soros began meeting with hedge fund managers like John Paulson, who was early to predict a crisis in the housing market. He interrogated his portfolio managers and external hedge funds that manage his fund’s money, and he took on new positions to hedge where they might have gone wrong. His last-minute strategies contributed to a 32 percent return — or roughly $4 billion for the year.

You think Henry Paulson might learn something from John Paulson, or what? (They are not related. )

No comments: