Stanley Druckenmiller is Totally Clueless About How Washington Works

Stanley Druckenmiller isn’t a household name. He isn’t nearly as well-known as George Soros even though he significantly contributed to Soros’ success. He is also one of the 300+ hedge fund managers Insider Monkey tracks. This weekend in a WSJ article, he said that he isn’t worried about technical default and that he is long treasuries. He thinks the market knows the difference between a technical default and a Greek-style real default, so he doesn’t mind waiting a couple of weeks to receive his interest payments as long as it means massive cuts in entitlements. “One of the reasons I bought the Treasurys a ways back was I thought [House Budget Chairman Paul] Ryan was serious. I mean I heard some serious things that I hadn’t heard in a long time,” Druckenmiller said.

DUQUESNE CAPITAL

These statements clearly show how clueless Druckenmiller is about how Washington works. The number one rule of democracies is that it is easier to give entitlements than to take them back. Unless the government is literally on the brink of  a  real default, it is nearly impossible to significantly cut entitlements. This is why Greece and other European economies are in trouble and it’s very likely that we will go through the same process within 10 years or so. Republicans won’t be able to make a significant dent in the entitlements older people will be getting. One way or another younger people have to pay for this inter-generational Ponzi scheme.

Any voter who is older than 50 years old won’t accept entitlement cuts and will vote to delay any potential tax increases. There are nearly 100 Million of them in 2010 and a majority of them cast their votes. They are also represented by powerful lobbyists such as the AARP. Anyone who expects to reform the entitlements in a meaningful way is a dreamer.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!