Sep 112010
 

The big money is pessimistic according to a report from CNBC“EXCLUSIVE: Outlook Gloomy at Secret Billionaire Meeting”:

For 25 years, legendary Wall Street strategist Byron Wien, now with The Blackstone Group, has held summer meetings with high net worth individuals to get their outlook on the global economy and investing. This year’s group, totaling fifty individuals and including more than 10 billionaires, was decidedly pessimistic on the U.S. economy, investment opportunities and the Obama administration.

“They saw the United States in a long-term slow growth environment with the near-term risk of recession quite real,” said Wien, in a commentary to Blackstone clients. “The Obama administration was viewed as hostile to business and that discouraged both hiring and investment. Companies and entrepreneurs were reluctant to add workers because they didn’t know what their healthcare costs or taxes were going to be.”

H/T to Financial Armageddon for the above.

There is a big difference between people’s mouths and their wallets. So-called pundits have nothing to lose (other than questionable reputations) when they make recommendations or pronouncements. Little attention should be paid to these carnival barkers. Instead, “Follow the money.”

  5 Responses to “Billionaires Typically Ain’t Dumb”

  1. You can make a case that billionaires are as dumb as any class of people once they start talking outside their core of expertise, which, being billionaires, they are encouraged to do.

    Once they reach the philanthropic state, billionaires tend to put their money where it will do the most harm.

  2. Princess on the steeple and all the pretty people
    They’re drinkin’, thinkin’ that they got it made
    Exchanging all precious gifts
    But you’d better take your diamond ring, you’d better pawn it babe
    You used to be so amused
    At Napoleon in rags and the language that he used
    Go to him now, he calls you, you can’t refuse
    When you got nothing, you got nothing to lose
    You’re invisible now, you got no secrets to conceal.

    How does it feel
    How does it feel
    To be on your own
    With no direction home
    Like a complete unknown
    Like a rolling stone ?

    Bob Dylan

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