From WSJ, May 14, 2011
'A financial crisis is surely going to happen as big or bigger than the one we had in 2008 if we continue to behave the way we're behaving," says Stanley Druckenmiller, the legendary investor and onetime fund manager for George Soros. Is this another warning from Wall Street that Congress must immediately raise the federal debt limit to prevent the end of civilization?
No—Mr. Druckenmiller has heard enough of such "clamor and hyperbole." The grave danger he sees is that politicians might give the government authority to borrow beyond the current limit of $14.3 trillion without any conditions to control spending.
We may do well to listen to the man. He knows how the math works, and it's not working in our favor.
He's sanguine about a technical default by the US government, since it may serve a bit of reality onto everyone's plate.
And his Quote of the Week?
"People aren't going to wonder whether 20 years ago we delayed an interest payment for six days. They're going to wonder whether we got our house in order."
Amen, Brother Druckenmiller, amen.
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