What Hugh Hendry Said About The PIIGS Back On Jan 2009

Dedicated to Solomon:

• solomon said...
  Is this Mr Hugh, the same hedge fund manager that predicted the last fall of Wall Streets?If it is, I think he is the person who bet China economy will slow too.

Regarding Mr.Hugh.

He had feared so for the PIIGS since Jan 2009! This was from a posting from ZH...

• ........ the esteemed Columbia professor, at 4:50 into the clip, asks "How long has this Greek question been on the table. Ablout 10 weeks maybe?" A rather violent explosion from Sachs follows when Hendry calls him out on his tenured stupidity. All this was discussed yesterday. However, we wanted to provide a response to the Ivy League professor, as he did pose a legitimate question. In the following FT interview from January 2009, Hugh Hendry discussed the future of the eurozone and the PIIGS, and at 24 seconds into it, he provides the response Sachs is seeking: "I fear [the collapse of the Eurozone] is becoming more likely." He follows "If we saw parity with the euro, my goodness, that would be deemed to be unthinkable." And concludes, "There is a shortage of dollars. People think I'm crazy - they are printing billions, trillions of dollars. But keep in mind America has $50 trillion of debt outstanding. And that was fine because they thought it had $50 trillion of assets. And what we are discovering is these asset prices deflate - it's vaporization..." Dear Mr. Sachs - the very person you were sitting across the table from foresaw everything to the dot, just as it would happen 16 months later, even as you were calling up old buddies to get that Teacher of the Year award, or get that extra fellowship (in demagoguery?). Our advice to you is do what your parents did, get (an honest) job sire.... which will never happen - pouring the Kool Aid is easy and pays well. So here is our second bit of advice: watch all Hendry appearances, and listen to what he says. He will always ends up right, and you will always be wrong, since you defend a broken system which is fated for implosion. And just as Hendry sees deflation first, then hyperinflation (and watch this clip for some more brilliant insight), so it shall be. And for some reason people like Sachs will once again be invited to roundtables, in which they will goundlessly claim that nobody foresaw any of ensuing Keynesian collapse... So now that we have answered your question, we have one of our own - how does Columbia allow this level of mediocrity to be publicized on national television?

23 Jan 2009.

It's Time To Panic: Debate On European Banking Crisis

Some of the most sensible words said about the European banking crisis.

Taken from an interesting roundtable discussion shown on Newsnight.

• Seriously, says Hugh Hendry. It's time to worry. Panic.
  
  "Banks today are refusing to lend to each other. Bank share prices are collapsing. We have no ability to gauge the credit-worthiness of the banking system."
  
  "I say, let's purge this system of its rottenness," recommends Hendry. "Let's take on a recession. It's going to be tough. People are going to lose their jobs."
  
  "The banking sector is responsible for gross folly," he says. The solution is just, "Don't pay them. Don't reward folly."
  
  "We can spread this over 20 years or we can get rid of it over 3 years... You make a mistake, you pay for it." ( Source: here )

( Here's a new nice article on Hugh Hendry, hedge fund manager of Eclectica Management : here on independent.uk )

Do watch the video...